A YouGov survey completed last year revealed that nearly two-thirds of the British adult population do not have a will. This had led to sharp rises in intestate queries – the process of determining how someone’s assets should be distributed after their death.
In this article we want to highlight 3 important things you should know about making a will:
- When you should make a will – many people put it off much longer than they should.
- What happens if you die intestate – who will get your belongings if you die without a will in place.
- How to make a ‘Simple Will’ – it’s really not as complicated as you may think.
When Do You Need to Make a Will?
When we become adults we typically start working and will hopefully build up some savings. At some stage we think about buying a house and purchasing items to furnish our home. Your property, possessions, savings and investments all form part of what is known as your estate. Every adult should have a will to detail how their estate will be divided up when they die. Whilst it’s important for all adults to have a will, it becomes even more important in the following circumstances:
- When you have children or step-children under the age of 18, or other dependent adults in your care.
- If you are one half of an unmarried couple – the law does not give your common law partner any claim to your assets when you die therefore they need to be officially named as a beneficiary in your will.
- When you have savings, investments and insurance policies in place.
- When you own property and perhaps a joint mortgage.
- If you own a business.
- If you have complex financial affairs.
- If you are divorced – to determine whether or not you want your ex-partner to be a beneficiary in your will or to remove him/her if they were listed in a previous version.
- To reduce potential inheritance tax bills imposed on the recipients of your estate during your lifetime – in its simplest form inheritance tax is taxed at a rate of 40% on assets worth over £325,000 subject to various reliefs and measures that are not the topic of this article but for which we can offer specialist advice as a member of the Society of Trusts and Estates Practitioners STEP.
What Happens if You Die Without Making a Will?
If you die without a will in place, things can get complicated for the people left behind to sort out your affairs. Intestacy, the name given to the rules of law designed to deal with situations where a will doesn’t exist, can take months or years to resolve. The law applies strict rules with regard to how your wealth will be distributed and the results of which may not be how you would have wanted. If you don’t make a will before you die you are giving up the right to decide what happens to your own possessions potentially leaving your loved ones facing much stress and hardship. This is why it’s important for all adults to take control of their financial affairs while they are alive and able to do so.
In cases where the estate is worth £250,000 or less it is common for everything to be awarded to the individual’s husband, wife or civil partner. Recent statistics show that over the last decade there has been a significant rise in the number of co-habiting couples who remain unmarried. The law at present does not recognise this person as being eligible to be awarded your estate. If you are unmarried or in a civil partnership but in a long-term relationship and co-habiting, it’s particularly important to discuss and plan your will with you partner to ensure that both of you will be protected if anything were to happen to the other.
A ‘Simple Will’ is Sufficient for Most People
A simple will is a legal document which can be created for individuals with relatively small estates and those with less complex financial affairs. A simple will document typically includes the following details:
- Your name, address and any other details relating to your identity.
- A clear statement or heading to confirm that the document is your will.
- The name of the executor – the person you wish to appoint to ensure your wishes are carried out. It can also be a good idea to appoint a back-up executor in case the first named person is unable to fulfil these duties.
- The names of any beneficiaries – people and organisations such as charities.
- Any specific instructions in relation to who will assume ownership of any assets such as property, savings and possessions after you die.
- The names of those who will inherit anything not specifically mentioned – the residue.
- Details of who will become the legal guardian(s) of your children, if they are under 18 and who will be responsible for managing their financial affairs.
If you need to draft a will for yourself, mutual wills for you and your partner, or simply need a professional eye to review an existing will, we can help. Please contact our specialist Wills, Trusts and Estate Planning department Luke Curran & Co. Solicitors on 028 3026 7134 or email us to arrange an appointment.
