Have you been putting off making a will? You’re not alone. Many people delay this crucial task, but life events often remind us of its importance. When you’re ready to plan for the future, understanding the ins and outs of will-making is essential, and following changes announced in the recent Autumn Budget, there has never been a more crucial time to get your personal affairs in order.
We’ve asked Rachel Watkinson, Managing Director of Estate Planning, to walk us through the who, what, why, and where of creating a will, ensuring you’re well-informed about this vital aspect of estate planning.
What is a will?
So, let’s take it back to basics. A will is a legal document in which the testator or testatrix declares their intentions regarding the distribution of their estate after death. It’s a powerful tool that allows you to have control over the assets in your estate and ensure your wishes are respected.
Who should make a will?
The short answer is everyone over 18 with the mental capacity to do so, but different life stages bring different reasons for creating a will. Parents may be driven by the need to appoint guardians for young children. Those about to marry, already married, or going through a divorce should consider how these life changes affect their estate planning.
Unmarried individuals need to ensure their partners are provided for, as intestacy laws may not provide for them as intended. The financially fortunate face more complex issues, with a greater chance of estate disputes and the need for inheritance tax mitigation. Those with dysfunctional, or blended families can use a will to navigate complex family dynamics. Even the average person benefits from the peace of mind a well-crafted will provides.
The recent budget and the resulting drastic changes to IHT for business owners and farmers has made it crucial for those that may already have a will in place to review them to ensure that their will maximises the reliefs that are available and mitigates IHT so far as possible.
What does a will usually include?
A typical will includes several key components. It appoints executors to manage the estate and guardians for any minor children. Funeral wishes can be expressed, and specific gifts or references to a letter of wishes can be included. Cash gifts are often specified, followed by instructions for dividing the “residuary estate” – this being everything that remains after debts and specific bequests are settled. Substitute beneficiaries are usually named in case original beneficiaries predecease the testator.
More complex wills might incorporate trusts. A life interest trust can protect against remarriage of a surviving spouse or safeguard some assets if the survivor needs long-term care. Discretionary trusts are commonly used to protect vulnerable beneficiaries, such as those on means-tested benefits or incapable of managing funds. They can also offer some protection for beneficiary’s facing relationship difficulties, allow flexibility where there’s potential inequality among beneficiaries, or help manage business or farm assets on a long term basis.
Why make a will?
It allows you to be specific about your wishes, avoiding the potential unfairness of intestacy laws, which are often outdated and may not reflect modern family structures. A will makes the probate process easier for your loved ones and ensures recognition of unmarried partners and step-relatives who might otherwise be overlooked by intestacy rules. Above all else it creates certainty, guidance and peace of mind at a very difficult time for your loved ones.
When should I make a will?
The best time to make a will is sooner rather than later. Don’t put it off – a good will can futureproof your estate to a degree so don’t be tempted to wait for certain life events to occur. If you already have a will, it’s wise to review it every 5 years or whenever you experience a significant change in circumstances- whether that is within the family or financial. Life is unpredictable, and having an up-to-date will ensures your current wishes are respected.
The do’s and don’ts of will-making
When it comes to creating a will, it’s crucial to avoid the DIY approach. Remember, you get what you pay for, and a poorly drafted will can be worse than not having one at all. Be wary of online questionnaires or services that may not capture the nuances of your situation. Professional help is invaluable because you don’t know what you don’t know – an experienced solicitor can spot potential issues and opportunities you might be unaware of.
Do take advantage of charitable will-writing services or events like Free Wills Month that offer access to professional help at a reduced cost or even for free. These can be excellent opportunities to get your will drafted by a qualified solicitor. Before your appointment, prepare by gathering necessary identification, as well as names and addresses of people you may want to include as beneficiaries, executors, or guardians. This preparation will make the process smoother and ensure you don’t forget any important details.
Here to help
Making a will is a crucial step in securing and protecting your assets in the most appropriate way for loved ones, whilst also ensuring assets are left as tax efficiently as possible.
If you’re looking to make a will, our Wills and Estate Planning team are here to help safeguard your assets, protect you and your family and ensure your loved ones are taken care of. To speak to one of our experts, please fill out the form below and one of our team will be in touch shortly.
