Making a Will for most people may be lurking somewhere near the bottom of your financial to-do-list and haven?t got round to it yet, but going without making a Will one is a risky game.
Dying intestate ? without a will ? means that you have no say in what happens to your assets, including whether or not your hard-earned cash is absorbed into the Treasury?s coffers. If you want to provide for your loved ones, making a Will is a must and failing to not write a Will could mean your only legacy is a huge financial mess.
It is a mistake to assume that if you die without making a Will, your loved ones will be automatically provided for. On the contrary, they may face months or even years of stress and expense while they try to sort out your affairs.
Unmarried couples have to be particularly careful because they have no rights to inherit without a Will and any children will inherit everything at age 18, potentially leaving your partner with nothing.
Even married couples only automatically inherit up to the first ?250,000 of a spouse?s assets if they have children, or ?450,000 if they have none. Even worse, if both you and your partner die together, it could be down to the courts to decide who looks after your children if you fail to make provision for their guardianship in a Will.
Ultimately, a Will gives you the chance to make decisions as to how your money is spent whether it?s for funeral arrangements, charitable donations or setting up trusts for your children.
It?s also an important tool in managing any inheritance tax (IHT) liability. This 40 per cent charge will affect all those with total assets worth more than ?325,000. Married couples and civil partners are allowed to pass on unlimited amounts of money or property to each other tax-free and any unused allowance can be transferred to the surviving partner which, in the current tax year, means they could leave up to ?650,000 jointly without having to foot a tax bill.
As with most personal finance topics, your situation will differ from that of your friends and relatives, so make sure you make the right decision for you, there is no one size fits all when it comes to making a Will.
Be cautious of Will writers
There are various options and prices when it comes to making your Will, whether it?s going to your bank or building society, using do-it-yourself Will writing kits, or paying out for specialist Will writers and solicitors, which can cost as much as ?600 for complicated legacies.
Be on your guard for cowboy Will writers operating without insurance or training. In comparison, solicitors are obliged to take out insurance and are regulated by the Solicitors Regulation Authority.
Be particularly vigilant if any firms, banks or solicitors appoint themselves as sole or joint executor as this means they will be responsible for administering the estate when you die. Some banks and other firms offer cheap or even free Will writing services, but appoint themselves as executors and charge bereaved relatives excessive fees of up to 4.5 per cent on the entire value of the estate.
In reality, many people nominate friends or family who can pay for further professional assistance when, and if, necessary.
If you use a solicitor ensure he or she is a member of a professional body such as Society of Trust and Estate Practitioners (STEP) or the Law Society.
If you use a Will writer, they should belong to the Institute of Professional Will Writers or the Society of Will Writers and have indemnity insurance, but the entry requirements for these organisations are fairly low.
Times to make a Will
Milestones such as getting married, buying a new home and having children or grandchildren are the perfect opportunity to review and amend your Will.
If you want to change your Will, you can amend it by either adding a supplement to the original, known as a codicil, which must be witnessed, or by drawing up a new one and destroying the original. If you change a Will, the new one should start with a clause stating that it ?revokes all previous Wills?.
Don?t undo all your hard work by failing to get the details right. Your Will must be signed and witnessed or it will be invalid and you must have two witnesses (one in Scotland) who should be in the same room when the Will is signed and must have nothing to benefit from the Will, otherwise, again, you will invalidate the Will.
After you have made a Will you can look after it yourself, remember to tell your executors where it is.
Related posts:
- The Importance Of Making A Will, Even In Tough Economic Times
- Unmarried Couples Must Recognise Importance Of Writing a Will
- Keep Your Will Safe
- 5 Reasons To Get Solicitor Approval When Writing a Will
- 63% of Britons don?t have a Will
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