Wills
The need for a Will is recognised by most people, but less than 50% of the UK population have a current and valid Will in place
Why make a will?
Making a will does not need to be expensive. But it is important since it ensures that your money and other assets are distributed to those persons you wish to benefit and in a manner reflecting your intentions.
If you die without a will, your estate will be administered and distributed in accordance with the intestacy laws. The extent to which members of your close family will benefit from the estate would then be determined by law and not by yourself. Your spouse could be left with insufficient means and certainly no-one beyond your immediate family could expect to benefit from the estate without recourse to the courts.
If you are married or have a partner, both of you should make a will at the same time.
Whether married or single, the implications of inheritance tax should be considered, because the effective use of a will can substantially reduce any exposure to the tax.
If you already have a will
If you have already made a Will, you need to consider whether it is still valid. Under English law, a Will is revoked at the time of marriage, unless it was made in contemplation of marriage. Scottish law regarding wills is different to English law, and whilst marriage would not revoke a will, it is essential to review your will at that time.
Where there is any major change in personal circumstances, such as marriage, divorce, the birth of a child or a death within the family, your will should be reviewed.
Inheritance Tax
Wills can play a very important part in inheritance tax planning. They are a cost effective way of mitigating a possible heavy inheritance tax liability, especially to ensure
that both spouses use their exemptions to the full.
Executors and trustees
The choice of executors is critical. You could select a family friend, close relative, an independent expert, or, of course, a combination. It is important that those chosen are both willing and competent to cope with any problems that might arise.
The executors of your will be responsible for administering the estate in accordance with your wishes, settling debts and testamentary expenses, and dealing with all your assets. Even if your affairs are straightforward, there is considerable work involved in carrying out the task of administrator.
The responsibilities of an executor can be onerous and it is not always appropriate to appoint a member of the family alone. This is especially so where an estate is complicated by such assets as a significant investment portfolio, a business interest, or agricultural or other land, the distribution of which will almost certainly involve difficult decisions.
Where a trust is created by your will, trustees will also need to be appointed. Trustees have a responsibility to invest funds according to the terms of the trust, striking an appropriate balance between income and growth. Accounts must be submitted to the Inland Revenue each year and a continuing presence may be required from the trustees for many years.
Some good reasons for making a will
1. To make life simpler for your family on your death.
2. To ensure your property goes to those you want to benefit - in the proportions you decide.
3. To ensure your spouse or partner is not deprived of the family home.
4. To ensure a common law partner benefits, as you would wish.
5. To appoint a guardian for your children.
6. To ensure specific gifts are made according to your wishes.
7. To minimise tax on your estate.
8. To ensure any change in your circumstances e.g. marriage, does not accidentally revoke your wishes.
Advice on wills
HLS Wills & Trusts Ltd have established relationships with various independent legal practices and will be pleased to supply details on request.
Please note that the information above is for general guidance only and represents our understanding of current rules, regulations and Inland Revenue practice at time of going to print. We cannot assume legal liability for any errors or omissions it might contain.
For further information or to book an initial consultation, please contact:
HLS Wills & Trusts Ltd on
Tel: 01277 350560