Research from Which? Shows that 61% of people have no will in place.

That’s a lot of people who are at risk of dying with nothing in place to specify what should happen to their belongings.

What happens if you die without a will?

If you die without a will in place, or it has become invalid since it was last updated, your estate will be distributed according to the laws of intestacy. These are a set of rules which determine who gets your money, property and assets. We’re not going to go into the details of who might get what, but suffice to say, without having your wishes in writing, the resulting decisions made on your behalf are unlikely to reflect what you would have done yourself.

This will not only subject your loved ones to a potentially lengthy and ultimately, disappointing process, but is likely to add a great deal of stress to an already emotionally difficult time.

What does a will do?

You probably know that your will goes some way toward determining who gets your property, money and assets when you die. But you may not be aware that a will can tell those left behind so much more about your intentions, including:

  • Who will act as the executor of your estate: This person will be responsible for distributing your estate according to your wishes and carrying out any requests you may have left. They will also oversee the balancing of your estate; paying any debts and organising the physical distribution of assets. You can appoint up to four executors, but they will need to make joint decisions, so choose wisely and consult them before making a commitment on their behalf.
  • Who should take care of your dependents: If you have children or have dependents who live with you and rely on you for their care needs, you can express where they should live and who should be responsible for them in the event of your death. Once again, this is a big commitment, so you will need to discuss your wishes with those you wish to nominate, to ensure that they have the facilities, finances and ability to offer the necessary care to your dependents.
  • How specific items are passed on: When you die, you will not just be leaving money and property behind. You may also have sentimental items or belongings which you would like to see passed onto specific individuals. By including this information in your will, the chances of your wishes being followed will increase.
  • What happens to your pets: It’s not just children and dependents who need somewhere to go when you are no longer around. You can also make a note of how you intend for your pets to be cared for if they are left behind. You will need to make sure that anybody you nominate to take responsibility for your pets is prepared and able to do so.
  • Whether you want to leave money to someone outside of your family: The laws of intestacy will mainly distribute your assets to people you are directly related to. However, you may want to leave money or property to someone outside of your family tree, in which case you will need to have those wishes in writing within your will.
  • Whether you want to leave money to charity: Leaving a gift to charity in your will is a great way to honour a cause you care about. It can also have Inheritance Tax benefits, but to access them, the intention to make the donation will need to be recorded.
  • Funeral arrangements: If you have any requests regarding your send-off, including how your body is used and the type of funeral you have, you can add these into your will.

The benefits of making a will

Done correctly, your will can have a positive impact on both your loved ones’ and the causes you care about.

If your estate is worth more than £325,000 when you die, your beneficiaries could find themselves paying an Inheritance Tax (IHT) bill.

The good news is that this is not necessary, and that there are many ways to reduce the value of your estate and make sure that your loved ones receive the full benefit of everything left to them.

One of the easiest ways to do this is to leave money to charity, something which just 19% of over-65s say they plan to do, according to Which?. However, it is tax-efficient, and donations left in a will are immediately considered to be outside of your estate for IHT purposes, which means that donations are both generous, and can reduce the amount of IHT your loved ones will need to pay.

I already have a will

That’s great. But is it up to date? And, are you sure that it reflects your current wishes?

Many people are unaware that certain events can render a will invalid, including getting married. However, aside from being invalid, there are numerous situations which should prompt you to check and update your wishes, including:

  • The birth of a child or grandchild
  • Getting married or divorced
  • The death of a family member or beneficiary
  • If you inherit or receive money or assets
  • If you decide to change or update your beneficiaries or distribution
  • If an organisation you have left money or property to goes out of business

Financial planning can help to put this into context and make sure that your affairs are in order. For more information, or to explore the financial benefits of making a will, feel free to get in touch with us on 01664 77 88 99.