Beyond the Headlines: The Myth of the "Penniless" Celebrity’s Will

Kirsti Harvey, Blandy & Blandy

Last week, headlines such as ‘BBC Presenter Died Penniless’ and ‘BBC Newsreader Left Wife and Family Tiny Sum of Money in Will’ circulated online, sparking public interest and often, misunderstanding. 

Sadly, the tabloid press frequently publishes such articles, predicated on the notion that despite their fame and successful careers, well-known individuals surprisingly leave comparatively modest sums to their beneficiaries upon their death – in this case, a reported £49,000.

Beyond being unnecessarily intrusive, these articles are almost invariably inaccurate and terribly misleading. The reality of Estate planning and the resulting tax implications is far more complex than a single figure in a Will or Grant of Probate suggests. Several key legal and financial principles are often overlooked, leading to these unhelpful portrayals.

Assets Outside the Will: Joint Ownership and Trusts

When a Grant of Probate is obtained by the Executors, the Will becomes a public document and the gross and net value of the Estate are stated on the Grant. However, the figure reported as the individual’s "Estate" often doesn't tell the whole story of a person's wealth.

• Jointly Owned Property: While property owned outright by the deceased individual will form part of their Estate for Probate purposes, property held jointly as "joint tenants," is treated differently. In such cases, ownership typically passes automatically to the surviving joint owner, by what is known as the "survivorship," irrespective of the Will. This means that a family home worth hundreds of thousands or even millions of pounds might transfer directly to a spouse without ever going through probate as part of the deceased's personal Estate, thus not appearing in the widely reported figures.
• Trusts: Another crucial, yet frequently misunderstood, element is the role of various types of Trusts. Assets placed into certain Trusts pass outside the terms of the Will and therefore do not form part of the figures on the Grant of Probate. This is because these assets are no longer legally owned by or directly benefiting the deceased individual at the time of death. They could potentially form part of their taxable Estate, but not the Estate passing under the Will and therefore the Grant of Probate.

Individuals, especially those with significant wealth, often use Trusts as sophisticated tools for estate planning, wealth preservation, and to provide for future generations, all while potentially mitigating IHT liabilities. Again, these assets are often omitted from media reports, which focus solely on the administered Will.

Other Factors

Several other factors can contribute to the misleading nature of such headlines:

• Lifetime Gifts: Individuals may have made substantial gifts to family members or charities during their lifetime. Regardless of when the gifts were made and whether they are subject to the IHT rules, these would not form part of the Deceased’s Estate passing under the terms of the Will and would not be included in the figures on the Grant of Probate. These lifetime transfers are rarely, if ever, considered in tabloid reports.
• Pension Funds: Many pension schemes, particularly self-invested personal pensions (SIPPs) or occupational schemes, allow individuals to nominate beneficiaries directly. These nominated beneficiaries receive the pension fund outside of the deceased's Will and, depending on the type of pension and the age of death, can be entirely free of IHT. Although, following the October 2024 budget, this is due to change in April 2027 and inherited pension pots will be subject to IHT. A substantial pension pot could be passed on without ever appearing in the deceased's "Estate" figure.
• Life Insurance Policies: Similar to pensions, life insurance policies are often written "in trust" or have nominated beneficiaries, meaning the payout goes directly to the designated individuals and does not form part of the deceased's estate for probate or IHT purposes. A large payout could provide significant financial security to beneficiaries, even if the "Estate" itself or the legacies included in the Will appear modest.
• Debts and Liabilities: The "Estate" figures included on the Grant of Probate are both the gross and net figures, after deduction of any liabilities at the date of death. It is possible that a significant portion of a person's gross assets might be used to pay off liabilities, leaving a smaller net Estate for distribution.
• Confidentiality and Privacy: For many individuals, particularly those in the public eye, privacy regarding their financial affairs is paramount. Estate planning often involves strategies to keep details of a person’s wealth private, and the figures reported in the press often represent only the tip of a person's true financial legacy.

Inheritance Tax

The value of the Estate for IHT purposes is declared to HMRC and this information remains confidential and is not available to the public. The figures included in the Grant of Probate only consider the assets passing under the terms of the Will. Although the Will and Grant of Probate could provide an indication as to the value of the Estate for IHT purposes, it does not consider the assets passing outside of the Will as referred to above. Therefore, this does not usually give a full picture of the Deceased’s IHT liability, especially if the individual had taken Estate planning advice during their lifetime.  

Our leading Wills, Probate, Tax & Trusts team can advise on all aspects of Wills and Estate planning, as well as probate and Estate administration. Please get in touch if you would like to discuss your individual situation, needs and aims with a member of our team.

Blandy & Blandy is a leading Thames Valley law firm with offices in Wokingham, Henley-on-Thames and Reading. For further information or legal advice, please call 0118 951 6888 or visit www.blandy.co.uk.