|
WILLS - QUESTIONS AND ANSWERS
A Will is a document which states what you want to happen to your money and personal possessions, and who you wish to sort things out on your death. You can also appoint guardians to care for your children and specify any funeral wishes.
Only 1 in 3 people under the age of 45 and half of those over 45 have made a Will. Many people fail to make a Will because they assume incorrectly that everything will pass to their partner on their death. By failing to make a Will, the law dictates who is entitled to receive your money and it may not be what you would wish.
Why Should I Make a Will?
There are several very important reasons for making a Will:
- You ensure that the people you wish to receive your money, property and personal possessions on your death do so. If you do not make a Will then the Intestacy Provisions will apply instead, as follows:
- If you are living with someone but are not married or have a registered Civil Partnership (for same sex couples), then the estate will not automatically pass to your partner on your death. There is no such legal status as Common Law Husband or Wife. If you die in quick succession it may mean that your estate passes to your partners family. Moreover if you are married to or civil partners with someone else, they would be entitled to receive part of your estate instead.
- If you are married or have a registered Civil Partnership and your estate is over 125,000 and you have children, then your husband/wife/civil partner receives your personal possessions and the first 125,000 of your estate. Your children will then receive half of what is left over and your husband/wife/civil partner has only an interest during their lifetime in the remaining half. That may mean your husband/wife/civil partner does not inherit your share in your house.
- If you are married and your estate is over 200,000 and you do not have children, then your husband/wife/civil partner receives your personal possessions and the first 200,000. The remainder of your estate passes to your parents, brothers and sisters or to your nieces and nephews.
- If you are unmarried, your estate passes to your nearest blood relatives, who may be distant.
- You can choose who you wish to administer your estate (your Executor). If you die without a Will, then the law chooses instead. It may not be the same person you would want, for example, you may feel that your partner would be too distressed to deal with your estate and you would rather appoint another person or a professional Executor instead.
- If you have children, a Will can be used to safeguard their interests by appointing suitable Guardians to care for them on your death. This avoids any conflict within a family as your wishes will be known. It also shows your children that you care enough to have thought about who you would want to look after them if you were to die.
- If you have personal possessions of sentimental or monetary value, you can state who you want to receive them on your death.
- If your estate is over the Inheritance Tax threshold (285,000 since April 2006), it is possible to make provision in your Will to avoid Inheritance Tax being paid out on your death. Any assets in excess of the 285,000 may be subject to Inheritance Tax at the rate of 40%, unless specific exemptions apply.
- If you own a business you can ensure that it continues to run efficiently upon your death. You can decide whether the business should be sold or passed onto a beneficiary.
- If you have any strong wishes concerning your funeral, they can be referred to in your Will, although you should always make certain that your family are aware of your wishes too.
- If you have a vulnerable adult who you wish to benefit from your Will, their share of your money can be placed in trust to safeguard their interests.
Why Should I Make a Will Now?
It is important you make a Will now as none of us knows what the future holds. If you die suddenly the Intestacy Provisions set out above will apply. Leaving a Will until you become ill or older could be too late as you will need to have sufficient understanding of the Will to be able to sign it.
Why Should I Make a Will When I Dont Have Anything to Leave?
Many of us believe ourselves to have little worth leaving on our deaths. It is a sad fact that most people are worth more when they are dead through house ownership, life insurance policies, pension funds, in-service death benefits, etc.
Additionally, a Will makes it much easier to deal with your affairs when you die. In addition to providing clarity to your family, they will be able to deal with your affairs much more easily. A Will provides authority to your Executors to deal with your estate immediately you have died. Without a Will the legal authority is obtained at a much later stage and your Administrators (the people who will deal with your estate if you die without a Will), will only have very limited authority to sort out your affairs until they have authority from the Probate Registry.
Why Should I Use a Firm of Solicitors to Make a Will?
While it is not legally necessary to use a firm of solicitors to make a Will, it is advisable. Although many people think that a home-made Will saves money, the reality is that home made Wills often do not carry out the testators wishes and cost more money in the long run. This is often because provision is not made in the event that one of the beneficiaries or the Executor dies, the wording used is incorrect or ambiguous, or because they have not been signed correctly.
It is often a source of distress to grieving relatives that the loved ones wishes cannot be carried out or there are complications in doing so. Solicitors make much more money from a home-made Will than a professionally drafted one because of the additional work involved in correcting problems!
|