The importance of making a Will – and keeping it up to date!

What they don’t realise is that, if you haven’t got round to making your will when you die, the Government have made one for you – it’s called the Rules of Intestacy – and this could cause all kinds of financial and emotional ramifications for those left behind.

Of equal concern is the fact that, of the 40% who do have wills, what they have in place is highly likely to be ineffective for their current circumstances.   The ‘normal’ way is for couples to leave everything to each other – commonly called ‘mirror wills’.   However, consider the following risks in leaving everything to the surviving spouse/partner:

 1.    The surviving partner may remarry and the children of the first marriage could be seriously disadvantaged if that parent made a new will.

2.    It is estimated that 1 in 5 people over the age of 65 will need long term care during their lifetime

3.    Family arguments

4.    Inheritance Tax

5.    Children may divorce or be in a difficult relationship after receiving their parents’ hard earned wealth

6.    The surviving spouse or one of the beneficiaries may have a debt situation or simply be hopeless with money 

So…………if you have a will, when was the last time you had it reviewed?

 Co-habiting couples face some extra problems.   There is no such thing as a “common law spouse” and, if you are not married to your partner if he/she dies without leaving a will then, apart from what was jointly owned, you have no right to inherit from the estate.   Think about whether your property is owned as “Tenants in Common”.   If so, then half of that will pass to your deceased’s partner’s family under the Rules of Intestacy, and you could find yourself homeless!

Author: Carolyn Whycer, The Inheritance Planning Company.