Many people first think about making a Will when something significant happens in their life. Buying a house, getting married or having a child often prompts people to consider what would happen if they died. These are all very good reasons to make a Will, but you do not need to wait for a major milestone.
A national poll of almost 2,000 people, commissioned by charity Will Aid, found that 67% of UK adults either do not have a Will or have one that is out of date. Some 57% have never made one at all, while another 10% said their existing Will no longer reflects their circumstances or wishes.
Perhaps more surprisingly, among those who had not made a Will, the most common reason was believing they had nothing worth leaving behind, cited by 29% of respondents. Cost and simply not finding the time were each cited by 19%.
Once you start building up savings, own property, have investments, start a business or acquire other assets that matter to you, it is a good idea to consider what should happen to them after your death.
A Will gives you control over who should receive your money, property and possessions, who should administer your estate and, where relevant, who you would want to care for your children.
Without one, your estate will instead be distributed according to the rules of intestacy. Those rules will not necessarily produce the result you would have chosen yourself.
AFG Law’s experienced Private Client team helps individuals and families put appropriate plans in place for the future. We can advise on making or updating a Will, how your estate could be distributed and wider planning such as Lasting Powers of Attorney and Inheritance Tax considerations.
When is the right time to make a Will?
There is no particular age at which everybody suddenly needs a Will. For many people, the need arises as their financial and personal circumstances develop.
Buying a house is often the point at which people first think seriously about making a Will. The Will Aid research reflects this, with 18% of people who had made a Will saying buying a house prompted them to do so. Having children was an even more common trigger, cited by 23%.
However, you don’t necessarily need to wait for one of these milestones.
You might only be in your twenties, for example, but already own a property, have substantial savings or run your own company. In those circumstances, making a Will can be just as relevant as it is for somebody much older.
Some of the most common reasons to make or review a Will include buying your first property, having children, getting married, entering a civil partnership, starting a business, receiving an inheritance or building up significant savings and investments.
You should also consider a Will if there are particular family members, friends or charities you would want to benefit from your estate.
The important point is not to think of a Will as something you only need later in life. If you own assets and care about who receives them, there is a reason to consider making one.
Buying a property
Buying a house is one of the most common times people decide to make a Will. For many people, their home is their largest asset. It therefore makes sense to consider what should happen to it if they die. This can be particularly important where a property is jointly owned. The way in which you own the property can affect what happens to your share following your death.
If you are buying with an unmarried partner, you should not assume they will automatically inherit your share simply because you live together. A solicitor can consider how your property is owned alongside your Will and explain whether your current arrangements reflect what you actually want to happen.
Having children
Having a child is another important reason to make or update a Will. As well as deciding how to distribute your assets, a Will gives parents an opportunity to nominate who they would like to act as guardian for their children if both parents die while the children are under 18. You can also consider how an inheritance should be managed for children and the age at which they should receive it.
This is an area where proper planning can be particularly valuable. Simply leaving everything directly to a young child without considering how the inheritance should be managed may not reflect what you actually want.
Starting or owning a business
Starting a business is an often-overlooked reason to make a Will. If you own shares in a limited company, have an interest in a partnership or operate another type of business, that interest can form part of your estate.
Your death could therefore affect not only your family members, but also your business partners, employees and the future operation of the company. Your Will should be considered alongside any shareholders’ agreement, partnership agreement or other business arrangements already in place.
Business owners may also need to think more carefully about Inheritance Tax and the reliefs that could potentially apply to their estate. Specialist legal and tax advice may be required where significant business assets are involved.
Getting married or entering a civil partnership
If you are married or in a civil partnership, you should still consider making a Will. It is dangerous to assume that your husband, wife or civil partner will automatically receive everything you own.
The intestacy rules determine what happens where somebody dies without a valid Will, and the outcome can depend on which relatives survive you and the value of the estate.
Marriage can also affect an existing Will. In England and Wales, getting married or entering a civil partnership will generally revoke an existing Will unless it was made in contemplation of that particular marriage or civil partnership.
If you already have a Will and are planning to marry, it is therefore sensible to take advice rather than simply assuming your existing arrangements will continue.
There are also particular estate planning considerations for transfers between a wife or civil partner, or a husband, wife or civil partner more generally, including the way Inheritance Tax rules can apply.
What should you consider when making a Will?
A Will involves more than writing down who you would like to receive your house. You need to decide who should act as your executors. These are the people responsible for administering your estate after your death.
You should then consider who you want to benefit and what they should receive. You may want to divide the estate between several people, leave particular possessions to named beneficiaries or make gifts to charities.
Parents should consider guardianship arrangements for children under 18 and how children’s inheritances should be managed. You should also think about what should happen if somebody named in your Will dies before you.
For larger or more complicated estates, there may be Inheritance Tax and wider estate planning considerations. The appropriate approach will depend on the complexity of your family and financial circumstances. Most importantly, your Will should reflect your own wishes rather than what you assume the law will do automatically.
What makes a Will legally valid?
A Will is an important legal document, and there are formal requirements that need to be followed. In England and Wales, a person making a Will generally needs to be at least 18, make it voluntarily and be of sound mind.
The Will must be in writing and signed in the presence of two witnesses who are both present at the same time. Those witnesses must also sign the Will in the presence of the person making it, although they do not have to sign in each other’s presence.
Who acts as a witness also matters. A beneficiary, or the spouse or civil partner of a beneficiary, should not witness the Will because this can affect the gift to that beneficiary.
These formalities are one reason why apparently simple homemade Wills can cause difficulties. It can be easy to make mistakes which only become apparent after somebody has died and can no longer explain what they intended.
Taking legal advice can help ensure that your Will is legally valid and accurately records your wishes.
Should I consider a Power of Attorney at the same time?
Making a Will is also a useful opportunity to think about what would happen if you were still alive but became unable to make important decisions yourself.
A Will deals with what happens after your death. A Lasting Power of Attorney deals with decisions that may need to be made during your lifetime.
There are two types of Lasting Power of Attorney; one dealing with property and financial affairs and another dealing with health and welfare.
You might think you are too young to need one, particularly if you are making your first Will after buying a house or starting a family. However, loss of capacity is not something that only affects older people. An accident or unexpected illness could leave somebody temporarily or permanently unable to manage their own affairs.
You do not have to make a Will and Lasting Power of Attorney at the same time, but it is sensible to consider both as part of your wider planning.
Should you use a solicitor to make a Will?
It is possible to make a Will yourself, but there is considerable value in getting professional advice.
A solicitor can discuss your family circumstances, property, business interests and other assets before preparing a Will that reflects what you want to happen.
This becomes particularly important where there are children from previous relationships, unmarried partners, business interests, significant assets, complicated family relationships or potential Inheritance Tax considerations.
A solicitor will charge for preparing a Will, and the amount will usually depend on the complexity of the work required. However, the cost should be considered against the problems that an unclear, incorrectly executed or unsuitable Will could create later.
Don’t wait for the “right” age to make a Will
There is no need to wait until retirement or until you consider yourself wealthy enough to need a Will.
If you own a house, have savings, run a business, have children or simply have particular people you want to benefit from what you leave behind, making a Will gives you an opportunity to decide what should happen.
Your Will should then be reviewed as your circumstances change, particularly following marriage, divorce, the birth of children, changes to your assets or significant changes within your family.
AFG Law’s Private Client team can advise you on making or updating a Will and discuss whether other arrangements, including Lasting Powers of Attorney and wider estate planning, should also be considered.
Contact AFG Law’s Private Client team for advice on making a Will and putting the appropriate plans in place for your family, assets and future.