Where there’s a will, there’s a way…

A will is therefore one of the most important documents that you will ever sign, yet over two thirds of the adult population of the UK are said not to have made a valid will.

In this article we discuss the importance of a will and of obtaining specialist advice when making or reviewing a will.

When might I need to review my will?

There are several life stages at which it is advisable to review your will. These include:

• If you have a significant change of financial circumstances – inheritance, retirement or purchase or sale of a business asset.
• On the birth of grandchildren or death of key people within the will.
• On marriage (when existing will would be revoked) or divorce.
• If there is significant changes to tax legislation.
• At least every 3-5 years to ensure the will remains up to date.

The importance of specialist advice

We have all seen advertisements encouraging us to make a will at what seems to be attractively low rates and fees. Often these are placed by unregulated will writers or those without proper specialist knowledge.

It is therefore crucial that you seek professional advice from an inheritance tax (IHT) specialist when you are looking to set up your will. This will allow you to review your personal circumstances and take into account all legitimate inheritance tax planning opportunities.

Our tax team have significant experience in advising on inheritance tax and would welcome the opportunity to review your circumstances and discuss your will planning.

Why should I make a will?

If you are in the two thirds of UK adults without a will, here are some of the reasons why you should consider addressing this:

• Peace of mind – Making a will should give you peace of mind that on your death the distribution of your estate will be dealt with in accordance with your wishes.
• Your will appoints Executors and Trustees – These are the people who will have legal authority and responsibility for carrying out your wishes. If your assets are complicated this can be quite an onerous task covering a whole range of matters. You can appoint anyone as your Executor or Trustee including professionals, beneficiaries or family members.
• Cremation or burial wishes – it is very helpful for your relatives and Executors to know your wished and for these to be recorded to save anxiety about whether or not the right action has been taken. If you wish to be buried, it is a good idea to arrange for the Grave Deed to be placed with the will.
• Guardians for your loved ones – You can appoint guardians for your children in the event that you die before they are 18.
• Charitable giving – You can make cash gifts to charities or individual stating the age at which they are to inherit.
• Gifting – You can make gifts of specific items or property. Gifts of this nature are a specialist area and there may be inheritance tax planning benefits which Anne and Oscar, with specialist advice, can assist you.
• Foreign property – If you own foreign property, specialist advice will be necessary, and we can arrange this through our Praxity alliance on your behalf.
• Drafting a trust – You can decide whether to leave your estate on trust or outright to beneficiaries. Trust drafting requires an in-depth knowledge of the area.
• Online assets – Nowadays most people have assets held via on-line providers and it is important to make provision for these assets as well.

What if I don’t make a will?

If you die without making a will then assets are distributed according to the rules of intestacy. This means partners may get nothing, and even a spouse may not get a significant slice of the estate.

• Your assets will pass in accordance to the law, which does not necessarily pass your assets to those whom you consider closest to you.
• A common law spouse cannot benefit directly from your estate.
• You will not pass any assets to people who are not directly related to you, including step-children and your favourite charities.
• If you are separated but not divorced, your estranged spouse could still inherit and be responsible for administering your estate.
• You will have no say in who will look after your children if they are under 18 when you die.
• You will have no control over the age at which your beneficiaries will inherit.
• There could be increased cost and delay in administering your estate.