If you have a valid will ~ Congratulations! Did you know you’re in the minority?

It is estimated that 67% (2/3rds!) of us don’t have a will!. Let’s be honest, we all know it is important to make a Will, but it seems it’s something we either keep putting off or keep making excuses.

No one likes to think about what happens when they die. But if we don’t, it can cause arguments, distress and hardship for our families, not the ideal legacy for a family in mourning. Making a Will is the only way to ensure that your wishes are carried out after your death.

What happens if you don’t have a Will?

If you have not made a valid Will, your property will pass according to the Law of Intestacy. This can take a lot longer to finalise than if you had made a Will. During this time your beneficiaries may not be able to draw any money from your estate. The following diagram (known as the Law of Succession) courtesy of the Daily Telegraph outlines what happens to your estate if you don’t have a valid will -

Eternal Growth are unable to provide you with advice on wills and estate planning. We can however introduce you to a specialist who can provide you with advice in this area. Please complete the enquiry form below and we will ensure they call you to arrange an appointment to discuss the options appropriate to you.

Food for Thought!

IF YOU ARE SINGLE
you will want your estate divided amongst friends, relatives and charities of your choosing and in the proportions you want.

IF YOU ARE MARRIED
don't assume "my other half will get everything". Brothers and sisters or parents may have a claim. Often you children have a right to part of your estate. If you are living as a couple but not officially married, you may be treated as a single person and a surviving partner may get nothing at all. One thing you can be certain of - there will be argument and dispute at a time when the family should be coping with the loss of a loved one.

IF YOU ARE A PARENT
you should consider who would look after your children in the event of your death. This is particularly important in the case of one parent families or unmarried parents living together. A valid Will nominating guardian’s is invaluable in such cases. If no one knows what you would have wanted, the Court will decide on the future of your children, and it may not be what your or your children would have wished.

IF YOU ARE RETIRED
maybe you made a Will a long time ago. It probably needs updating to include additional grandchildren or deletion of persons you no longer feel you wish to leave anything to.

Wills ~ Questions & Answers

• Q. Can I make my own Will
• Q. Do I need a solicitor to act as executor?
• Q. Can children under 18 inherit?
• Q. I’m divorced - what will happen with my existing will?
• Q. Will I have to pay Inheritance Tax (IHT)?
• Q. Do married couples need two Wills?

Q. Can I make my own Will?

A. Yes, you can. But there are significant risks in doing so - which you will not be around to sort out. It could mean substantial legal fees to put things right - quite apart from the upset and confusion it could cause those you leave behind. A Will that is not clear under the law is open to challenge and your wishes may be overruled and if it’s not written under the correct procedures it can be rendered invalid.When making your own Will you may overlook some possibilities and unforeseen changes in circumstances.

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Q. Do I need a solicitor to act as executor?

A. No, but it is wise to appoint one alongside a friend or relative. This enables the burden of the work to be shared with a professional who can advise. It also ensures that, if the executor is unable to carry out their duties for any reason, there is the support that is needed. A Solicitor will charge for their advice and work and their fees will come out of your Estate.

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Q. Can children under 18 inherit?

A. Children cannot inherit until they reach the age of 18; below this age, the funds are held in Trust. If you think 18 is too young for your children to inherit a large sum of money, within a Will, you can specify that they do not receive the capital sum until a later age. They will, however, be entitled to receive any income from the trust fund as soon as they reach 18. Apart from this, the Trustees decide what income and/or capital can be used for the benefit of the children e.g school fees.

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Q. I’m divorced - what will happen with my existing will?

A. Getting divorced does not cancel a Will, but a gift to a divorced spouse lapses, unless a contrary intention appears in the Will.

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Q. Will I have to pay Inheritance Tax (IHT)?

A. If your estate is worth more than £300,000, (this is the current limit for nil tax) it will be subject to inheritance tax
The first £300,000 is tax free under current allowances. The remainder will be taxed at 40% (e.g. if you have an estate worth £400,000 you will pay tax on £100,000 which equates to £40,000).
A married couple with sufficient assets can save a considerable amount of tax by both setting up, in their Wills a Discretionary Trust of a sum of money equivalent to the Nil Rate Band personal tax allowance, in favour of their spouse and children.

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Q. Do married couples need two Wills?

A. Both of you need to make a Will. A pair of similar Wills are called ‘mirror Wills’. Getting married or remarried cancels a previous Will unless the Will expressly states otherwise.

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Free Initial Consultation
If you would like a Free initial consultation with a specialist adviser to discuss wills and any estate planning needs, call us on 01522 540555 or simply fill in the enquiry form

The Financial Services Authority does not regulate Will Writing Activities