July 23, 2015

Intestacy "timebomb" as baby boomer death rate climbs

The UK is facing a ticking timebomb as people born during the baby boom are increasingly dying off - many of them without a will.

The advancing years of almost a quarter of the UK's population and the fact 30 million adults - about half of the population - have no will means the UK is facing an intestacy "timebomb".

Baby boomers, those born between 1946 and 1957, make up 22% of the UK population, but from 2018 onwards their deaths will begin to climb.

The death rate, currently around 550,000 per year is expected to  "accelerate rapidly" from 2020 onwards to almost 670,000 per year by 2035, statistics from legacy analysts Legacy Foresight show.

"The combination of an ageing population and a lack of planning for the future means as a nation we're effectively sitting on an intestacy timebomb," Claire Henry, Chief Executive of the Dying Matters Coalition said.

Dying intestate means dying without a valid will and means your estate could be subject to a punishing tax bill, resulting in your children or beneficiaries having to pay 40% tax on everything passing to them.

Gary Rycroft, a solicitor and member of the Law Society's Wills and Equity Committee, said: "Failing to act now means the money people have worked hard all of their lives to earn may not go to their chosen beneficiaries such as children, other relatives or favourite charities.

"Worse a large chunk of the value of the estate could end up going to the taxman.

"The message is clear, speak to a solicitor and make a will sooner rather than later. Speaking to a professional now will save you money in the long run and will mean your final wishes are met."

Ms Henry urged people to plan ahead and talk to their families about their wishes.

"Failing to make a will means millions of Britons are putting their families at risk of added financial and emotional stress after their death," she said.

"Talking more openly about dying and planning ahead may not always be easy but it can help us to get our wishes met and spare our loved ones from dealing with the fallout if we haven't got our affairs in order."

The high-profile death of Rik Mayall last year illustrated the danger of dying without a valid will.

Because he did not have a will Mr Mayall's children now face paying 40% tax on the £1.2million estate, losing a large chunk of his lifetime earnings.

To Find a Solicitor visit:http://solicitors.lawsociety.org.uk/or search: 'Find a Solicitor' from your web browser.

For radio and television newsrooms:

Gary Rycroft, a wills and probate solicitor, and a member of the Law Society's Wills and Equity Committee is available to talk about the potential impact of the rising death rate.

If you would like to arrange an interview with Gary he can be contacted on 0771 705 8374.

Claire Henry, Chief Executive of the Dying Matters Coalition is also available for interview.

To arrange an interview with Claire, please contact Joe Levenson on 07795 158003

Alternatively please contact Chris Sealey on 07786 512 833, who will be able to help arrange an interview.