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Making a will - sorting out your financial affairs

It is important to make a will even if you feel that your circumstances are quite straightforward.

It is estimated that only one third of adults have made a will. If you die without a will you may leave your family with a complicated situation to sort out at a time when they are least able to deal with it.

If you die without a will there are rules in place which will dictate how your estate will be distributed. In many cases this may not be the way which you would choose.

Many married couples or couples in a civil partnership assume that their spouse or partner will automatically inherit their whole estate. This is not the case. If they have children only the first £125,000.00 plus personal possessions is inherited. This amount includes the value of your house. There is a strong possibility that your spouse or civil partner may not inherit their home and could be forced to sell in order to fund the legacies due to other family members.

This is known as the ‘laws of intestacy’.

Unmarried partners and partners who have not registered a civil partnership cannot inherit from each other without a will, so the death of one partner may create serious financial problems for the surviving partner.

Under a will you can choose who will manage your finances on your death by appointing executors. If you die while your children are still young you can choose who will manage their share in your estate until they are old enough to do that for themselves. If you are divorced and do not make a will although your children may well inherit your estate the executor will be the person with parental responsibility for your children, often your former spouse.

A will also enables you to appoint guardians to care for your children on your death. This is particularly important where stepchildren or unmarried parents are involved as the partner may not automatically become the children’s legal guardian.

It may be possible to reduce the amount of tax payable on the inheritance if advice is taken and a will is made.

It is important to take legal advice when making a will. The language in the will needs to be precise if the will is to have the legal effect which is intended.

Expert Financial Solutions Ltd does not offer will writing services, we prefer instead to work with other local professionals including Lorraine Stacey of Stanger Stacey & Mason solicitors in Witney.

 

July 2008

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