8 reasons why you should be making a Will today

Lawpack on April 30, 2020

Wills – Your Questions Answered

An at-a-glance guide to making a Will, and the risks you run if you haven’t made a Will.

1. If you don’t make a will, you cannot control who will inherit your money and property.

If you die without making a Will, your property will be distributed according to law (the law of ‘intestacy’), which is likely to be against your personal wishes and the people you want to inherit your possessions may not benefit. By making a Will, you can determine precisely who will inherit your property and let your loved ones know that you have considered their needs.

The law of intestacy is complex, but, broadly speaking, the bulk of your estate will go to your spouse (including a registered civil partner) or, if none, to your children (whether or not they are adults) and, if none, to other blood relatives.

The effect of the rules depends partly on whether you have children and your marital status. If you’re married with no children, your surviving spouse/civil partner will inherit everything.

But if you’re married with children, when you die without a Will less than you expect may go to your spouse. Your surviving spouse will receive £250,000, plus your personal belongings, and then half of the estate automatically. Your children will then inherit the remaining half share of the estate (or on trust until they reach the age of 18).

So it’s always prudent to have a valid will rather than rely on the intestacy rules.

Find out the laws on intestacy here.

2. If you’re not married and haven’t made a Will, your partner may receive nothing.

If you’re not married but are living with your partner and you want them to inherit your estate, it’s particularly important that you make a will. This is because the rules of intestacy make no provision for cohabitation or unmarried partners (other than registered civil partners). If you died without making a Will, your partner may not be legally entitled to anything from your estate.

Find out about the cohabitation risk you take if you’re part of an unmarried couple and haven’t made a will.

3. By making a Will you can determine who will handle your affairs after your death.

If you die without making a Will, you die ‘intestate’. This means that the management of your affairs is then placed in the hands of administrators who are appointed by the court. The administrators distribute your estate according to the rules of intestacy (see above).

4. By making a Will you can name a guardian for your children.

If you have minor children, you can name a guardian to care for them in the event of them being left without any parents. Since a guardian takes the place of a parent, making a will gives you the option of choosing someone you believe will offer the best care for your children if you’re not around.

5. It’s important to make a new Will if you get married or divorced.

Once you have made your Will, changes to your circumstances (e.g. marriage, separation, divorce, having a child or moving house) can make parts of the Will invalid or unfair and open to a successful claim under the Inheritance Act. You should, therefore, review your Will regularly to reflect any major life changes, preferably every five years.

Find out why you should make a Will if you’re getting divorced.

6. You can save Inheritance Tax.

Making a Will gives you the opportunity of saving Inheritance Tax liability. This is particularly important if you have substantial assets.

Find out more about Inheritance Tax here.

7. You must check your Will regularly.

It’s also possible to die partially intestate. This occurs if you fail to deal with all of your property in your Will or if a particular someone who was due to inherit in your Will dies before you or if you divorce and your ex-spouse’s legacy becomes invalid as a result. It’s therefore important to keep your Will up to date.

Is it time you updated your Will? You can make a Will with Lawpack today.

8. You can express your preferences for what happens after your death.

By making a will, you can express your preferences for burial or cremation and for donating organs or your entire body for medical purposes.

You can find out more about how you can protect your loved ones by making a Will here, or you can stop worrying and make a Will today here.

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Other information

How to leave gifts in your Will

Lawpack on March 27, 2020

When making a Will you can leave individual items to certain people by naming them in your Will. Often people who are making a Will have items of value (financial or sentimental) that they would like to leave as a gift for a specific person: in the legal jargon associated with Will-writing these are called ‘specific gifts’.

Any property that you don’t give as a specific gift and which is not used to pay debts, legacies, tax or the expenses of administering your estate is known in legal jargon associated with Will-writing as part of the ‘residue’ of your estate – see our ‘making a will’ article called ‘How to leave the residue of your estate’.

When making a Will you should consider any specific gifts carefully. Are there family heirlooms that would have a special meaning to someone? Do you want to leave a particular item in your Will to a nephew, for example? If you are a mother, do you want to leave your jewellery to your daughter? A specific gift in your Will may not necessarily have monetary importance, but it may have personal significance.

In the case of specific gifts, always indicate in your Will clearly who is to receive each item of property. Give their names in full and identify each item of property clearly.

Try to avoid making gifts in your Will which have been sold or have changed form before your death. Particular difficulties can arise with, for example, gifts of shares or bank accounts.

Here are some examples from DIY Wills:

‘I give my stamp collection to my son, Alexander Guy Ross.’

or

‘I give my Rolex watch to my son, James Ross.’

Sometimes a particular item of property that you wish to leave in your Will is charged with payment of a debt or other liability. For example, a house is subject to a mortgage in favour of the bank.

The widest term for such charges is ‘encumbrances’. If a case of this sort arises when you are making your Will, you should clearly indicate whether the person who receives the property takes it subject to the encumbrance, or free from the encumbrance, in which case the encumbrance will be paid out of the residue of the estate.

It’s also possible to make a gift of money in a Will. This is usually called a ‘legacy’. Again, you should clearly indicate in your will the amount you wish to give and the person who is to receive it.

Here are some examples from DIY Wills:

‘I give to my son Alexander Guy Ross the sum of £100.’

‘I give the sum of £100 to each of my grandchildren who shall be living as at the date of my death.’

‘I give the sum of £1,000 to be divided equally between all my grandchildren who are living at the date of my death.;

‘I give the sum of £1,000 to Macmillan Cancer Relief Fund.’

Digital assets

Most people have assets in digital form, whether it’s the contents of their laptops, data held in ‘the Cloud’, or accounts held with the likes of as Facebook and Twitter. Such assets can cause headaches on death. The reality is that with many of these sites being only one generation old, many of these issues are unresolved and there is a limit to what can be done by way of a Will. Find out to what extent you can provide for digital assets in your Will, with our last Will & Testament Kit.

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How to name guardians for your children

Lawpack on March 27, 2020

Making a Will is not just about passing on property. If you have children, you can use your Will to ensure that they are looked after by who you wish in the event of your death.

A guardian is someone you appoint to act in your place as a parent. Guardians are given both the responsibility of caring for, and the powers to make decisions about, your children (i.e. parental responsibility). You can appoint a guardian by using Lawpack’s Last Will & Testament Kit.

Guardians are usually appointed to look after children in the event of the parents’ death, but it’s not a requirement of them being a guardian, as their task is to make decisions about where the children live, with whom, and what school they go to, etc.

The guardian is often, but doesn’t have to be, the same person as the executor and trustee of your Will. Their responsibilities are different: an executor deals with, and has responsibility for, the financial arrangements, whereas a guardian makes decisions about the wellbeing of the children.

If the guardian isn’t the same as the executor, they should be able to co-operate with the executor of the Will.

The appointment of a guardian is only effective if both parents (or all persons with parental responsibility) are no longer alive.

If you have minor children, you should name a guardian to care for them in the event of them being left without any parents.

Minor children are under the age of 18 in England, Wales and Northern Ireland, and under the age of 16 under Scottish law.

Since a guardian takes the place of a parent, you should choose someone in your Will who can offer the best care for your children, such as a close relative who is willing to accept the responsibility.

The guardian can be (but need not be) one of your executors.

Always check with your proposed guardian in advance to be certain that they are willing to act as a guardian before making your Will.

There are complications in making a Will which names a guardian if:

  • you were not married to the other parent when the child was born;
  • you and the other parent have already been or are (after making the will) divorced from each other; or
  • a court order already exists, or is made in the future, relating to where the child is to live or to parental responsibility for the child.

In these cases, we advise that you take legal advice.

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