Wills could be affected by plunging pension values as people look to sell off other assets to fund their retirement, warns Carr & Co.
Carr & Co says that with pension investments having lost value, those nearing retirement could be forced to sell the assets they had planned to leave to family and friends in their will in order to fund their retirement.
Senior Partner of Carr & Co and Wills specialist Sharon Smith says: “Many people who wrote a will leaving their home, shares and other assets to loved ones, could be forced to sell those assets to fund their retirement if their pension doesn’t cover it. This in turn will mean that many of those assets will no longer be available to leave to those they intended when they pass away.
“There are likely to be a lot of outdated wills as a result out there that need to be updated, as a result of this. For many, the days of leaving your home to your children could be gone, as many people will have sold the family home to make up the for pensions shortfall.
“It is absolutely essential to review and update your will with your solicitor when circumstances change in order to factor in these potential problems, otherwise you could leave nothing to family and friends when you fully intended to.”
Reports estimate that as much as a fifth has been wiped off the value of pension payouts due to tumbling stock markets and rising inflation. Carr & Co also warns that the high cost of care home fees and rising life expectancy could also eat into people’s assets, reducing the value of their estate when they pass away.
Sharon Smith says: “Many people could be forced to sell large parts of their estate – their home and other assets – to pay for care in older age. Updating your will in light of this is often overlooked, but it is essential if you want to leave something to your loved ones when you die at what is an extremely difficult time for them.
“Potentially, you could leave them nothing despite having written a will. Don’t let a will gather dust, especially in these uncertain times. Your estate could look very different now or in a few year’s time to when you wrote the will.”
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