Making a Will
How would you want your money and possessions to be distributed when you die?
Who would you want to take care of your children?
These are things that most of us don’t like to think about, but writing a will is an important thing to do for your loved ones. Without a will in place, a very difficult time can be made much worse by the potential disputes and costs involved in sorting out financial matters.
Who needs a will?
Ideally, everyone should have a will.
Wills aren’t just for wealthy people with a lot of assets to be divided. Most people own a car, household furniture, and have bank accounts. Many people own a house, life insurance policies, and pensions. You may even have ownership of some shares. These are all considered as assets, and therefore part of your ‘estate.’
Having a will that spells out what should happen with your money and possessions when you die can make things easier for your loved ones. You can also use your will to specify arrangements for who will look after your children, or even your pets, in the event of your death.
The following groups of people, in particular, should seriously consider creating a will:
- Parents. If you have any children under the age of 18, having a will means that you can say who you’d like to look after them. It also allows you to specify what assets they should inherit from you, and when. Having a will in place means that you can protect your children’s interests.
- Married Couples or Civil Partners. When you marry, your new spouse automatically becomes your heir. Perhaps you have other loved ones, or even charities, that you’d like to benefit from your assets? If this is the case then you will need to have a will drawn up to clearly set out your wishes.
- Divorcees. If you get divorced, you’ll want to make sure that your will reflects your new circumstances. Having an up to date will can ensure that your money and possessions are distributed according to your wishes.
- Unmarried Partners. If you’re not married, your partner may not benefit from your estate without a will. If you live together in a home you own, or your partner has a financial dependency on you, then your death may cause them serious financial problems. Putting a will in place can help avoid any issues.
This list isn’t exhaustive. If you don’t fall into any of these categories but have clear feelings about what should happen after you die, you should consider having a will drawn up.
What happens if I die without a will?
If you die without a will, you are considered to have died ‘intestate.’ This means that certain rules need to be followed. These rules dictate how your money, property or possessions are allocated. Ultimately, the courts will apply this strict set of rules, known as Rules of Intestacy to divide your assets.
Having these Rules of Intestacy applied may mean that your estate is not divided up as you or your family intended. It can cause your family distress due to disputes over what each member should receive. It can also delay the release of any money or assets, and lead to financial hardship while they wait for the courts to distribute your assets.
When you write a will, you can choose one or more people to execute the will. They can be a family member or friend, or a professional like an accountant or solicitor. If you die without a will in place, then an Administrator will be chosen under the Rules of Intestacy.
In Scottish and English law if there are no traceable surviving relatives, then all of your possessions after any debts are paid will automatically go to the Crown. Creating a will allows you to choose what happens to your assets if you have no family, rather than them becoming government property by default.
The Rules of Intestacy also apply if you do have a will, but it is considered invalid for any reason.
Requirements for a valid will
In order for your will to be valid, it must meet a number of criteria:
- Made voluntarily, by a person who is 18 years old or over
- Made without pressure from any other person
- Made by a person who is of sound mind.
- Made in writing
- Signed by the person making the will in the presence of two witnesses
- Signed by the two witnesses, in the presence of the person making the will
Some other considerations:
- Neither a witness nor the spouse of a witness can benefit from a will.
- The will should include the date that it was signed (although no date does not invalidate the will)
How often should I review my will?
As a general rule of thumb, you should review your will every five years. If you experience any of the following life events, you should review your will as soon as possible.
- Marriage
- Divorce
- Separation
- Birth of a child
- Death of a relative
- Change in financial circumstances
All the above events are likely to change how you want your assets to be divided. With this in mind, it’s important to review your will to make sure that it still represents your wishes. In the case of marriage and divorce, they can invalidate all or part of any existing will.
Can I write my own will?
It’s certainly possible to draw up your own will. If your wishes are very simple or straightforward and your estate is small, it may be an appropriate option for you. However, it’s important that your will is worded clearly. Any small mistakes in wording can result in your wishes not being followed as intended.
Many people don’t have very simple or straightforward needs when it comes to wills. It’s increasingly common for family situations to be complicated or diverse. This can affect how you wish to divide your assets. You may have children from different marriages or step-children that you want to benefit upon your death. Factors like these can make drawing up your own will much more complicated.
Instructing a solicitor to draw up your will ensures that your wishes are laid out clearly using the correct legal wording to avoid any misinterpretation. The law around inheritance can be tricky, and a solicitor can give you expert and confidential advice to make sure your will best represents your wishes. They can also ensure that you do not accidentally invalidate all or part of your will by not meeting the legal requirements.
A good solicitor will also take into account any tax implications. If you have assets worth over a certain amount, your will can form part of your tax planning. This helps avoid large tax bills on your estate when you die. Proper tax planning can make the process much smoother for your loved ones and ensure that they receive the inheritance amount that you intended for them.
