Writing a will is one of the most important things you can do to ensure your loved ones are taken care of after your passing. However, many people in UK neglect this crucial task, assuming that it is something to worry about later in life. In reality, having a will in place provides peace of mind, financial security for your family and legal clarity.
Ensuring your wishes are followed
A will is a legally binding document that sets out how you want your assets and estate to be distributed after you die. Without a will, your estate will be divided according to the laws of intestacy (LINK), which may not align with your personal wishes. This means that certain family members or friends you could would have wanted to benefit may not receive anything. Having a will ensures that your estate goes exactly where you intend it to.
Avoiding family disputes
A clearly written will can help prevent disputes among family members over inheritance. In the absence of a will, disagreements may arise regarding the distribution of your assets which could lead to costly legal battles. By specifying your wishes in advance, you can reduce the likelihood of conflicts and provide clarity for your loved ones during a difficult time.
Protecting your partner and children
If you are unmarried and pass away without a will, your partner may not be legally entitled to any of your assets, even if you have lived together for many years. This can leave them financially vulnerable. Additionally, if you have children, a will allows you to appoint a guardian to care for them should something happen to you.
Minimising Inheritance Tax
Writing a will can help you structure your estate to minimise inheritance tax liabilities. Without careful planning, your loved ones could face a significant tax bill, reducing the amount they inherit. By using legal tax planning strategies, such as making gifts or setting up trusts, you can maximise the amount passed on to your beneficiaries.
Appointing an Executor
When you create a will, you can appoint an executor – a trusted individual responsible for managing your estate after your death. This person ensures that your debts are paid and your assets are distributed according to your wishes. Without a will, an administrator is appointed by the court, which may not be someone you would have chosen.
Making funeral arrangements
A will can also include details about your funeral wishes, relieving your family of the burden of making difficult decisions during an emotional time. You can specify preferences such as burial or cremation, the type of ceremony you want and other personal requests.
Writing a will is not just for the elderly or the wealthy. It is a crucial step for anyone who wants to protect their loved ones and ensure their estate is handled according to their wishes. Without a will, the law decides what happens to your assets. By taking the time to create a will, you can provide security and peace of mind for both yourself and your family. You can find more information on how to get started writing your will at Citizen’s Advice, click here.
It is important to take professional advice before making any decision relating to your personal finances. Information within this article does not provide individual tailored investment advice and is for guidance only. We cannot assume legal liability for any errors or omissions it might contain. Ethical Futures llp is authorised and regulated by the Financial Conduct Authority.