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So, your loved one has passed away, and no one has been able to find a Will. What happens now?

Where there is no valid Will, the rules of intestacy apply. This makes the process of applying to administer the estate and distribute the assets more difficult than when a Will is in place.

What is intestacy?

The rules of intestacy in England and Wales govern how a person’s estate is distributed if they die without a valid Will.

If a person is said to have died “intestate,” this means that they have relinquished their control over their estate, and the law is the sole determiner for the distribution of their assets.

These rules only recognise spouses, civil partners and certain close family members.

Under these arrangements, the only people to automatically inherit are married or civil partners.

If they also have children and the estate is worth more than £322,000, then the first £322,000 and their personal possessions will go to their spouse or civil partner and the rest will be divided in half between the surviving spouse and children.

Unmarried couples are not entitled to inherit anything automatically, no matter how long they have been together or whether they share a home, assets or children.   Although note that property or bank accounts held as beneficial joint tenants will pass to the surviving co-owner outside the intestacy provisions.

The lack of entitlement for unmarried partners can lead to distressing and financially difficult outcomes, with surviving partners often needing to make legal claims just to access jointly lived-in property or their partner’s finances that were perhaps used to support both of them.

How to administer the estate when there’s no Will

You will first need to value the deceased’s estate, taking into account any debts that need to be paid and any gifts made within seven years of the person’s death.

You will also need to calculate the amount of Inheritance Tax (IHT) liable on the estate and ensure that the correct forms and payment are sent to HM Revenue & Customs (HMRC) on time.

The next step is where the process differs from applying for probate in the case of a valid Will.

When there is no Will, you will need to apply for a Grant of Administration instead of a Grant of Probate.

This must be done by the most “entitled” person – i.e., the deceased’s next of kin. This will be the spouse or civil partner of the deceased, followed by any children who are over the age of 18.

Sometimes, there may be disputes over who should apply for Grant of Administration – for example, between surviving children if there is no surviving spouse or civil partner.  More than one child can apply.  It is also worth noting that for most intestacies a lengthy paper application is required as the online process is not available when there is more than one entitled person.

Once a Grant of Administration has been provided, you will need to liquidate the estate.

This is the official term for turning assets such as property and possessions into cash, which can then be distributed to beneficiaries.

In the absence of a Will, the liquidated cash goes automatically to their next of kin – usually a surviving spouse or civil partner, and potentially any children.

If the deceased has left no surviving spouse or children, the estate will pass to the next person most closely related to the deceased.

Managing intestacy with Palmers Solicitors

In an ideal world, everyone would leave behind a valid Will. However, life doesn’t always go to plan, and many people die intestate.

Our team are here to guide you through the complex process of intestacy.

Our experienced Wills, Trusts and Probate solicitors can take care of the whole process on your behalf, from applying for a Grant of Administration to making sure the estate is correctly distributed according to the legislation.

We offer fixed fees for cases where we are simply asked to assist with the application for the Grant.

If you require more extensive assistance, we’ll discuss the costs with you at a no-obligation meeting and can include fixed fees or an estimate range in our fee structures where appropriate.

If someone has died without a Will, it is important to seek legal advice as soon as possible. Contact our Wills, Trusts and Probate team today for compassionate guidance and support.

The period following a divorce or dissolution of a civil partnership can be fraught with uncertainties, particularly concerning your financial obligations, such as spousal maintenance.

The legal considerations surrounding spousal maintenance are complex, meaning that many divorcing couples are unclear about their obligations or entitlements post-separation.

What is spousal maintenance?

Spousal maintenance is financial support provided by one ex-partner to another after a divorce or dissolution of a civil partnership, aimed at helping the lower-earning or non-earning party adjust to new financial circumstances.

It varies from temporary support during legal proceedings to long-term post-divorce maintenance.

Eligibility depends on factors such as marriage length, financial needs, and earning capacities, with courts aiming for a fair resolution.

