The Importance Of A Will
There are many benefits to having a well drafted Will in place. Best advice is to make sure you have a Will in place so you have control over how your estate is managed when you die. Without a Will, and therefore no clear instructions, the default system as set out in Statute comes into play, which can often go against your wishes.
Some of the benefits that can be achieved by drafting a Will, and would be lost with the default system, are:
- You can specify who will administer your estate.
- You choose who will look after your children if you die whilst they are minors
- You can minimize or avoid altogether the payment of Inheritance Tax.
- You choose the age at which your children will inherit your estate. (The default age of eighteen is considered too young by many clients.)
- You minimize the risk of your assets being lost to pay for means-tested residential care in the future.
- You control how and when inheritance is received by beneficiaries who may have problems with debt, drug and alcohol dependency or marital difficulties.
- You can provide for beneficiaries with disabilities or those who are unable to manage money adequately.
However, by far the most important reason to have a Will in place is to ensure that when you die your assets pass to the people of your choosing.
A Word Of Warning
There are two common misconceptions in relation to inheritance which can result in serious complications and a great deal of worry and stress for those left behind.
The first is that if a married person (or a person in a registered civil partnership) dies, their whole estate will automatically pass to their spouse (or civil partner), and a Will is therefore not needed. This is not the case.
If the deceased person was married and had children, the spouse is entitled only to the first £125,000 of the assets in the deceased person’s name, along with personal possessions. The remainder of the estate is split between the spouse and children.
If the deceased person was married and had no children, the spouse is entitled only to the first £200,000 of the assets in the deceased person’s name, along with personal possessions. In this scenario, the remainder of the estate is split up between other relatives of the deceased, such as their parents and siblings.
The second misconception is that a co-habitee or long term partner who is not married (or in a registered civil partnership), can benefit from the estate.
The default rules governing inheritance (Rules of Intestacy) set out a very strict order of people who can benefit from a deceased’s estate. These rules do not recognise at all what is often referred to as a ‘common law’ husband or wife.
In addition, others who are not recognised under these rules are step-children, fostered children or any other person, apart from a spouse or an adopted child, who is not related by blood to the deceased.
It is fair to say that the Rules of Intestacy no longer fit with many modern family structures, which only goes to emphasize the importance of having a Will to provide for dependents. Those dependents would otherwise be left no option other than to make a claim against the deceased’s estate though the Court system; a stressful and expensive alternative.
Having a Will prepared professionally is quick, easy and relatively inexpensive and one of the simplest steps a person can take to get their affairs in order and provide for their loved ones.
If you wish to engage in will planning, whether it be simple to the more complex, and require the services of a solicitor to do so, Warr & Co is happy to recommend the following: -
Moira Percival or Christine Thornley
Gorvins
2-14 Millgate
Stockport
SK1 2NN
Tel No. 0161 930 5151
Fax No. 0161 930 5252
Email Moira at moira.percival@gorvins.com
Email Christine at christine.thornley@gorvins.com
Warr & Co receives no financial remuneration from referrals in this manner.
Date of Article: 9th May 2008
