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Our Top Three Reasons for Making a Will

reevesindependent
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Where there’s a will, there’s a way.


Having a will is essential for ensuring your assets are distributed according to your wishes after your death. It allows you to designate beneficiaries, appoint guardians for younger children, and minimise legal complications by providing clear instructions for your estate.


A well-drafted will can also assist in tax planning, helping to reduce the tax burden on your estate. If you pass away without a valid will - whether you never created one or it was not properly drafted - the laws of intestacy will apply. This means your estate will be distributed according to these rules, which can impact the Inheritance Tax (IHT) you owe. The amount of inheritance tax charged will depend on the value of your estate and the beneficiaries you choose.

Additionally, it offers peace of mind, knowing your preferences will be honoured, and can be easily updated to reflect changes in your life.


A will is a vital tool for protecting your legacy and providing for your loved ones.

Read on to discover the top reasons why making a will is essential.


What is a will?

A Last Will and Testament is a legally binding document that specifies how you want your assets and wealth to be distributed after your death. Planning for the management of your finances after you pass away is a significant responsibility, essential for securing the future of your family and loved ones. At Reeves Independent, we are here to guide you in making the best decisions for your estate.


Why should I have one?


Join the 49% who have secured a will - it’s essential for ensuring that your wishes are respected after your passing. A will allows you to control how your assets are distributed and decide who will care for your dependents, making your preferences clear and providing peace of mind for you and your loved ones.

Taking the time to create a will is essential for securing your legacy and protecting your family’s future.


Naming Your Children’s Guardian

When creating a will, you're not just addressing financial matters; you also have the authority to designate who will care for your dependents, such as your children. If your children are under 18, you can appoint legal guardians to ensure they are looked after by the right people, safeguarding their happiness and future well-being. A will gives you the power to make this important decision.

 

 

Minimise Inheritance Tax Liability

Intestacy occurs when someone passes away without leaving a valid will, whether due to not creating one or not drafting it correctly. This situation can significantly impact the Inheritance Tax (IHT) your estate may incur. The amount of IHT charged depends on the value of your estate and your chosen beneficiaries. Assets left to a spouse or civil partner are automatically exempt from IHT, and transferring property to children or grandchildren can further reduce the tax burden compared to leaving it to others.


Eliminate Cost, Time, and Stress

Assuming that your loved ones will automatically receive an inheritance is a risky mistake. It's essential to create and regularly update your will to ensure your estate is distributed according to your wishes. The probate process - validating your will in court - can be lengthy and costly for your family. Additionally, it reflects only your current circumstances. If your situation changes or you want to revise your decisions, make sure to update your will accordingly.


How do I create a will?

Creating a will involves several important steps to ensure your wishes are clearly articulated and legally binding. Start by making a comprehensive list of your assets, including property, bank accounts, investments, and personal belongings. Next, decide who will inherit these assets, designating specific beneficiaries for each item if desired. It's also essential to choose a trusted executor who will manage your estate and ensure that your wishes are carried out effectively. If you have minor children, designate a guardian to care for them in the event of your passing.


You can write the will yourself, use an online service, or consult with a legal professional to ensure it meets all local legal requirements. When drafting your will, clearly state that this document is your last will and testament, include your full name and address, and detail how your assets will be distributed.


Once your will is completed, sign it in the presence of at least two witnesses who are not beneficiaries, as this is required in the UK. After signing, store the will in a secure location, such as a safe or with a trusted individual, and inform your executor where it can be found. It's important to regularly review and update your will, especially after significant life events such as marriage, divorce, or the birth of children, to ensure it accurately reflects your current wishes and circumstances. By following these steps, you can create a will that provides clarity and peace of mind for both you and your loved ones.


What happens if I don’t have a will in place?

As touched upon, if you don’t have a will when you pass away, your estate will be subject to the laws of intestacy, which dictate how your assets are distributed. You can find out more about these rules in our handy blog piece. 


Here’s what typically happens, if you live in England or Wales.


If you pass away without a valid will - referred to as dying intestate - your spouse or civil partner will inherit only a portion of your estate. Currently, they receive the first £270,000 and half of any amount above that. They may still inherit if you are formally separated but will not if you have divorced or legally ended your civil partnership.


Your children could be left with nothing if you pass away without a valid will. If your estate is valued at less than £270,000, then your children will receive nothing, as your entire estate will go to your spouse or civil partner. However, if you do have more and are survived by children, whether biological or adopted, the remaining portion of your estate will be divided among them.

Alternatively, if you do not have a surviving spouse or civil partner, your children will inherit the entirety of your estate.


Under intestacy rules, all your children are treated equally. Children from all relationships, as well as legally adopted children, will receive equal shares of your estate.


However, unless they have been legally adopted, stepchildren are not entitled to any portion of your estate if there is no will specifying otherwise, regardless of your relationship with them or how long you cared for them.


Under intestacy rules, your children will receive their inheritance only when they either reach the age of 18 or, as unlikely as it is, marry or enter into a civil partnership before turning 18.


If you pass away intestate, your grandchildren and great-grandchildren will only inherit from your estate if their parent or grandparent (your child) passed away before you or if their parent (your child) is alive when you pass away but dies before reaching 18, without being married or in a civil partnership.


If either of these applies, your grandchildren and great-grandchildren will inherit an equal share of what their parent or grandparent would have received.

Other relatives, such as siblings, uncles, and aunts, may inherit part of your estate if specific conditions are met.


If you have no surviving relatives then, without a legal will, your estate will pass to the Crown.


Sadly, this means your estate may not be distributed according to your wishes, and those you may have wanted to provide for could be left without any inheritance.


Creating a legally binding will is essential to ensure your estate is distributed according to your wishes, allowing you to care for your loved ones even after you’re gone. Take control and make sure your wishes are followed. Not having a will can create uncertainty, potential conflict, and unwanted outcomes regarding your estate and dependents. It’s crucial to have a will in place to ensure your wishes are respected.


Reeves can assist you with estate and legacy planning, including creating a will tailored to your needs. Our team is here to ensure your wishes are respected and your loved ones are protected. Book a free review today to get started on securing your future!

 

 

 

The contents of this post are not intended as and should not be taken as advice. Any actions taken on your financial products may be irreversible and could negatively impact your financial planning, so we recommend seeking personalised financial advice before acting. Investment performance is not guaranteed, past performance is not an indicator of future performance, and you may get back less than your original investment.

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