58% of people in the UK don’t have a will and many believe they don’t need a will as they assume their estate will be automatically passed on to their partner or loved ones. However, this doesn’t always happen, making it crucial that you create a will to ensure your estate is handled how you would like it to be.
Why do I need a will?
It’s commonly misunderstood that people don’t need a will if they don’t have a lot of assets. However, it’s always recommended to create a will as it ensures your assets are distributed to who you would like to receive them. Other reasons to create a will include:
- A will makes it easier for family members and friends to handle your estate after you pass away - Without a will the process of sorting out an estate can be time consuming and highly complex.
- Wills allow you to distribute your estate to your chosen beneficiaries - Without a will your estate will be distributed in a standard way according to the law. This could mean that the people you want to receive a part of your estate may not. For example, if you aren’t married to your partner and you haven’t created a will, they may not receive any of your assets. Being able to choose who inherits parts of your estate is especially useful if you have children, people who depend on you or if you want to leave something to people outside of your family.
- Wills can help reduce Inheritance Tax if you have an estate over the value of £325,000 - Inheritance tax can be reduced on the value of any property and money that you leave.
When should I make a will?
In theory, you can write a will at any point in time, however, it’s recommended to create one as soon as possible. Unfortunately, if you keep putting off the creation of a will you may be in a position where you may need to deal with other priorities or if you’re receiving end of life care, are unwell, or in a hospice, you may be considered by law as lacking mental capacity to create a will. As a result, it’s better to write a will as soon as possible.
What happens if a person dies without a will?
Dying without a will, also known as intestacy, in England and Wales means that the deceased’s estate will be distributed according to legal default.
Learn more about what happens if a person dies without a will in our blog.
What should be included in a will?
When creating a will, there are a few things that should be included:
- Your beneficiaries - Who you would like to benefit from your will.
- Who should look after any children under the age of 18 if you pass away.
- Your executor - Who will sort out your estate and carry out your wishes after death.
- What happens if your beneficiaries die before you do.
- Any wishes for your funeral can be included.
