How to make a will

Thursday, 05 March 2009

It is in everyone's best interest to make a will, although estimates claim that around two-thirds of people in the UK die without having sorted their issues out. Not leaving a Will can cause families unnecessary legal and financial problems.

Although it is possible to write your own Will, it is not advisable as, if not done properly, it can be invalid. It is best to employ a specialist, to ensure that all the necessary legal formalities are covered. Specialists can also help you minimise amount of dreaded Inheritance Tax on your death. Inheritance tax is the tax you pay on your estate. In simple terms this is everything that you own at the time of your death, once you have taken away anything that you owe. Writing a Will professionally allows you to reduce the amount of inheritance tax you pay. In some cases, it can even eliminate it altogether. You can get expert advice on how to leave certain things to particular people and organisations which means that inheritance tax is not charged on them. This means you leave more money to your loved ones and relatives rather than to the taxman. Charitable donations are free from inheritance tax and you can donate what you want without worrying.

If you have made a Will and your circumstances change, then you have to update it. Unfortunately, changing a Will is not a priority during major traumas such as divorce or change in finances as you will have other things to worry about, but failure to do so can result in your Will becoming invalid.

If you die without a Will there may be problems. Although there is a common belief that your assets automatically pass to a partner, this is not what the law states. For example, if you are not married and your partner dies, there is no automatic inheritance of your partner’s assets.

Without a valid Will, your estate can be divided under the Laws of Intestacy. This law does not account well for modern situations and the law can decide how your assets are divided. It also stipulates that if you have no relatives alive when you die, then the law has every right to pass your estate directly to the Crown.

If you don’t make a Will, then your next-of-kin would be incumbent for funeral expenses from their own funds and also, they may have to pay inheritance tax before receiving any of your assets. This could add up to a substantial amount to be found from their own pockets.

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