Why should I get a Will?

Making a will is so important. A will is a legal document that ensures your estate is distributed amongst your selected beneficiaries. It is important to remember that if there is no will then the law states that you follow the intestacy rules. Intestacy rules follow a class of beneficiaries. These may not truly mirror the wishes of the deceased.

Below are a few reasons to make a will, especially after recently purchasing a property:

•  As a general rule, everyone that owns a property should have a Will to guarantee that the property will be inherited by the people you want to benefit when you are no longer around.
•  If you die without a Will, you are deemed to have died intestate and the intestacy rules will govern who will inherit your estate. This means your property may end up in the hands of people you did not want to benefit.
•     If you do have younger children, you can make provision for guardians that you wish to take care of them for peace of mind. Without this the decision may be left to the family courts.
•     If you are not married or in a civil partnership a Will will have to be needed especially if you are cohabiting. This ensures provisions are made for them following your death, as the intestacy rules do not consider unmarried partners. Without a will, an unmarried loved one may be left without any inheritance.
•  If you are married and have children from a previous marriage, you may wish to put in place a Will to ensure that certain assets for your children are protected.
•  If you are concerned that you may have to pay inheritance tax on your death, a Will is a useful tax planning tool. The intestacy rules are not the most tax efficient and you may find that significant parts of your wealth are lost to inheritance tax.
•  In your Will, you can specify the age at which you would like your children and grandchildren to inherit or even set up trusts for your children if you feel they are vulnerable or struggle with managing money. Without a Will, your children will inherit their share of your estate at 18.

Real Life Example

We always find that case studies are always more interesting than facts and so see below for an illustration of why putting in place a Will can be vital:

• Tom is a dentist and Tina is a vet and they are both in their early 30s. They both are busy with work and have not really given any thought to getting married or starting a family.
• Tom received a sizeable inheritance from his parents and he purchased a home in his sole name without a mortgage that he lives in with Tina.
• Sadly, before his 34th birthday, Tom is knocked over by a bus and dies instantly.
• Tom and Tina had talked about making Wills, but had never gotten around to doing it.
• Tom’s only surviving family is his older sister, Tamara. Tom was never close with Tamara growing up and Tina has only met her a handful of times

What are the implications that Tom has died not married to Tina and without a Will?

• Tom’s estate will be governed by the rules of intestacy. As his surviving sibling, Tamara is the one who will be entitled to act as administrator of Tom’s estate and will also be entitled to inherit everything Tom had, including the property that he lived in with Tina. Tamara intends to sell Tom’s property and move abroad, leaving Tina without a home to live in.
• Whilst Tina was Tom’s long-term partner, they were not married and therefore she will not be accounted for under the rules of intestacy and will not receive anything from Tom’s estate. If Tom had put in place a Will, he could have chosen to include Tina and ensured provision was made for her following his death.
• Tina can make a claim against Tom’s estate, but this can be a long-winded process and who wants to go through the added stress and pressure of this when mourning a loved one.
• Not only this, but Tom’s total estate exceeds the inheritance tax threshold and there is inheritance tax to pay in the sum of £56,000. This could have been avoided if Tom and Tina had sought legal advice in relation to their Wills and could have been informed of the availability of the spouse exemption if they married.

Don’t be like Tom and Tina and get advice about putting in place a Will!