Why do I need a Will?
Most people put off making a Will – it’s just one of those things which never seems to get to the top of your ‘to-do’ list. However, a Will is important no matter what your circumstances however old you are and however small or big your assets are.

The main reason for having a Will is that so that when you die, the people who you want to benefit will get a share of the estate. If you die without a Will (known as intestate), your estate will be distributed according to the rules laid out by the statute, which was made in 1925! If you were married and had children, your partner will be allowed up to £125,000 and the income off half of the rest of the estate. However, if you were not married at time of death, your partner is not entitled to anything in the estate. Instead, your estate will be divided between your parents, siblings and any living relatives. If you have no relatives, your estate will go to the Crown.

A Will is also important if you want to have a particular kind of funeral – this can be laid out in the Will. If you have children, you can also declare who you would like to look after them after your death. It is also very important to do a Will so that you can plan and ensure that Inheritance Tax is avoided.

Tax
Any part of your estate valued at over £275,000 will be subject to higher rate tax – 40%. Bear in mind this value includes property, so is is very easily reached.

There are things you can do to minimise tax – this example should help demonstrate how planning can be really beneficial:
You and your husband own property worth £600,000. You decide to give your husband everything. When you die, he will be taxed and have to pay £130,000.
However, if you decide to gift you children £275,000, the tax bill would be £20,000. No more tax would need to be paid, so you would save a tax bill of £110,000.

This is a simple calculation and the benefits are incredibly high.

Revisions
It is important that you regularly review your Will to ensure that circumstances are reflected – think about revising your Will if there are births or deaths in the family, you get divorced, married or separated, your financial circumstances chance or you move abroad to live.

We suggest reviewing your Will every 12-18 months to ensure everything in it is up to date.

Click here to see a list of companies who can help you make or revise a Will.

Popularity: 5% [?]