Why Wills are important

Many people overlook making a Will, others prefer not to think about what will happen when they die. Both are understandable, but can lead to major problems.

Someone who dies without a Will is called ‘intestate’. There are clearly defined rules as to how the Estate is shared out in such cases, but it may bear little or no relation to what the deceased would have wished.

Wills are important for everyone, but especially for those who are not legally married or who support children outside marriage. They also give the opportunity to express wishes about such matters as cremation, although these are not legally binding.

Don’t leave them in the lurch

Without a will, you may be placing an unnecessary burden on your loved ones. At your death, they will have to handle your personal affairs.

Your Will is a critical tool for making sure your spouse and your children will be provided for properly. They may need the assets in your estate to preserve their customary lifestyle.

Without a Will your assets may be delayed, or even prevented, from reaching those who most need them.

Many families have some children who will need more of the inheritance than others, but it is decisions like these that can only be implemented with a Will.
For example, some children are much better able to care for themselves than others and when it comes to planning your Will you may wish to leave more to your handicapped son than to your daughter, who is a successful physician.

Despite the need for a Will to carry out your wishes, a thoughtful Will reduces the risk of dissension among surviving loved ones. There are many heart-wrenched stories about brothers and sisters who fought and argued over their inheritance.

Planning your Will

Although we don’t like to think about it, death or mental incapacity may strike at any time, leaving you no opportunity for planning your affairs.

When it comes to getting your Will prepared, there is no time like the present. Best of all, once you get it all done you will have the peace of mind of knowing that you have placed your personal affairs in order.

Many people with Wills have not kept them up-to-date. An out-of-date Will may direct your assets to people you would not intentionally select, such as former spouses or distant relatives. You may inadvertently leave significant assets to the heirs of deceased beneficiaries.

Leaving a legacy

If you have been blessed with good fortune in life, a charitable bequest is an excellent way to share your blessings with others.

With a charitable bequest, you can leave a portion of your estate to an organisation and any other worthy charities you support.

Inheritance Tax (IHT) and your Will

IHT is payable on the taxable value of your estate, including property, above the £285,000 threshold, IHT is then payable at 40 per cent on any amount you leave above this.

You only have to worry about paying IHT on a gift if the legacy is paid before tax. Often, the estate pays the tax, but if there is not enough money to cover the tax once legacies have been paid, you may end up with a bill.

John Riches at STEP says more than one million Wills will have to be re-written to ensure spouses are not taxed on the death of their partner if they are left assets in trust. “Even relatively simple wills have to be rewritten where they leave assets to children older than 18,” says Riches.

As well as making a Will, you can use a family trust to pass on your assets in the way you want to. You can provide in your Will for specific assets to pass into a trust or for a trust to start once the estate is finalised.
You can also use a trust to look after assets you want to pass on beneficiaries who can’t immediately manage their own affairs, either because of their age or a disability.