Why Make A Will
October 29th 2008
Making a Will may be something that has never occurred to you. Maybe you even avoid thinking about it because it is something you can sort out at a later date.
The fact is that everyone should make a Will regardless of the value of their assets, age or state of health. The reality is that in the U.K. today, only 30% of people take this simple but vital step.
It is only by making a Will that you are able to ensure that your estate is divided according to your wishes.
If you die without making a Will it is the law, not you, which directs how your estate should be divided and the rules on this have not been changed for many years. This may not be what you want. For example, a wife would not necessarily be as well provided for as her husband would wish, if he died without having made a Will. Contrary to popular belief, under the law everything does not necessarily automatically pass to a wife when her husband dies or vice versa.
Apart from taking care of the important question of who is to benefit, a Will makes it much easier for those who are left to deal with your affairs. This applies equally to large and small estates.
A correctly drawn Will can help in many ways and in an effort to dispel some of the common misconceptions surrounding wills the following are frequently asked questions and answers on the subject.
Frequently asked questions and answers
Q In what way for a married couple or unmarried partners living together does not making a Will affect my inheritance tax liability?
A Making a Will ensures you obtain the maximum inheritance tax saving by using spouse exemptions to the full. For unmarried partners Wills can be drafted in such a way that they will ensure the full benefit of the nil rate band for inheritance tax is secured.
Q If I am married, will everything pass to my spouse on my death?
A No. In fact not making a Will in this situation could be a disaster as part of your estate will pass to your nearest blood relatives.
Q If I leave everything to my spouse do my children automatically inherit my estate on her death?
A No. The way to ensure your children are protected against remarriage of
your spouse/partner is to draft a Will including a trust for the lifetime of your
spouse/partner.
Q If I have stepchildren who I treat as my children will my estate automatically pass to them if I am the surviving partner and I have no Will (intestate)?
A No. This should be covered in your Will. Only blood relatives inherit on intestacy.
Q Can I deal with a foreign property in my Will?
A You can but you should also make a Will in the country where the property is situated. Huge problems always occur when there is no Will in either country.
Q Which is more expensive to administer, an estate with a Will or an intestate estate?
A Generally on an intestacy as there are potential problems in tracing beneficiaries, documents etc.
Q Is it beneficial to have all the assets of a couple in joint names?
A In some ways yes but this does not preserve your assets for the next generation in the case of a remarriage of the survivor.
Q If I have young children and have no Will, can I assume that my nearest relatives or close friends will automatically become guardians?
A No. It is vital that firstly you ask someone to take on this very responsible and potentially burdensome task and then you must appoint them as guardians in your Will.
Q Do I need professional people as executors?
A No. You can appoint family or friends or if no-one is willing or able then a solicitor may be appointed.
Q How would I ensure my Will is found after my death?
A You should advise your family and executors or both that you have made a Will and who made it, and where it is kept. We advise original Wills should be retained by a solicitor. You will have a copy of the Will in a safe place at home which will incorporate the solicitor’s details.
Q When I have made a Will do I not need to bother looking at it again?
A No. You should review it every year to consider the effect of any new legislation and any changes you personally may want to make to cover your changed circumstances.
If you would like to find out more about arranging a will please call Mark Chandler on 0113 287 8231 or email him at
mc@prosperis.co.uk
