In short, your will tells everyone what should happen to your money, possessions and property after you die (all these things together are called your ‘estate’). If you choose to not leave a will, the law will decide how your estate is passed on – and this might not be in line with your wishes. Having a will means that you will also not pay any more inheritance tax than you need to – Wills are a relatively straightforward legal document but it is important that you have the document formally witnessed and signed to ensure that it is legally valid. Why is a Will Needed? A will simply outlines your wishes for the distribution of your estate and makes things significantly easier for your loved ones. There are some practical considerations however:
- Don’t delay – It is easy and quick to make a will – it will save your family unnecessary distress at an already difficult time.
- A will can help reduce the amount of Inheritance Tax that might be payable on the value of the property and money you leave behind.
- If you don’t write a will, everything you own will be shared out in a standard way as defined by the law – which isn’t always the way you might want.
- A will also makes it easier to pass on to those outside of your immediate family.
- A will makes it much easier for your family or friends to sort everything out when you pass away – without a will the process can be more time consuming and stressful.
- Your will inform your loved ones about your key wishes:
- Who will be in control of organising your estate and following the instructions you leave in your will – this person is called your ‘executor’, and you can name more than one person if you want to.
- Who should have your money, property and possessions when you die.
Ensuring Your Will is ValidIn terms of the practicalities, your will doesn’t have to be on special paper or use a lot of legal language and will be valid so long as it:
- States how your estate should be shared out when you pass away.
- Was made when you were able to make your own decisions and weren’t placed under any external pressure about who to leave things to.
- Is signed and dated by you in the presence of two adult, independent witnesses, and then signed by the two witnesses in your presence – the witnesses can’t be people who are going to inherit anything from you (or their husband/wife or civil partner.
How to Make a WillIf your family is fairly small and you wish to leave everything to them, making your will is straightforward. If your situation however is more complicated – for example, if you have a second family or you want to leave money, items and gifts to lots of people – you’ll need to plan more carefully and possibly take further advice. The process however is straightforward:
- Step 1 – Make a plan and think about who you wish to leave what and to whom.
- Step 2 – Once a plan is made, consider talking to your family and set out what is to be left to whom in the will.
- Step 3 – Write your will. There are a number of options based upon your circumstances and costs vary between £140 and £600 as to whether you select a simple will or a specialist will (incurs tax planning and offshore expertise). You can buy a will template in most high street stationers.
- All personal property and belongings of the person who has died.
- The first £270,000 of the estate.
- Half of the remaining estate.