Key considerations for determining maintenance include:

• The standard of living during the marriage or partnership.
• Each party’s income, earning capacity, and financial resources.
• The financial needs and responsibilities of both parties.

The Court often aims for a “clean break” to encourage financial independence but may grant maintenance for a fixed period or indefinitely, based on age, presence of minor children, and time spent out of work for child-rearing.

Modifying spousal maintenance

Spousal maintenance is not set in stone and can be modified or terminated under certain conditions.

Significant changes in circumstances, such as a substantial increase or decrease in either party’s income, may warrant a review.

Parties seeking to alter maintenance terms must apply to the Court for a variation order.

What happens if one party fails to pay spousal maintenance?

If one party fails to pay spousal maintenance, the Court can enforce payment through measures like garnishing wages, seizing assets, or issuing an attachment of earnings order.

They may also place a charge against the debtor’s property.

Those facing genuine financial difficulties should seek to vary the maintenance order by demonstrating a change in circumstances, possibly leading to reduced payments or a temporary pause.

Consulting a family law solicitor is crucial for anyone struggling with maintenance payments as failure to comply can result in financial penalties and, in severe cases, imprisonment.

Spousal maintenance versus lump sum settlements

Choosing between spousal maintenance and a lump sum settlement often involves a detailed analysis of both parties’ current and future financial situations.

A lump sum settlement may be particularly attractive to those seeking closure and a desire to avoid future disputes related to payment amounts or durations.

However, it requires careful consideration of the recipient’s ability to manage and invest the lump sum wisely to provide for their future needs.

This is especially relevant where long-term financial security is a concern, and the recipient may not have the earning capacity to replenish spent funds.

Moreover, determining the appropriate amount for a lump sum settlement involves complex calculations that consider the present value of future maintenance payments, the life expectancy of both parties and potential changes in circumstances.

Remarriage and cohabitation

Remarriage of the recipient ends spousal maintenance, as the financial support role shifts to the new spouse, cancelling the former partner’s payment duties.

Cohabitation, however, does not automatically stop maintenance payments but may trigger a review to adjust terms based on the financial benefits of the new living situation.

Courts examine the cohabitation’s impact on the recipient’s finances, potentially modifying maintenance to align with the recipient’s current needs and the financial support provided by the cohabiting partner.

What is the best way to handle spousal maintenance?

Engaging a solicitor to help you manage your spousal maintenance obligations is usually the best approach.

Our expert family lawyers can offer invaluable guidance on understanding your legal rights and obligations, ensuring that any agreement or court order is fair and reflective of your circumstances.

We can also assist in negotiating maintenance payments, applying for variations in the maintenance order in light of changed circumstances, and representing your interests in court, if necessary.

Together, we’ll help you to achieve a resolution that safeguards your financial stability.

Don’t let spousal maintenance make you uneasy. Contact our family law team today for expert advice and guidance.

Did you know that nearly five billion people share their lives online?

From treasured photos and messages on social media to important documents and financial records, your digital presence forms a vital part of your life story.

Despite this, digital assets are still often overlooked in estate planning.

Without a digital estate plan, your loved ones may not be able to access or manage your online accounts and important digital assets.

That’s why we’ve launched our new Guide to Securing Your Online Life to help you find out more about our digital estate planning services.

Here’s what you need to know about digital estate planning and how you can implement it into your larger estate plan.

What is digital estate planning?

Digital estate planning, or digital asset management, sets out the digital assets you own and how you would like them to be distributed upon your death.

Unlike liquid assets, the monetary value of digital assets is not always immediately apparent.

Not all digital assets hold monetary value, but they may hold sentimental value.

The challenges of digital estate planning

Digital assets and the issues surrounding them are evolving faster than legislation. This means that there are several challenges involved with digital estate planning.

Digital assets are not currently defined in English law. Theoretically, they should be treated like any other form of property. However, there are key notable differences.

