Why make a will?

Making a Will is something that most of us put off. After all, death is not something we like to contemplate! It is tempting to assume that everything we own will automatically go to our intended loved ones. Some people may also mistakenly believe that they do not have anything of value to leave. These common misconceptions may be far from the truth. Without a Will, you could be leaving a host of problems for your family: they may have to pay more inheritance tax than would otherwise have been necessary and, worst of all, your estate could pass to people whom you never intended to benefit.

Some of the reasons for making a Will are:

To make certain that your partner inherits what you intend. If you die without a valid Will the intestacy rules apply, often with undesirable consequences. The amount your spouse or civil partner will receive is limited: he or she may have to share your estate with other, possibly distant, relatives. Unmarried partners are entitled to nothing
To appoint legal guardians to bring up your children in case both you and your partner die before they are 18
To appoint Executors of your own choice to deal with your estate and Trustees to hold property on trust, e.g. for children while they are minors so that they do not inherit large sums at a young age
To save Inheritance Tax ("IHT"). This is presently charged at 40% on the value of assets exceeding £325,000. There are some exceptions, but the family home is not specifically excluded. Hence, if you left a house worth £1.5 million and other assets of £500,000, the IHT bill could exceed £675,000. You can avoid this by leaving everything to your spouse. In other cases you can take advice as to the best way to minimise IHT.
To provide for a second spouse or partner as well as a family from an earlier marriage or relationship
To direct your business interests (such as shares in the family company/partnership or farming interests) to the appropriate beneficiaries, e.g. a son or daughter who has come into the business. Important IHT reliefs can apply to these interests giving discounts of either 100% (i.e. complete exemption) or 50%. Again, a properly drawn Will can maximise these tax savings
To leave personal items such as jewellery and heirlooms to specified beneficiaries, possibly by reference to an informal letter of wishes
To benefit favourite charities
To state your wishes for any specific funeral arrangements (ie burial, cremation, or the use of your body for medical research)

Even if you have already made a Will it is important to keep it under review at regular intervals (at least every five years and particularly when family circumstances, finances and taxation laws change). Simple alterations can be made by short document called a Codicil.

It is said that death and taxes are the only certain things in life. By making a Will you could avoid or minimise the latter. Nothing can be done to avoid the former (!), but at least you will have the peace of mind that your estate will be dealt with by people you trust; will pass to your chosen beneficiaries and the grief your family experience will not be coupled with the unfavourable consequences that might otherwise ensue.

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