Remember a charity

The Remember a Charity campaign was launched in October 2002 to raise awareness of legacy giving as another way of donating money to charity. To mark the campaign’s second anniversary, a high-profile media campaign was launched in October 2004 based on new independent research by Remember a Charity, to raise awareness of the problems caused by poorly written wills. The key message, says THERESA DAUNCEY, is have your will written or checked by a professional.

Much of the Remember a Charity campaign’s success depends on its ability to continue involving legal and financial professionals who advise on the will-making process, as well as their governing bodies and institutions. Progress so far is good, with the Society of Trust and Estate Practitioners (STEP) as a key founding supporter, alongside Withers LLP and the Solicitor’s Pro Bono Group. In addition, over 430 legal practices have pledged their support to the campaign.

In recent years, the options available for preparing wills have increased dramatically. In addition to solicitors, people can now turn to DIY will packs and books, will-writers, banks and insurance companies. However, reports of fraudulent or negligent drafting of wills and handling of probate mean that many members of the public trust no one and simply seek the cheapest, easiest route to a will, or do not bother with one at all. There is little general understanding of the care needed in making a will or of the consequences of not making one.

A multitude of factors need to be considered when making an ‘average’ will, from inheritance tax to the options of trusts. Despite this, many people still think a will can be written in a few minutes. This view is compounded by frequent media reports encouraging people to do their own wills and telling them they can get one written quickly and cheaply.

By making a DIY will, a client misses out on the interactive process with a solicitor who knows the law and can make sure that the will contains no gaps. To minimise distress, confusion and wasted costs for the family and beneficiaries of the deceased, the will should take into account important related issues that an experienced, professional will-drafter would consider. By drafting their own will, people are putting their most precious assets at risk and essentially creating a lottery as to who will benefit from their will.

At present there is no official regulation or licensing of will-writers who are not solicitors and therefore no legal recourse if something goes wrong. Regardless of experience or qualifications, anyone can charge for will-writing services. The role of qualified professionals in the will-making process has, therefore, never been more critical.

Author of The Will-Writing Report, Danny Lee, a journalist and ex-solicitor says: “Clearly there is a huge hole in regulation of the will-writing market that needs to be addressed. This research will be ammunition to those currently considering the licensing of will-writers.”

David Harvey, chief executive of STEP, says: “The advantage of going to a solicitor is that they will have been examined on the topics that come up and will be far more aware of possible difficulties that may arise. There is a price for specialism, but you need to ask yourself what the estate is worth. The long-term cost of a taking a cheap approach may turn out to be very high.” This sentiment is endorsed by Adrian O’Loughlin, chair of The Law Society Probate Section, who says: “I would always regard it as being an integral part of good advice to mention the possibility of leaving bequests to friends, relatives or charity when advising a client in relation to their will.”

If someone intends to leave a legacy to charity, it is imperative that legal advice is sought to make certain that the gift is effective. Common ways in which charities lose out through badly drawn wills include:

Failure to use the full name of the charity can jeopardise a gift. For example, if a sum is left to a cause such as animal welfare with no named charity, it is difficult to know to whom the money should go;
An out-of-date or incorrect address can lead to confusion about which charity is intended to benefit;
Attempts to prescribe the specific use for the funds can make the gift to charity useless;
Will-writers may prepare a valid will but may not be aware of all the different options such as charitable gifts;
Many companies offer will-writing services via the internet, where there is little opportunity to discuss issues such as possible gifts to charity.

Research carried out by Remember a Charity among solicitors shows that 29 per cent use a pro forma that includes a charity bequest, and 42 per cent said they will include a charity in their own will.

However, one-third of solicitors only advise their clients about the inheritance-tax benefits associated with charitable legacies if asked about it. Nineteen per cent of the respondents said that the subject was difficult to approach and five per cent believed that it was not their job to advise about it.

Theresa Dauncey is director of Remember a Charity. Visit ww.rememberacharity.org.uk or call 020 7627 1207 for further information.