Making a Will routinely falls to the bottom of the ‘to do’ list. Commonly, this is viewed as a task for retirement. However, putting a Will in place isn’t just a task for later in life, and here is why.
The importance of a Will
If you pass away without a Will, your estate is distributed according to the intestacy rules. This means the law decides who inherits your estate, which often contradicts your personal wishes and can lead to unintended consequences for your family.
Here is a brief look at the risks of not having a valid Will in place:
- Unmarried partners get nothing. There is a growing trend of couples choosing to cohabit rather than marry or enter into a civil partnership. There is no automatic right to inherit any part of your estate, even if you have lived together for a considerable period of time. They could also potentially be forced out of a shared home.
- Your spouse/civil partner might not get everything. If you are married or in a civil partnership but have children, your spouse or civil partner will inherit your personal possessions and a statutory legacy, which is currently £322,000. The remainder of the estate is then split equally between your spouse or civil partner and your children. While anything left to a spouse or civil partner is exempt from inheritance tax, the share of your estate passing to your children is not. This is now more critical than ever, with unused pensions being liable for inheritance tax from April 2027. That change alone is going to push many more estates over the inheritance tax threshold.
- Specific personal possessions are not protected. Without a Will, you cannot ensure that specified items, such as family jewellery, go to the people you want to have them. Having a Will allows you to leave specific items to chosen individuals.
- Stepchildren are completely left out. Blended families are more common than ever. However, stepchildren have no right to inherit anything under the intestacy rules unless they are legally adopted.
- Your children are left without chosen guardians. Estate planning is rarely a priority for young families. However, without a Will, this decision may be left to the courts. Naming a guardian in your Will allows you to clearly express the individuals you want stepping in to look after your children.
- Distant relatives could inherit everything. Without a Will, your estate is distributed according to the rules of intestacy, meaning everything could end up with distant relatives you rarely speak to, rather than the friends or charities you might prefer to inherit from your estate.
A carefully drafted Will not only resolves the above issues, and more, but also minimises the risk of family disputes. By creating a legally binding document that clearly sets out your wishes, it becomes much harder for anyone left out of the Will to make a claim against your estate. This is especially effective if you formally document your reasons for excluding someone, whether those reasons are a relationship breakdown, concerns over financial irresponsibility, or because you have children who are already financially secure and you wish to support others who need a share of your estate more.
A Will also allows you to express your funeral wishes, making the arrangements easier for your family when the time comes. While not legally binding, outlining your funeral wishes in a Will means your family won’t have to second guess your preferences during an already difficult time.
Furthermore, if you own business assets, a Will allows you to determine what happens to your shares or the company itself, if you are a majority shareholder. Our Corporate department can also work with you to protect your company right now and in the long term.
If you would like to discuss preparing a Will, or simply want to discuss further about why they are so important, please contact us either through our website or one of the phone numbers below.
Darlington office: 01325 466 221
Durham office: 0191 386 4843
Northallerton office: 01609 772 160
Middlesbrough office: 01642 051 533