Unlike traditional assets, there is often no physical documentation that proves the deceased’s ownership of digital assets, therefore, it becomes necessary to access the deceased’s online accounts.

While physical assets such as properties or bank accounts are usually easily accessible to Executors, this is not always the case with digital assets.

Furthermore, under the Computer Misuse Act 1990, it is a criminal offence for anyone to gain unauthorised access to any computer device, including using another person’s password without their permission.

This can make accessing and distributing digital assets very difficult for Executors.

Although the Digital Devices (Access for Next of Kin) Bill was proposed in 2022 to grant a right of access to the digital devices of a deceased person to their next of kin, it only reached a second reading before the 2021-2022 session of Parliament was prorogued. At present, the Bill will make no further progress.

This is why it is important to consider how you wish to distribute your digital assets and how you will enable your intended beneficiaries to access them legally.

What you can do to prepare

Your first step should be to prepare an inventory of your digital assets, including relevant terms and conditions (such as deleting or preserving social media accounts) and any passwords needed to access these assets.

These should be stored an online encrypted and secure digital vault that can only be accessed by an appointed Executor upon presentation of your death certificate.

As a client of Palmers Solicitors, you have access to Zenplans, a digital estate vault that helps you securely organise all aspects of your digital life.

You can also utilise pre-planning tools, such as setting up Legacy Contacts, to help you manage your accounts after your death.

You must also make it clear in your Will that your Executor(s) are authorised to access your digital assets after your death. This will help to prevent them from falling foul of the Computer Misuse Act.

Secure your digital legacy with Palmers Solicitors

Digital estate planning is an essential part of your preparations for how your legacy will be managed after your death.

At Palmers Solicitors, we can help you keep up to date with the latest regulatory developments in digital estate planning and ensure that your overall estate plan includes your digital assets.

Our new resource, Your Digital Legacy: A Guide to Securing Your Online Life, explains how you can use Zenplans and pre-planning tools to ensure your digital legacy is left in safe hands.

Take control of your digital legacy today, get peace of mind and clarity tomorrow.

Secure your digital legacy today with Palmers. Download our guide to securing your online life.

Commercial landlord and tenant disputes can be tricky to navigate – and without expert legal advice, you risk leaving issues unresolved or taking action that could lead you to fall foul of the law.

The law is designed to protect both parties – and as a landlord, you must be aware of your obligations within the tenancy.

Failing to comply with these can lead to serious financial and sometimes even criminal penalties.

But what happens if your tenants fail to pay their rent or breach their obligations in the lease?

Commercial leases can be complex and if the terms of the lease are broken, by either the landlord or the tenant, this can lead to a protracted dispute which can be both stressful and costly and damaging to your business if taken to court.

That’s why it is important to explore alternative ways of resolving a dispute before taking legal action.

Alternative dispute resolution

Alternative dispute resolution (ADR) is a simpler and effective way to resolve problems and disputes where parties cannot reach agreement but wish to avoid Court proceedings.

ADR is increasing in popularity and the Civil Procedure Rules 1998, require parties to attempt to engage in ADR before proceedings are commenced or be ready to justify failure to do so, or be at receiving end of an adverse order to pay penalty costs for non-compliance.

ADR processes

There are two main categories of ADR:

• Imposed: The imposed ADR procedures occur when parties have agreed to resolve issues by ADR under the contract or because of membership of an organisation where there is a binding requirement for ADR resolution procedures.
• Voluntary: Voluntary procedures are where parties agree, often after finding themselves in a dispute, to use the process of ADR to explore opportunities to achieve a resolution.

The simplest form of ADR is usually ‘Without Prejudice’ negotiations between the parties. ‘Without Prejudice’ means that the parties can discuss the issues in dispute openly and freely with each other, in the knowledge that whatever they have discussed, is not disclosable to other parties and/or the Court and cannot be used against them to support or undermine either party’s position. It normally involves parties making offers of settlement.

