The recent sale of George Michael’s iconic Faith guitar at an auction for the price of £180,000 has attracted considerable attention in the media. Outside of the headlines, it serves as an important reminder of why having an up-to-date will is essential, particularly following a change in circumstances.
George Michael’s long-term assistant, Mrs Bailey, who legally owned the items which formed part of a substantial memorabilia collection, died unexpectedly in 2014 without leaving a valid will.
At the time of her death, Mrs Bailey was reportedly in the process of divorcing her husband. However, as they were still legally married, and Mrs Bailey hadn't executed a valid will, her estate passed under the intestacy rules, under which the surviving spouse has a significant inheritance entitlement.
Mrs Bailey is also reported to have been in the process of preparing a new will providing for her nieces and nephews, but it was never executed.
More than a decade later, the news of the memorabilia collection being auctioned by the surviving spouse is a timely reminder of valuable estate planning lessons.
What happens if you die without a will?
If you die without leaving a valid will, you are deemed to die intestate and, therefore, rather than your estate passing in accordance with your wishes, your estate passes in accordance with statutory rules. Under the statutory rules, who inherits your estate is dependent on your relatives at the time of your death.
This can, therefore, produce an outcome which isn't in keeping with your wishes.
Under the intestacy rules, personal belongings (also known as “personal chattels”) pass to the surviving spouse or civil partner. As the circumstances surrounding Mrs Bailey's estate illustrate, those belongings can have considerable financial as well as sentimental value. Your wishes in relation to personal belongings can be documented in your will or addressed in a suitable letter of wishes alongside your will to ensure that the correct individuals receive an item or a valuable collection.
Intestacy and divorce
It's recommended that you review the terms of your will whenever your circumstances change with separation and divorce being particularly important times to revisit your estate planning arrangements.
Separating from your spouse and commencing divorce proceedings doesn't, by itself, bring the marriage to an end. Until the divorce is finalised and the court has issued the final order (formerly the decree absolute), the parties remain legally married.
Therefore, if an individual dies without leaving a valid will and they are still legally married, the surviving spouse remains entitled under the intestacy rules.
It's therefore essential for anyone going through a divorce to update their will at an early stage to help avoid any unintended consequences.
It's also a timely reminder that divorce doesn't completely invalidate an existing will. Once a divorce is finalised, broadly speaking, provisions in favour of a former spouse are generally treated as though the former spouse had died.
When should you review your will?
It's recommended that you review your estate planning arrangements periodically. The following is a non-exhaustive list of events that might impact your personal or financial circumstances and prompt you to review your will:
Separating or divorcing
Marrying or entering into a civil partnership
The birth of children or grandchildren
Significant changes in your assets
Acquiring assets overseas
Moving overseas
The death of a beneficiary, executor or guardian
Final thoughts
Ultimately, a valid will helps ensure that your estate, including personal possessions of particular financial, personal or sentimental importance, passes in accordance with your wishes and to the people you intend to benefit.
The circumstances surrounding Mrs Bailey's estate highlight the importance of putting your estate planning arrangements in place without delay, particularly when your circumstances change. Keeping your will up to date can help avoid unintended outcomes and provide greater certainty for those you wish to benefit.
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