Where there’s a Will, there’s a Way

12/02/2021

Thinking about one’s death, rather morbid as it may seem, and with an almost awkward aura of social taboo has previously seemed a no-go topic of conversation. Who wants to talk about their own death? Well, turns out, that in 2020, discussing one’s legacy was comparatively ‘very on-trend’ with research proving that writing one’s Will jumped by over 267%¹. And, what’s more, it seems that we have our very own prime minister to thank for that.

Did you know that on the day Boris Johnson went into intensive care, there was a huge spike in Brits putting pen to paper and writing their will?²

What exactly is a Will and why should I write one?

A Will is a legal document that sets out instructions for who will inherit your estate and what should happen to your possessions after you die. It also includes your wishes for the type of funeral you would ideally like and more importantly if you have children this is the place to clearly state who you would like to be their guardian. Your last ‘Will and Testament’ is a legally-binding document – but be careful, if it isn’t prepared properly, it may not be valid.

And now the end is near… I want to do it my way.

Unfortunately we have all read stories about families out over discrepancies in Wills, with one in four saying they would challenge the division of a loved one’s estate if they weren’t happy with their share³ Did you know that Frank Sinatra added a ‘No Contest Clause’ (also known as a Forfeiture Clause) to his Will? This means that if anyone contested his Will they would automatically forfeit their inheritance! This is why having your Will professionally written is crucial.

There are many other reasons why you should have a Will or update your existing Will, here we look at some of the top reasons for making a Will, and how dying without one could affect your loved ones:

Who will look after my children?

When writing a Will, you don’t just decide how your estate is divided up, you also have a say as to who should look after your dependents. If they are under 18, you can also appoint their legal guardians. It’s worth knowing that if you don’t have a legal responsibility clearly written into your Will then the decision of guardianship will, somewhat stressfully for all involved, fall to the courts. Another key thing to note here is that Godparents are NOT legally-binding guardians.

How do I provide for my children financially?

As well as saying who will raise your children, you can make plans to provide for their future financially. This might include putting aside money for their education, making sure they receive a set amount each year for clothing or hobbies, or establishing a nest egg to help them buy their first home.

At this point you can also set up a Trust enabling you to control at what age your children receive any monies and you can also state what that money is used for.

Can I provide for my step-children in the same way?

The law states that only spouses or blood relatives can automatically inherit if there is no Will in place. If you want to provide for your stepchildren, you will need to write a Will that includes them. The same goes for anyone you treat as your children including nieces and nephews.

My partner and I aren’t married, does this matter?

If you are unmarried or not in a civil partnership then you are not entitled to anything from your estate unless specifically stated in your Will – no matter how long you have been together.

If there are jointly owned assets, the other owner would normally inherit them, or they could apply to the courts for a share if they can demonstrate dependency. However, the only way to ensure your partner will receive their fair share is to write a Will. Without a Will in place, any children would have a claim on the solely owned assets, and if there are no children the assets would be passed on to parents and siblings. A co-habitee, through law, has no rights. If the family home is in your name only for example then your unmarried partner is not automatically inline to inherit it if you die without a Will – meaning they may lose their home.

With a Will in place, you can leave your partner a share of the property, or a right to reside there. Special types of trusts written in your Will can provide you with some security that your surviving partner can continue to live in the property but ultimately your share in the property is preserved for your children. Adding certain trusts into your Will can also be very useful in helping to protect the equity in your home from being used to fund your partner’s residential care home fees. This can be particularly beneficial where the home is jointly owned.

I’ve paid so much tax through my life, can I avoid inheritance tax?

The amount of Inheritance Tax that will be charged from your estate depends on how much you have, and who you leave it to.

Anything left to your spouse or civil partner will be automatically exempt from Inheritance Tax on first death. Leaving property to your children and grandchildren is also likely to generate less Inheritance Tax than leaving it to others.

I’m getting divorced, can I change my Will?

It is important to regularly review your Will and re-write it when your circumstances change, for example getting married, separating, or getting divorced.

It’s also worth remembering that a Will is technically valid even if you separate from a spouse, so they could still be entitled to your assets until you formally divorce.

How can I ensure my Will is done my way?

At Lloyd & Whyte (Financial Services) Ltd we are pleased to be able to take your Will instructions, listening to your wishes and ensuring that everything is legally put in place. What matters to you, matters to us.

Our Wills and Trusts Practitioner specialises in all areas of Wills:

- Wills to include Discretionary Trusts
- Wills to include Property Protection Trusts
- Wills to include Flexible Life Interest Trusts
- Wills to include Inheritance Tax Savings Strategies
- Wills to include Pilot Trusts
- Wills to include Business Property Trusts
- Asset Protection Lifetime Trusts
- Inheritance Tax Planning
- Lasting Powers of Attorney