This post is to introduce you to the importance of making a will in the first instance. If you have made a will, when was the last time you reviewed it? Our preferences do change over time and so decisions we have made in the past may not now be appropriate. If you have not been introduced to the concept of dying tidily, please read to the end of this article to find out more.
Why make a will?
There is no requirement in law to make a will so why should you make one. There are a number of reasons. Primarily, making a will ensures that your estate is distributed to relatives, friends or organisations in line with your own wishes and not the rules of intestacy.
You can choose the best people to be executors of your estate as well as appointing guardians of any children and providing directions as to burial or cremation etc.
Dying intestate
Should you die without a valid will in place, your estate will pass following the intestacy rules. These are a fixed set of rules which must be followed in order to determine who has an entitlement to your estate and how much can be passed to that individual. These rules are designed to meet the likely wishes of the average person. No family is typical and so this may be entirely inappropriate depending upon the specific circumstances.
If you are not married but live with your partner, your partner will have no automatic rights to inherit from you on your death if you die intestate. Jointly owned property, depending upon how it is owned (see below) may automatically pass. Some other examples of assets which may not pass under the rules of intestacy may be pensions and life assurance policies written into trust.
Jointly owned property
Property held with another person can be held either as Joint Tenants or Tenants in Common.
Property held as Joint Tenants will automatically pass to the other owner on death of one owner. The property is said to pass by right of survivorship. This happens despite any provisions you may have made in your will for that specific property. Jointly held bank accounts usually pass in this way.
Property held as Tenants in Common is property owned by two or more people who each hold a share of the property. In this case, you as a part owner can choose to dispose of your share to any person with no agreement required from the other owner. Therefore, when a co owner dies, the right of survivorship does not apply and so the share passes under that persons will or pursuant to the rules of intestacy.
How do I make a will?
There are a number of formal requirements to be observed when drawing up a will. You may also wish to ensure that it is efficient from a tax perspective.
It is also important to ensure it will actually achieve your wishes as poor wording can sometimes be ineffective.
Although we can provide tax advice relating to a will, we cannot draft the document for you.
Does my will last forever?
You can change an existing will by executing a codicil which is effectively an addendum or appendix. A codicil must observe the same legal formalities of a will.
However, it is considered tidier to replace the existing will altogether. In these circumstances care must be taken to ensure that it is clear that all previous wills are revoked otherwise on death it may be necessary to consider the contents of all previous wills.
Marriage automatically revokes an existing will, unless the existing will expressly states that it is made in contemplation of marriage to a particular person. If it does, then marriage to that named person would not revoke the will.
Summary
If you do not have a will, now is the time to think about making one. If you do not already have a professional to assist you, then we can provide you with a recommendation.
If you have made a will, then perhaps this is the time to review it. This is especially important if your family circumstances have changed since the last will was executed.
If you are a client, ask your advisor about our ‘Die Tidily’ document which is a template document we have created to record important aspects of your financial affairs. The completed document may be useful to your executors in helping them deal with your affairs following your death.
Please contact us for additional information
