The Importance of Having a Will: An In-depth Discussion
There’s no denying that drafting a will is a daunting task. After all, who enjoys the thought of planning for what happens after they pass away? However, regardless of how uncomfortable it may make us feel, creating a will is essential for numerous reasons. In this blog, we’ll delve into why having a will is so important and how it can provide peace of mind for both you and your loved ones.
What is a Will?
A will is a legal document that outlines what should happen to your assets, property, and possessions after you pass away. It also states who will take care of any dependents you have and their finances. A will must be in writing, signed by you, and witnessed by two independent individuals. In the UK, if you pass away without a will, your estate will be distributed according to a predetermined set of rules, also known as the “intestacy rules.” These rules outline how your estate will be divided amongst your surviving relatives. However, these rules may not necessarily align with your wishes. Hence, it’s imperative to create a will that accurately reflects your desires.
Why You Should Have a Will
1. You Determine How Your Assets are Distributed
If you’re someone who wishes to have control over how your estate is divided, then drafting a will is essential. A will allows you to determine which assets go to whom and when they should receive them. Without a will, your assets go to your surviving relatives according to the intestacy rules. This means you have no control over who gets what. Moreover, if you have specific possessions or assets that have sentimental or personal value to you, you can make sure that they go to the person you want.
2. You Nominate Guardians for Your Dependents
If you have dependents under 18, then it’s essential to nominate guardians for them in your will. Nominating guardians ensures that your children are given to someone you trust and whom you believe will take care of them. Without nominated guardians, your children may end up in the care of someone you wouldn’t have chosen.
3. You Can Minimize Inheritance Tax
Inheritance tax is a tax that’s levied on the estate of someone who’s passed away. The tax applies to estates worth over £325,000. However, if you’re married, and your estate is worth less than £650,000, then you may be entitled to a double nil-rate band. This means that your estate would be exempt from inheritance tax. You can also reduce your estate’s tax liability by leaving gifts to charity or creating a trust. A trust can be used to protect your estate’s assets from being used to pay for care fees.
4. You Can Appoint Executors to Manage Your Estate
An executor is someone you nominate to manage your estate after you pass away. They’re responsible for distributing your assets, paying off any debts, and fulfilling any other obligations you’ve detailed in the will. Appointing an executor ensures that your estate is managed by someone you trust and will follow your wishes.
5. Reduce the Likelihood of Disputes
When you create a will, you clearly outline your wishes, which reduces the likelihood of disputes arising amongst your surviving relatives. Disputes can arise when there’s suspicion that someone’s wishes haven’t been met. A will provides clarity and ensures that everyone is aware of how your estate will be divided.
How to Create a Will
Creating a will involves several steps. Firstly, you need to determine your assets, which includes your property, possessions, and any savings. Secondly, you need to decide how you want to divide your assets amongst your beneficiaries. Thirdly, you need to choose who you want to be the executor of your will. Lastly, you’ll need to have the will witnessed by two independent individuals and signed by yourself.
It’s crucial to seek professional legal advice when drafting your will. A solicitor who specialises in wills and probate can advise you on how to legally minimise your tax liability and ensure that your wishes are accurately documented.
Conclusion
Creating a will may be the last thing on your mind right now, but it’s vital to ensure that your assets are divided according to your wishes. A will empowers you to dictate how your estate is distributed, appoint guardians for your dependents, reduce the likelihood of disputes, minimise your inheritance tax liability and appoint an executor of your choice to manage your assets. Ultimately, a will provides peace of mind for yourself and your loved ones, and you can rest assured that after you pass away, your wishes will be followed.
For more information on why making a will is important, visit Citizens Advice Bureau’s guide on why you should make a will.