08/12/2016
Almost half of adults have not yet made a will, according
to research carried out for The Observer by Co-op Legal Services. It found that
just 53% had put down in writing what they wanted to happen in the event of
their death.
It’s not a job anyone relishes, but if you die without
leaving a will, you could leave costs and complications for your loved ones to
deal with, alongside a great deal of heartache.
“There’s a common misconception that only the supremely
wealthy need a will, but everyone should have one – even if you’ve not got much
to give,” says Hannah Maundrell from website Money.co.uk. “Writing a will
doesn’t have to cost a fortune and it won’t take long. Whatever your
circumstances, it’s definitely worth doing. If not, you risk leaving your
grieving family with a whole host of problems.”
Co-op Legal Services found several reasons why people put
off writing a will, with 46% saying they have nothing to leave, 15% not wanting
to think about death, and 14% simply not having got around to doing it. Other
concerns include the time it might take and the amount it might cost.
The idea of not wanting to think about death is a big
sticking point, with many people still not comfortable discussing it. “Talking
about dying won’t make it happen,” says Toby Scott from the Dying Matters
coalition. “It can feel a bit morbid at first, but knowing you’ve got your
plans and affairs in order can be a great relief. You can then get on with
living the life you have, safe in the knowledge that everything is in place for
loved ones.”
What happens if you die without a will?
“It can leave surviving loved ones in a real mess,” says
Scott. “It can cause problems that take a long time to sort out, and can
trigger arguments that can split families apart.”
The reality is, if you die without a valid will you will
have no say in what happens to your estate. In this scenario the law decides –
the legal term is intestacy. Under the rules of intestacy your estate will be
divided among certain blood relatives in accordance with a strict order of
priority, which may not be in line with your wishes.
While these rules were updated in October 2014 in a bid
to offer more protection to close relatives, certain groups have not
benefitted. Hayley North, chartered financial planner at Rose & North,
says: “If you are not married your partner has no entitlement to anything – even
if you have children together.” Step-children and step-grandchildren also do
not automatically inherit.
So a will is particularly important for cohabiting
couples, as well as those who have remarried and have complicated family
structures. Also, it doesn’t just ensure that the right people benefit
immediately after your death – it can allow you to make sure that a new partner
stays in your home when you die, but that your children will still be in line
to inherit.
With this paperwork in place, you can also make sure more
of your estate goes to your loved ones rather than into the chancellor’s
coffers in avoidable inheritance tax. In addition, you can use this document to
set out who will be your executors – the people who will oversee the
distribution of your estate. You can even use your will to set down your
funeral wishes.
“If you have young children, the other critical thing is
who will be their legal guardians,” says North. “However, it is vital to have
the conversation with friends and family long before this is required.”
When should you write a will?
Another reason commonly cited by people for not having
made a will is that they are too young to think about it. In reality, it is
never too early. Steven Cameron, pensions director at Aegon, says: “None of us
knows what the future holds, so the earlier people start inheritance planning,
the better protected their loved ones will be.”
A will can be revised later if necessary, or written to
take into account certain changes you expect - for example, if you are living
with a partner but think you may get married you can have wills written “in
contemplation of marriage”. Inserting this means a will is still valid after
you marry.
Should you do it yourself?
If your affairs are very straightforward, you could
consider buying a DIY kit. WH Smith, for example, sells them from £9.99.
Elsewhere, Which? offers a “self service” will writing
package starting at £99 for an unmarried person and £156 for mirror wills for a
couple. Other online will writing services include Affio.co.uk and
Rocketlawyer.co.uk.
You need to think very carefully before opting for one of
the cheaper DIY options without legal assistance. According to Co-op Legal
Services, around a quarter of the wills it sees in its probate and estate
administration department are DIY documents. Of these, approximately a third
are deemed ineffective in some way. This could include ambiguity in the wording
and misunderstanding of legal terms, and in some cases wills have not been
witnessed.
“This can result in an estate not being distributed as
the person intended,” says James Antoniou from Co-op Legal Services. “It can
also have a significant impact on the length of time it takes to administer an
estate.”
It’s also worth noting that anyone can set themselves up
as a will writer, so it is important to ensure you are using a specialist legal
professional who is regulated and insured.
North from Rose & North adds: “While using a
solicitor is more expensive than going down the DIY route, it will ensure that
everything is set up correctly – and could prevent some serious mistakes.”
If you are thinking about drawing up a will it is worth
looking into the Will Aid (Willaid.org.uk) scheme, which runs throughout
November. This is a campaign based on a partnership between the legal
profession and nine UK charities, with solicitors waiving their usual fees for
writing a basic will, and instead inviting people to make a donation to Will
Aid. The recommended amount is £95 per person, or £150 for a couple.
Once you’ve drawn up your will it is important to ensure
it remains up-to-date. As a rule of thumb you should revisit it every three to
five years – or when there is a material change to your life, such as marriage,
children or divorce.
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