Types of ADR procedures:

• Conciliation or mediation: Conciliation identifies what each party wants to achieve from a solution and helps them to achieve that aim by agreement. If successful, this process results in a solution acceptable to all parties. Mediation focuses on the problem and proposes alternatives for resolving the problem. Both are undertaken on a ‘Without Prejudice’ basis and involve the same privilege from disclosure as above. They are confidential and cannot be discussed openly. With both mediation and conciliation, a neutral third party will use skills to assist the parties to find an outcome to help them resolve the dispute and avoid Court proceedings. If either method is unsuccessful and agreement not reached, this does not prevent Court proceedings being commenced.
• Adjudication: An independent person examines the evidence of each party and makes a decision that will normally be binding on the parties. There may be an appeal process but this is subject to the type of adjudication used and will have limitations.
• Arbitration: Arbitration is a formal written only procedure. Most arbitration awards bind all parties. Overturning or altering an arbitration award may be limited to proving certain facts and grounds. The purpose is to achieve a commercial and swift resolution to the dispute to allow the parties to continue with their business.

An experienced solicitor can advise you on which ADR procedures are best for your specific circumstances.

Advantages of ADR

ADR presents several benefits to resolving the problem, for both you and your tenant.

Most importantly, ADR can be a lot less confrontational than Court proceedings. This helps to preserve a non-volatile, professional relationship between landlord and tenant once the dispute is resolved.

The process may be sufficient to resolve the entire dispute or certain aspects of it, reducing any later Court proceedings and making them less costly.

Additionally, most ADR is investigatory – the root of the problem is identified and the focus is on settlement rather than apportioning blame.

The ADR process discloses facts and evidence from each party, meaning all concerned have a greater understanding of the issues involved. This means any subsequent Court proceedings may be simpler, shorter and less costly.

The ADR procedure can also ensure confidentiality by preventing any party from referring to anything disclosed in the ADR that might be sensitive or damaging to either party.

Other benefits include:

• Privacy: ADR is private, thus avoiding adverse publicity that could damage your reputation.
• Affordability: The cost may be cheaper than Court proceedings.
• Determined process: The procedure for resolving the dispute, and the timescale for the procedure, can be fixed by reference to what the parties find convenient.
• Speed: it is a much quicker and faster process.

Finally, the range of achievable solutions from ADR is wider than Court proceedings.

Through ADR, you can reach a specific type of solution that both you and your tenant find acceptable, but which may not be possible from Court proceedings.

Disadvantages of ADR

While there are several benefits to pursuing ADR, there are risks that must be considered.

Crucially, ADR depends on co-operation. All parties have to participate.

If the time limit for making a Court claim is about to expire, ADR may not be appropriate. Unless proceedings are stayed or an agreement reached between the parties to extend the time for ADR to take place, the Court time limit will apply and the parties are forced to adhere to these strict deadlines.

A decision or award, if not complied with by either party, may still have to be enforced through the Courts once the ADR process is complete.

ADR will not be appropriate if you require immediate action to protect your property consisting of an injunction.

Applying for an interim injunction through the Court, might help you to temporarily ringfence your business interests while the substantive dispute awaits determination at trial or by settlement.

At Palmers, we can assist with different types of urgent injunctions which you may need to stop or prevent an action from occurring or to force another party to do something.

Commercial landlord-tenant dispute resolution with Palmers Solicitors

If you are facing a commercial leasehold dispute, it is important to seek legal advice as soon as possible. It is easy to carry out an act that might unwittingly prejudice your position and reduce options that might otherwise have been available to you.

At Palmers Solicitors, our property litigation experts can provide advice and practical support for commercial landlords involved in disputes with their tenants.

We will provide you with clear advice, specific to your situation, to help you understand your options and enable you to resolve the issue in a quick and cost-effective manner.

If you are facing a dispute with your tenant, it is important to act quickly. Contact us today for expert advice and guidance.

If you’re looking to develop and expand your business, you might be considering entering into a joint venture (JV).

