MORE than 70 per cent of people risk bequeathing big tax burdens to their loved ones because their wills are out of date, warn accountants.

"Our recent study revealed that only 29 per cent of those surveyed had reviewed the details of their wills during the past year," said Liz Brierley, a partner at Saffery Champness, Bournemouth.

"It is alarming to see that so few people review their wills on a regular basis.

"People tend to review their wills at major milestones - such as marriages, births or deaths - but personal and financial circumstances can change more frequently, and this should be reflected in the will."

Those who do not regularly update their will risk a higher inheritance tax bill being levied on their estate as their current financial and personal circumstances may not be accurately reflected in the bequests.

"Many may find will-planning a little morbid but an out-of-date will could be costly in terms of tax.

"It can also have serious implications for those left behind if the will has not been adjusted to reflect changes in personal circumstances.

"Good will planning incorporates all major financial and personal issues that a family will face. It is a very personal process, and great care should be taken to ensure that the final result accurately reflects the testator's wishes," she added.

SAFFERY CHAMPNESS RECOMMENDS

1. Undertake a thorough review. Evaluate your financial position and objectives.

2. Consider your partner's financial position. Minimising the tax paid on your partner's death is key - this is where the tax liability is likely to be the greatest.

3. Update your executors. Ensure that you are still content with your executors and that they are still happy to fulfil the role.

4. Plan for all scenarios, including the worst. What would happen if you and your partner were to die simultaneously?

5. Account for your current family circumstances. Mixed nationality or second/third marriages may add complications.

6. Review pensions and life insurance policies. It is standard practice for the entitlements to go to your surviving spouse but a 'letter of wishes' to the trustees of such funds may allow you to pass these assets directly to other family members.

7. Consider trusts. Review existing trust structures to ensure that they reflect current wishes.

8. Consult and instruct a trusted adviser. Ensure they are trustworthy and technically competent.

First published: October 11