Do I need a Will?

What is a Will and why do I need one?

A Will is a document you sign to choose what happens to your financial assets and personal possessions when you die. You can also choose people to look after your children if you die when they are under the age of 18.

If you do not have a Will, the law decides what happens to your money and possessions. This is known as Intestacy or dying Intestate. This could mean that your wishes do not take effect.

How does having a Will help me?

By creating a Will, you can choose who receives your assets and possessions. You can also include methods of protecting your beneficiaries by delaying the age they inherit or by putting their share into a trust to protect against events that may cause the inheritance to be lost.

It also gives you an opportunity to set up your estate to make it as tax efficient as possible by making the most of Inheritance Tax allowances and exemptions.

Using a Solicitor to prepare your Will gives you peace of mind that your wishes will take effect and you have made it as easy as possible for your family after you have gone.

What should I consider when making a Will?

The value of your estate

Your estate consists of what is left of your financial assets and personal possessions once any debts have been paid.

For Inheritance Tax purposes, it can include gifts you have made during your lifetime and any trusts you have benefited from as well as your share of jointly owned assets.

Inheritance Tax

Everyone starts with an Inheritance Tax free allowance called the Nil Rate Band. This allowance can be used up by gifts made in your lifetime and this depends on your individual circumstances such as how long you survive after making a gift. There is also an additional allowance linked to your main residence call the Residence Nil Rate Band. To qualify for this allowance, you must meet certain conditions and depending on the value of your estate you may not qualify for the full amount.

Surviving spouses and civil partners can potentially claim the unused Inheritance Tax free allowances from their deceased spouse/civil partner. Any amount above the available Inheritance Tax free allowance (or allowances) is subject to Inheritance Tax unless an exemption applies.

Executors

An executor is the person that carries out the instructions in your Will. Most people appoint friends or family members and you can also choose to appoint a professional executor such as a Solicitor. Executors cannot change your wishes and must follow the instructions in your Will.

Beneficiaries

A beneficiary is a person that will inherit from your estate. It is often assumed that a surviving spouse or civil partner will inherit all of your estate if you do not leave a Will but this is not always the case.

You can choose at which age your beneficiaries inherit and whether or not you wish to protect their inheritance further through the use of trusts. You should also consider what happens if that person dies before you.

There are different ways you can leave a gift in your Will to your beneficiaries. You can choose to leave them a specific item, a specific cash amount and/or a share of your estate after payment of estate expenses. Advice should always be sought before deciding what type of gifts you plan to include in your Will as the value of your estate may change over time which could affect the inheritance received by your beneficiaries.

Children and Guardians

If your children are under the age of 18, you can appoint guardians to look after them until they reach the age of 18.

Pets

If you have pets, you can choose who looks after them when you are gone.

Digital Assets

Digital assets and accounts are often overlooked when making Wills but it is very important to include them in a Will to avoid any potential difficulties for your executors and beneficiaries. Some examples of digital assets include emails, digital photos and social media accounts.

Protection

It is often appropriate to protect an inheritance for a beneficiary to avoid it being lost. A straightforward way to achieve this is by specifying an age at which the beneficiary should inherit. However, an inheritance can be protected further by using trusts. This is often considered when the aim is to protect the inheritance against care home fees or to protect it for divorcing or vulnerable beneficiaries.

This article does not constitute legal advice and we recommend you take advice from a Solicitor before taking any action.

How do I find out more about making a Will?

To find out more about our specialist Will writing services, please click here.

How to book an appointment to discuss making a Will

If you do not have a Will in place or you have a Will and would like us to review it, then please contact Paul Clark or Sarah Bushell on 01260 769 639. We offer a free initial consultation at our office (Oak House, 3 Swan Bank, Congleton, CW12 1RY) or in your own home. Alternatively, meetings can be carried out via telephone or online (e.g. via Teams).