If making a Will is something you’ve been putting off or just not got around to yet, here are 7 compelling reasons to make it a priority for 2022.
Who needs a Will?
If you
- Get married, get divorced, remarry
- Live with someone
- Have children or stepchildren
- Don’t have children
- Own property, money, shares or other valuable assets
- Own a business…
…you should make a Will and also ensure it is kept up to date.
As you can see, the list above covers most adults’ circumstances but, nonetheless, a shocking 2/3 of UK adults do not have a Will or other estate plan in place.
What happens if you die without a Will?
Most people believe their estate will automatically pass to their loved ones when they die, and that their children will ultimately inherit. But your loved ones could be left with nothing unless you have the right plans in place.
We have seen first-hand the devastation that can be caused to families when a loved one dies without a Will.
And, sadly, it’s too late to fix your affairs once you’re gone.
Here are a few of the most important reasons why you should set your wishes out legally in a Will.
1. To ensure your children receive the inheritance you wish to leave them
When you die without a Will, your estate is dealt with under the intestacy rules. These state that the estate passes firstly to the surviving spouse or civil partner, and then onto your children after the surviving spouse’s death. However, all too often, the inheritance is directed away from the children by a process termed ‘sideways disinheritance’. The most common example would be where the surviving spouse or partner later remarries: on their death, the estate would then pass on the new spouse and potentially never reach your children.
The only way to protect against this is to have an effective estate plan that includes both a Will and putting assets into a trust for your children in the future.
2. To protect your partner if you’re not married
Contrary to widely-held belief, there is no such thing as ‘common law marriage’ and unmarried partners are not entitled to inherit anything from your estate, unless specifically stated in your Will. This applies regardless of how long you’ve been together or if you have children.
Learn more about this here: The Myth of Common Law Marriage
If the family home is owned in your name, your unmarried partner would not automatically inherit the property and they could lose their home. However, it is possible to leave them a share of the property or a right to reside in the home, when you make a Will.
3. To create a legal Will after getting married or remarrying
When you get married or remarry, your existing Will automatically becomes void in England and Wales. If you don’t make a new Will, your estate could end up divided between your new spouse and children from a previous marriage. The rules are different in Scotland, where the old Will would still be considered valid.
Wherever you reside, if you want your new spouse to inherit all or part of your estate, you must express your wishes legally in a Will.
In contrast, getting divorced does not make a Will invalid – meaning that your ex-partner could still be a beneficiary of your estate.
To avoid potential stress and family rifts in the future, it’s essential to review your Will whenever your circumstances change.
4. To name your children’s guardian
In our experience, this is an area that is most difficult to think about: Who would look after your dependents if both parents/carers were to die before they turned 18? Making a Will is your opportunity to choose who their legal guardians would be should the worst happen. Without a Will, the decision could be made in the family courts and the appointed guardians may not be the people you would have chosen.
5. To prevent serious family disputes
If there is no Will or your Will is out of date – and you didn’t make your wishes completely clear whilst still alive – the process of dividing up the estate can cause major disagreements and tension.
The process of executing the estate is made much simpler, quicker and less stressful if there is a Will in place.
6. To avoid paying more Inheritance Tax than you have to
With some forward-planning it is possible to mitigate the amount of Inheritance Tax that must be paid on your estate when you die. For example, assets left to a spouse or civil partner are exempt from Inheritance Tax. We can advise you on the most tax-efficient way to structure your Will.
7. To appoint executors for your estate
Your executors are persons responsible for carrying out your final wishes. When you make a Will you will choose and name the persons (at least two) who you would like – and who have agreed – to carry out the task.
Learn more about the responsibilities of being an executor and how to choose the right people here: Who should you appoint as executor of your Will?
Arrange a free Will review consultation today
Take the first step toward protecting your estate and your loved ones’ financial security by arranging a FREE Will consultation with our Client Relationship Manager, Sharon Rigden.
If you already have a Will, you can use your free consultation time to have it reviewed to make sure it is valid and structured in the best way. Please email Sharon Rigden or call 01772 431233.