Why it is important to have a valid will
Having a will gives you the power to decide who your assets pass on to on your death. Most wills are straightforward and inexpensive to prepare but it is important to use a reputable and qualified practitioner as a badly drafted will can have unintended consequences that may lead to difficulties for your loved ones after you pass away.
Here are just some of the reasons you should be making will:
To avoid the intestacy rules
If you die without making a valid will, you will have no control over who will inherit what you own. Intestacy rules will determine ultimately to whom your assets will pass, depending how much you own and which of your relatives (if any) is still living. Spouses may not receive everything and charities, friends and unmarried partners will definitely receive nothing.
A will allows you to choose who will benefit and what they will get.
To appoint guardians for children
If you don’t make a will and you are a parent of young children, then you will have no control over who looks after them should anything happen to you. In such circumstances, the courts will appoint someone on your behalf – someone that you may not have chosen.
A will allows you to appoint guardians of your choice who will look after your children until they reach the age of eighteen.
To ensure children are provided for financially
With a will you can make plans to provide for their future financially. For example, you may wish to consider setting up a trust for your children so you can control when your children receive the money and what it gets used for.
To appoint executors and trustees
Within your will, you can name one or more executors and trustees who will be in charge for carrying out your wishes.
Executors deal with the administration of your estate. There is often a great deal of work involved and is a position of responsibility. It is important that competent and trustworthy executors are appointed.
Trustees are the persons who will manage any property for the beneficiaries under the terms of any trusts and in accordance with the law. Again, it is important that competent and trustworthy trustees are chosen.
To avoid paying more tax than necessary
A will can help reduce the amount of inheritance tax that might be payable on the value of the property and money you leave behind.
To provide asset protection
It is often better to place assets into a trust than giving them to a beneficiary outright. For example, a beneficiary may be disabled, not able to manage money well, may get divorced or be in receipt of means tested benefits. A trust provides flexibility, control, and often, tax efficiency.
For example, if you have property in your name, you can give someone the right to benefit from it for a certain amount of time and then for it to go to someone else.
To reduce the chance of a dispute
With a professionally drafted and well documented will, your estate can be distributed with less likelihood of a dispute.
Who should write your will
There is a wide variety of choice. However, not every solicitor is a specialist and not every will-writer is regulated.
Working with a full member of STEP will ensure your adviser has the expertise, integrity and knowledge to provide a high level of service.
More about STEP can be found here.
For further information
Please contact us if you require any further information or would like to arrange a consultation to discuss making a will.