When should I write/update my will?

Once you’ve made a Will, the temptation is to file it somewhere safe (having let your loved ones know where, of course) and to just forget about it. Circumstances change though - and so should your Will. 

Here are 7 potential changes in circumstances that we advise you remain mindful of. If any happen to you, or to someone who stands to inherit from your estate, you need to revisit your Will to ensure it still protects your wishes….

1. Getting married (or remarried)

If you are getting married you need to make a Will.

Most married people opt for Mirror Wills. Mirror Wills are the perfect way to protect the estate of a couple. They enable you and your partner to specify the people you would like to benefit from your estate after you die.

Without a Will:

• Unless you hold your property as Joint Tenants, the courts will decide who inherits your home using the Intestacy Rules. This means your husband or wife (but not your common law partner) will get the first ￡400k plus interest in the remainder for life, with it passing to your children on death.

With a Will:

• It is possible to leave your husband or wife the right to live in the property for their lifetime (or until they remarry or move in with another partner), ultimately leaving your property to your children or other family members

2. Having children, stepchildren, grandchildren or step-grandchildren

If you are going to have (or already have) children you need a Will to ensure they are looked after by your choice of legal guardians should you die before they are 18. 

Many parents and grandparents also choose to protect children from inheriting wealth before they are at an age where they are likely to be responsible enough to know how to best use it by stating in their Will, e.g., that their inheritance is to be held in a Trust until they are 18 (or 21), or by even stating what, specifically, the inheritance can (and can not) be used for.

Did you know that ...

• Guardianship of children whose births were registered before December 2003, whose father was not married to their mother yet is named on the Birth Certificate, will not automatically be given to the father?
• If you die without a Will, the responsibility for your children will not automatically pass to your family members?
• If you die without a Will, the court will appoint someone to deal with your estate. This can delay your relatives receiving their inheritance. It may mean it will not be allocated fairly, or how you wish. It may cause further distress to your loved ones at a time when they are already overpowered by their grief?

It’s not just when a new baby is coming into your family that you need to revisit your Will though. It could be that you, or your child is remarrying, bringing new stepchildren or step-grandchildren into your family. Many people revise their Wills accordingly to make it very clear, e.g., who has the right to live in the family home and who inherits what when the time comes.

3. Getting divorced

If you're getting divorced, or are divorced, you need to review your estate plan.

At the very least, you will need a new Will.

WHAT ARE THE RISKS OF NOT RE-WRITING MY WILL IF I AM GETTING DIVORCED?

Did you know that...

• Whilst you are in the process of getting divorced, your husband or wife may still receive everything under the rules of intestacy, if you don't have a Will?
• If you are still Joint Tenants on your property deeds, regardless of what you write in your Will, the property will pass directly to your former husband or wife?
• If you are Tenants in Common, your property will pass to the named beneficiaries on your Will?
• Without a Will, should your former husband or wife become unable to care for your children after your death, the courts will have no idea who you would have wanted to become their legal Guardians?

DO I NEED ANYTHING ELSE OTHER THAN A NEW WILL IF I AM GETTING DIVORCED?

If you have an estate plan, it is a good idea to review it. If you do not, it is a good time to research how planning your estate might benefit yourself and your loved ones. In the mean time here is a useful link to the Citizen's Advice Bureau's advice on ending a marriage.

4. Buying a home

If you own a property or are about to buy one, you need a Will. Property is the single biggest asset in most people's estates. It is also their most vulnerable.

Did you know...

• If you own a property and die without a Will, it will move through the intestacy table and could end up with someone who you do not wish to benefit?
• If you have a mortgage on a property and die without a Will, the court may force your family from their home in order to pay off any debts and Inheritance Tax?

WHAT HAPPENS TO MY PROPERTY IF I DIE WITHOUT A WILL?

If you die without a Will, find out how the courts will share your property.

Did you know?

• Protective Will Property Trusts and Family Asset Trusts are two common ways to ensure that the people you want to inherit your property do, and that your family is able to continue living in it.

5. Inheriting from someone else’s estate

If you have inherited some money, taking a little bit of time to work out how best to use it makes sense. This includes writing a Will (or updating a Will).

6. Setting up a business

If you run a business or hold a directorship in a business, at the very least, you need a Will and a Business LPA. You will also need Co-Directors and Shareholders to make a Will and a Business LPA.

WHY DO I NEED A WILL AND A BUSINESS LPA IF I RUN A BUSINESS?

If you run a business or hold a directorship in a business, you need a Will and a Business LPA because recent changes in legislation and case law mean it is now almost impossible to remove a Company Director who has lost mental capacity. Would you want your business to be run by someone who is unable to make logical decisions?

WHAT ARE THE RISKS OF NOT HAVING A WILL AND BUSINESS LPA IF I RUN A BUSINESS?

Given the potential risk to Directors and their families from being sued by Co-directors and Shareholders for having not made sufficient provision, it is now vital that everyone who runs a business has a LPA dealing specifically with their business affairs.

Although the legislation covers specifically Company Directors, should a case come before the courts concerning either a Sole Trader or a Partnership, then the courts are likely to apply the same principles. 

Did you know??

• Without a business LPA, it is almost impossible to remove a Company Director who has lost mental capacity.

7. Changes in inheritance tax law

Tax laws are always changing and promises (or threats) made in manifestos sometimes come to bear. If you do not have a solicitor advising you, it is always worth keeping an eye on inheritance tax law to ensure you are aware of any potential benefits that could be gained by changing your Will.

If you would like a new Will or free Will review to identify any pitfalls or areas that need updating in your existing Will please contact Ian at Honey Legal to arrange an appointment:

Email: [email protected]

Direct Mobile: 07745522292