Why should I make a Will?
We often hear individuals reluctant to make a will as they feel everything will pass automatically to their spouse/partner.
Sadly, this is not the case. Each day, we make decisions about our assets, and this care needs to be taken by making a Will to ensure the destination of your assets on your death.
What can I do in my Will?
- Decide who inherits your assets rather than unexpected family members benefiting.
- Pass treasured personal items to who you have chosen.
- Appoint guardians for your minor children and set up trusts for their future.
- Deal with your business interests to protect family members.
- Set up a trust to mitigate the effects of residential care fees on your home or to provide for the protection of children from a first marriage.
- Protect your cohabitee by leaving them provided for.
- If you are single then choosing who amongst your family and friends will benefit.
- Ensure that your assets are managed in a tax-efficient manner.
- In a second marriage, you can balance the assets between your partner and children from your first marriage.
What happens if I do not make a Will
If you die without a Will your assets will be distributed by a set of rules which sets an order as to who inherits (The Intestacy Rules). This could have the following effects;
- Individuals who were dear to you could be overlooked. They might have to make a claim.
- If you are cohabiting then your partner could lose their home and your financial support in favour of other family members.
- Your business assets may not pass to your family.
- Individuals from whom you are estranged may benefit.
- Make it very difficult for your family whilst matters are sorted out as often a partner is making a claim against children from previous relationships or indeed joint children.
We sadly see very unfortunate outcomes when a will is not made
Common scenario:
A and B are in an established relationship but not married and all the assets including the house are in A’s name. A has adult children. A runs a business and B works in the business. A dies without a will. Under the Intestacy Rules A’s adult children are the beneficiaries. B will then have no right to any assets including their long-term home and also potentially will lose their source of income as well. B will have to bring a claim against A’s estate to benefit. This is generally a long process whilst B is amid bereavement and will also potentially upset the relationship between B and A’s adult children.
What A could have done
A could have set up a life interest trust to protect B’s right to stay on the property for a defined period. This would have allowed B the comfort of a home but then allowed for the house to pass to A’s children at a later stage. The business could have been dealt with to provide continuity for both B and the other employees. Any balance of assets could have been balanced between B and the adult children in a considered manner.
The lesson is to take as much care of your assets on your death as you would in life. Be kind to your family and don’t leave them in a financial mess on your death.
Our Wills, Trusts and Estates team can guide you through the whole process, whatever your circumstances. For more information and advice contact Fiona Ashmead at Prettys Solicitors 01473 298342 or on fashmead@prettys.co.uk