Finance Q&A's
Make a will, make a choice
It’s all too easy to put off making or updating a will. However, without a full, legal document in place outlining your wishes, decisions regarding your estate and even guardianship of your children could fall to the government. Lakeside practice principal Matthew Hibbert outlines the process, power and importance of keeping your will in check.
Why do you need a will?
M: If you were to die without leaving a valid will in place, then your estate would be shared out according to specific rules put in place by the government, known as the “laws of intestacy”. These cover what happens to your property if you die without a will in place, but without a will the government also takes responsibility for appointing guardians too. It is therefore of utmost importance to write a will if you have dependent children. Other key reasons to do so include: if you are unmarried, have significant wealth, are a homeowner, have step-children or children from a previous relationship.
In short, if you don’t want the government to make decisions about your belongings and your children, you should make sure you have a will in place.
When should you update a will?
M: The government advises that you should review a will every five years. In the interim, major life events should also trigger you to revisit the document, such as having a child, moving house, inheriting a significant amount of money or getting married or divorced. Marriage is significant to note here as there has long been a law in place that means marriage revokes a will. Therefore, even if you had one before getting wed, it will become void at the point of saying “I do”.
A change of heart as to a named executor or guardian on the will may also prompt you to amend.
What are the most common misconceptions about wills?
M: The most prevalent misunderstanding is people believing that without a will in place, their assets will automatically go to their wife/husband and children. As outlined above, this is not always the case as the rules of intestacy come into play.
Similarly, many people are under the impression that in the event of their death, their estate would be handed to a long term partner. However, there is no such thing as a common-law partner. So, without a will, assets would pass to a blood relative rather than a partner.
Why do people put off writing a will?
M: It’s usual down to time and the need for emotional decisions to be made. However, contrary to common belief, drawing up a will can be a relatively straightforward and quick process, when handled by the right person. Once the options have been discussed, the will writing itself can take as little as 20 minutes.
Though there can be some emotional and difficult decisions to agree on, making a will means making a choice, so power ultimately remains with you. Plus, once signed off, there are usually only sporadic changes along the way, and so you can rest assured that your estate plans are in safe hands.
What are the benefits of a professional assisting in the writing of a will?
M: Financial advisers, such as those of us at Lakeside, are particularly well placed to handle your will because we approach it from an advisory point of view, rather than just taking an instruction. So, instead of merely listening to what you think should happen to your estate, we go several steps further to ensure that the will is tailored to your precise circumstances, resulting in the very best plan for you.
Even if intestacy laws are in line with your wishes, having a financial adviser draw up your will means that we can add additional protection to your estate using estate planning and trusts. These might include:
- Preventing your assets dwindling due to long-term care costs
- Keeping assets in your bloodline, so stopping the spouse of a child being entitled to part of the inheritance if divorce should occur
- Protecting inheritance against means-testing so a beneficiary can still access government benefits
- Avoiding inheritance being squandered by a beneficiary
- Protection against inheritance tax
Finally, our professional knowledge means we can flag and address any issues and refresh any outdated clauses, resulting in a robust and detailed legal document.
Please feel free to contact us for further information: admin@lakesidefs.co.uk
