Many adults in the UK are “misguided” in their knowledge about estate planning, wills, and the laws of succession, according to research from Canada Life.

It found that 38 per cent of adults incorrectly believed that they would avoid probate if all of an individual’s assets were passed on to their spouse.

The firm noted that, with solely owned or personal assets, a legal personal representative (LPR) will take over ownership initially and may need to obtain probate.

Canada Life’s research also found that a third (33 per cent) of UK adults believed that everything automatically passes on to their loved ones when they die if they do not have a will.

Where assets are not subject to a trust, the law will decide how those assets are allocated, consistent with specific rules, and depending on where they live in the country.

Looking at people’s understanding of the will-writing process, Canada Life found that 25 per cent incorrectly believed it was a one-time process, while 17 per cent believed if someone marries or re-marries, they do not need to update their will.

Previous research from Canada Life revealed that 44 per cent of UK adults have not written a will, nor were they in the process of doing so.

Finally, more than one in six (16 per cent) adults surveyed incorrectly believed that a cohabiting partner would inherit their deceased partner’s estate, even if they were not married.

Commenting on the findings, Canada Life technical specialist – tax, trusts, and estate planning, Liz Hardie, said: “Whilst people generally seem familiar with some estate planning laws, there are still gaps in understanding. The easiest way to avoid potential pitfalls and ensure that your estate is distributed according to your wishes is to write a will and keep it up to date.

“If an individual dies intestate - without a valid will in place – their estate will be divided up according to the laws of succession, meaning the assets may not go to those they desire.

“Making wrongful assumptions about these laws, may lead to loved ones facing delays and longer probate, potentially higher inheritance tax bills, in addition to disputes amongst the presumed beneficiaries as well.”

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