Please note: this article applies to residents of England, Wales and
Northern Ireland and is provided for general information only. It does
not constitute financial advice.
It's not something that anyone likes to think about, but deciding what
happens to your estate when you die is crucially necessary for ensuring
that your loved ones are looked after when you're gone and that your
assets are distributed as you would have wished.
Many individuals think that wills are only necessary for individuals with a great
deal of wealth, but this isn't the case. There are certain laws
governing how a person's estate is divided if they die intestate
(i.e. without a will), which might not be what you would expect or
intend. For example, if you're not married or in a civil partnership,
even if you co-habit with your partner, they will not be entitled to
inherit anything from you unless you specifically mention them in your
will. Even if you are married, without children, your spouse will not
inherit your entire estate other living relatives such as your
parents and siblings will be entitled to a share. Also, if your
circumstances change, for example if you get married, divorced or
remarried or have children, this could make your estate more
complicated to settle. Another necessary point to bear in mind is that
if you don't have a will, you won't have a named executor to carry out
the administration of your estate and the responsibility will fall upon
your beneficiaries, whom you may deem undesirable to handle your affairs.
Making a will has other advantages too planning your estate and who
will inherit may assist you to minimize the impact of the inheritance tax
laws.
To make a will, you must be 18 years of age or older. You must be
considered to be of sound mind and it should be written without
pressure from any other party. A will must be recorded in writing, and
it needs to be signed by yourself in the presence of two witnesses, who
must also sign. Beneficiaries of the will and married partners of
beneficiaries cannot act as witnesses. If they do, the will won't be
invalidated, but their inheritance will be. The completed and signed
will can be kept anywhere you want at home, at your bank, at your
solicitor's office, at a Probate Sub-registry, a District Registry or
the Family Division Registry of the High Court.
The enormous question for many individuals is whether it's necessary to employ a
solicitor to set up a will. The reply is no, but it is certainly
recommended, particularly if your estate and personal circumstances are
rather complex. It's also easy to make seemingly simple mistakes which
could end up having significant consequences. Common errors are not
understanding what has to be done to make a will legally valid,
changing the will without having it signed by witnesses, failing to
make alterations in the event of a change in personal circumstances,
forgetting about parts of your estate, or not taking into account that
the beneficiary might die before inheriting.
Solicitor charges for setting up a will can vary between solicitors and
will also depend on how complex your estate is. If you're a member of a
trade union, your membership may entitle you to a free will-writing
service or free legal advice. You can bring down costs by considering
in advance what your assets are and to whom you would like to leave
them whether family, friends or charity. This will include property,
possessions, bank accounts, insurance policies, pensions and shares.
Also think about who you want to appoint as executor of your estate and
who you want to look after your children should you die before they
reach the age of 18.
You should certainly consider using a solicitor if you have complicated
personal circumstances, for example if you live with somebody who isn't
your spouse or civil partner, if you have a dependant who is unable to
look after themselves, if you have a business or own property abroad,
if you don't live in the UK or aren't a UK citizen, or if you have lots
of family members who may make claims on your estate, such as
ex-spouses or children from previous marriages.
If you don't want to use a solicitor, it's possible to purchase DIY
will kits from many high street stationers and bookshops or online
providers, which will provide basic guidance.
Remember to make amendments your will any time you have a change in
circumstances such as marriage, remarriage, divorce, civil partnership
or the birth or adoption of children. You'll need to be careful in how
you amend your will to ensure that it remains valid. It's not possible
to write alterations onto an existing will. Instead you must either
write what's known as a codicil or draw up a new will entirely. A
codicil is like an addendum to your will. It doesn't replace the
original will, but makes alterations to one or more of the sections.
Only the person who created the original will can make a codicil, and
it must be signed and witnessed in the same way as the original will
(although not necessarily by the same witnesses). It's only suitable
for making small and uncomplicated changes such as increasing or
decreasing the amount of money left to a beneficiary, adding a new beneficiary or changing the
executor. You can add as many codicils as you want to your will, but if
you have lots of amendments or complex changes it's best to start
afresh with a new will altogether. When you draw up your new will, you
should insert a clause at the beginning to explain that this new will
revokes all previous wills and codicils. Your old will is no longer
valid after you do this (and have your new will signed and witnessed),
and you should therefore destroy it. You must destroy it yourself too,
or have it destroyed in your presence otherwise it may still be
considered valid.
Your will may be challenged if a person feels that it hasn't left them
with adequate provision or they don't believe it to be valid for
example, if it hasn't been drawn up in line with the legal requirements
outline above.
Finance >
Finance
The importance of making a will.
By : Benedict
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Keywords:
estate make must want children signed dont married after such