JVs can be an effective way to maximise opportunity, minimise risk, and explore new markets.

However, without the right legal structures in place, JVs can quickly become a source of disputes, regulatory issues, and financial losses.

Therefore, it is essential to understand the advantages and disadvantages of entering into a JV before you make any decisions.

What are the advantages of joint ventures?

JVs provide a range of advantages to businesses.

• Shared resources and financial risk: By pooling resources and sharing risk, you can protect your interests and boost your chances of business success.
• Flexibility: A JV can manifest itself in several ways, including as a contractual agreement, a limited liability company, or a partnership. A limited company structure provides a clear well trodden governance structure and protects parties from personal liability, while a Limited Liability Partnership (LLP) can allow for tax efficiencies and maintains some liability protections.
• Tax optimisation: JVs can provide tax efficiencies, particularly in relation to Capital Gains Tax (CGT) and, in cases involving commercial property, Stamp Duty Land Tax (SDLT).

With a JV, you can combine each partner’s unique strengths and share expert knowledge to give your business the best chance of success.

What are the disadvantages of joint ventures?

Although JVs offer many advantages, they are by no means an easy route to business success.

JVs may fail due to clashing priorities, strategies, and corporate cultures.

Some of the issues involved in JVs arise around:

• Control and decision-making difficulties: Without clear governance structures, disputes can arise over everything from profit distribution to day-to-day property management.
• Exit strategies: If one party wishes to leave the JV, how will this be handled? Without a clear legal mechanism in place, disputes can lead to costly litigation.
• Regulatory compliance: If the JV results in market dominance that could be seen as anti-competitive, you risk breaching the Competition Act 1998.
• Tax liabilities: If commercial property is transferred between JV partners, SDLT and CGT may apply.

Without legal agreements and compliance with UK law, JVs can quickly become problematic.

Questions to ask before entering into a joint venture

Open communication and careful planning from the get-go will give your JV the best chance of success.

Before you decide whether or not to enter into a JV, you need to ask yourself – and your proposed partner – some questions.

Gaining clarity on your goals and intentions will help you make decisions in your best interests and ensure your JV has the best chance of success.

• Is your proposed JV partner suitable? You will need to conduct thorough due diligence to ensure that potential partners possess complementary skills, resources, and a similar corporate culture. Additionally, you should consider seeking a partner whose strengths fill gaps in your organisation.
• What’s your vision for the JV, and does your partner share it? All parties involved should make sure they have a shared vision for the partnership by defining clear, mutual objectives.
• How do you intend to work together? Not all JV partners work together in the same way. Some will share resources, while others keep them separate. Maybe you want to have a weekly catch-up with your partner over coffee, or perhaps you would prefer formal meetings once a month. Figuring out these arrangements early on will help to iron out any sticking points.
• How will you foster an environment of open communication? Open and honest communication is essential if JVs are to succeed. You should consider how you will create an environment where JV partners feel comfortable discussing concerns, sharing feedback, and resolving conflicts without receiving backlash.

A well-drafted Shareholders’ Agreement or Joint Venture Agreement will help outline voting rights, exit strategies, and profit allocation, as well as clearly define roles, responsibilities, and dispute resolution strategies.

This way, you can prevent common misunderstandings and significantly reduce the risk of disputes that could jeopardise the success of the JV.

To mitigate potential legal issues, our experts are able to draft and review your JV arrangements early on in the process.

At Palmers Solicitors, we have the knowledge and experience to protect your interests in the partnership and identify any unforeseen liabilities and legal issues.

How Palmers Solicitors can help with your joint venture

Entering a JV can be an exciting step forward for your business, but it must be handled with care to ensure that your goals aren’t derailed by disputes and legal issues.

At Palmers, our Corporate and Commercial law team have a wealth of experience in all business legal matters.

We can advise on structuring the JV and drafting the Shareholders’ or Joint Venture Agreement.

For tailored advice on entering into a joint venture, get in touch with our Corporate and Commercial Department today.