Why make a will?

In this latest newsletter I am delighted to welcome Paul Stanford, principle of Stanford Legal Services as a guest writer to talk about the importance of making a will and the potential pitfalls of not making a will.

We are constantly being told by the media, press, friends, family, and professionals that you should make a Will and most people understand this; however, many people question why and therefore don’t make one.

Here are some of the key reasons why you really should make a Will.

No Will

·??????Let’s flip things around and look at what happens if you don’t make a Will. If you die without making a Will, then this is termed an intestate estate. Your estate (everything you own) is then dealt with under the ‘Rules of Intestacy’ which means you then have no control over how your estate is divided and can produce undesirable results.

·??????It also sets a hierarchy of who can handle your financial affairs after death, and that can lead to problems if the person is not suitable because of age, health, geographical location, or you just don’t get on!?

·??????Unmarried partners, friends, carers, and charities are not entitled to inherit anything from you under the Rules of Intestacy

·???????It’s also important to understand the Rules of Intestacy are not designed to achieve the most financially beneficial outcome for your beneficiaries. They are not set up to save exposure to tax.

·???????If you run out of relatives, then ultimately The Crown will end up inheriting your estate

Living with a partner

If you live with your partner and you are not Married or in a Civil Partnership, then your partner will not be entitled to anything from you if you do not have a Will. This can be extremely distressing and could mean your partner having to move out of the family home when you die. At the very least it creates uncertainty with the potential for family arguments and disputes.

Children

If you have children, then you should appoint guardians who will be granted the legal right to look after them if both parents died before they reached age 18. If you do not have a Will, then your children could be placed into care and end up with family members being appointed to look after them who you may not have wanted.

Inheritance Tax

If a person leaves ￡100,000 (less inheritance tax) to loved ones, and they in turn leave the proceeds they receive (less inheritance tax) to their loved ones; then all that is left is ￡36,000! … ￡64,000 of it has been swallowed up in inheritance tax charges. A professionally drafted Will can help reduce inheritance tax for future generations.

Pets

By making a Will you decide who will look after your beloved pets and be sure they will be well cared for by the person of your choice. Even if there is no suitable person to take on the role then you can appoint a charity to care for them instead

Protecting your loved one’s inheritance

If you die and your partner remarries then your children could become dis-inherited. Adding a trust to your Will can safeguard your children’s future inheritance not only against sideways dis-inheritance but also from bankruptcy, divorce, and care fees.

Getting Divorced or Married?

·???????Contrary to common belief if you get divorced then your Will does not get revoked; however, if you get married it does! Therefore, if you are getting divorced or have recently married then you should make a new Will

·??????If you are already married and don’t have a Will, then beware your partner may not inherit everything. Under the current intestacy rules, it depends on the size of your estate and whether you have any children. Intestacy causes delays and complexity. For families with children, the division of assets can create co-ownership problems and an Inheritance Tax liability. Making a Will protects your family from this.

Disabled or vulnerable family members

If a member of your family is disabled or vulnerable, then you should include a special trust in your Will to ensure they are not only adequately provided for but also their benefits are not affected by the inheritance they receive from you

Executors and trustees

A Will enables you to choose who you would want to act in these important roles. Without a Will then this will be down to who is the first to successfully apply for the Grant of Representation and this may not be someone you would trust with your loved one’s inheritance.

The bottom line is the only way to give certainty that your wishes are carried out and your loved ones provided for on your death is to have a professionally drafted Will put in place for you. For the sake of a few hundred pounds why risk leaving it to chance? Without a Will, the Government will decide what happens to your estate – not you. Is that really what you want to happen?

Paul Stanford is the principal of Stanford Legal Services,

STEP Affiliate, and full Member of the Society of Will Writers

01903 340186

[email protected]

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The above is designed to give a general understanding of the topic and should not be construed as advice.

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