A recent survey estimated that two-thirds of UK adults don’t have a will. Although a will is reasonably easy and economical to prepare, it’s just one of those things that gets left to do later until, unfortunately, it is too late.
But dying without leaving a will can create major problems for those left behind who have to look after your financial affairs.
The billionaire Howard Hughes died intestate (without a will) in 1976 and it took 34 years before his affairs were finalised with around 600 distant relatives sharing his wealth. It also took Jimi Hendrix’s sister, Janie, and brother, Leon, 45 years to come to an agreement on his estate following his death in 1970. You would have thought someone like Abraham Lincoln who, as well as being the US President, was a distinguished lawyer, would be better prepared, but when he was assassinated in 1865, even he didn’t have a will.
You may think that your estate (what you are worth) does not compare to these three individuals but you could be surprised at what you are worth! Even if you don’t own your own home, and have little in the way of savings, you could still be leaving sufficient assets to justify a will. You may, for example, own a car, have a life insurance policy or a pension plan. Your employer may also include a death in service payment as part of your pension arrangements. And if you own your own home, have children, or live with a partner you are not formally married to, you certainly should write a will.
One reason people give for not considering a will is not wanting to think about death. When you are young, fit, and healthy it seems a bit morbid to be thinking about your demise. But it’s going to happen to all of us one day so it’s wise to prepare. Another reason for delaying the task is that we find the whole idea of preparing a will too mind numbingly complicated and scary. This article will tell you why you should have a will and how to go about getting one.
A will is a legal document that sets out what you want to happen to your assets after you die. It can also deal with arrangements for the care of children and pets and often funeral arrangements. If you do not leave a will, your assets will be distributed in accordance with a hierarchy laid down by law. This depends on what relatives are left but, if for example, there is a spouse and children, the spouse receives all personal assets (furniture, etc.), the first £270,000 of assets and half the remainder. The balance is shared between the children. If no relatives can be traced, your estate goes to the Crown
The advantages for having a will include:
· Making it clear who you wish to leave your assets to and who you don’t.
· Allowing you to be specific about particular items such as who receives family jewellery or antiques.
· Avoiding any future family disputes about your estate.
· Appointing a guardian for the care of children and providing for their financial security.
· Ensuring those important to you benefit, even if not blood relatives or legally married.
· Safeguarding your home – if you are unmarried, any partner would not automatically inherit the family home.
· If you want to donate any organs upon your death, making your wishes clear to your relatives.
· Arrangements for your funeral – whether you want to be buried or cremated, your funeral arrangements, and even what music you would like at your funeral. The most popular funeral songs are “My Way” by Frank Sinatra, “The Best” by Tina Turner and “Always Look on the Bright Side of Life” by Eric Idle!
· Providing care for any pets you may have.
· Making donations to your favourite charities.
So, how do you go about writing a will? There are a number of rules that need to be complied with to ensure that a will is valid. Although it is quite possible for you to write your own will, the best advice is to ask a solicitor to prepare one for you. If you are married, you may have “mirror wills” which provide separate documents for each partner. It is likely to cost a few hundred pounds but will be worth it in the long term. Many charities offer free or reduced priced will writing services in the hope that you will leave them a donation. You can also do it yourself. There a is plenty of information available on the web and will writing forms to help you prepare a valid will. But if your wishes are not straightforward you should consult a solicitor.
The most important requirements for a legal will are:
· You must be over 18.
· You must be mentally capable at the time of writing your will.
· It must be dated.
· Even if you haven’t written a will before, include a statement at the beginning something like this: “I hereby revoke all former wills and testamentary dispositions heretofore made by me”. This ensures that this is your latest will. and any earlier ones are invalid.
· You need to appoint one or more Executor(s) who will be the person/people who will deal with your affairs after your death. They will have to collect information about your assets and apply for a Grant of Probate. An Executor can be a beneficiary of your will and should ideally be a close relative or friend who you trust to look after your estate. It is advisable to have more than one so that if one is unavailable, someone else can step in. It can be a complicated task, but an Executor can appoint a solicitor to deal with the paperwork if required. BUT DO NOT appoint a solicitor as your Executor as this can be extremely expensive and your family may lose control over the process.
· The will must be signed and dated by you.
· Your signature must be witnessed by two individuals who are present at the same time and who must also sign the document adding their full name and address.
· The witnesses should not be beneficiaries under the will.
· There should be no alterations or crossings out in the document. If you wish to make changes you can add a codicil which should be referenced to your will and detail any changes or additions to your wishes. The safest means for dealing with changes is, however, to draft a new will.
· Remember that circumstances change and that your will should be reviewed from time to time and rewritten if appropriate.
· Also ensure your will is kept somewhere safe and secure and that your relatives know where to find it in the event of your death.
An example Will document is shown here. This document is for illustrative purposes only and provides for someone who is married with children. The estate is being left to their partner or if he/she dies before them, to their children. It is for illustrative purposes only and should not be construed as a legally valid will. The word “Partner” might refer to “Wife”, “Husband” or “Co-habiting partner”. “Relatives / Friends” might refer to “My Wife / Husband”, “My Son / Daughter or ”My best friend”.
Note that clause 8 enables the will writer to incorporate the very comprehensive legal jargon relevant to the management of trusts and estates in one simple clause that is understood by the legal professional. Known as STEPS, The Society of Trust and Estate Practitioners is a global professional body representing advisers who specialise in inheritance and succession planning. The clause refers to their published standard conditions. In most cases this will be of no relevance to simple wills but in the event of more complicated situations, such as trusts for the benefit of children, then the law will be clear on how the estate should be managed. STEP Standard Provisions can be viewed here.
This article is for general information only and should not be construed as legal advice. Readers are advised to obtain professional advice from a solicitor or professional will writer before making any decisions about their will.