Making A Will

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Making a will

Death is inevitable, for all of us. Whilst an expected death is wished for by most, unfortunately the reality of death is that it can be premature and completely unexpected. Making a will means that all of your assets and property are properly distributed to those people who you decide should receive them.

Although making a will is both easy and cheap to do, many people still do not. Dying without a will is known as dying intestate, and can often result in heartache and stress for loved ones and next of kin. In this instance, the most likely person to benefit from your death is often the taxman, and without a clear division of your property disagreements in the family and loved ones are more likely.

Often people do not make a will because they are confused by the lengthy legal jargon. However, with a few pointers the entire process becomes simpler.

For instance, your estate (what you leave) will consist of your assets minus your liabilities. Whilst this sounds like accountant-speak it is really very simple. Liabilities are things that you owe (loan, overdraft) and assets are things that you own (car, furniture, etc.)

Your executor is the person nominated to take charge of your estate when you die. They will pay the taxman and distribute the balance (known as residue) to the beneficiaries (the people you nominated.)

If no executor is appointed, the High Court will issue something called a grant of probate and appoint one to act on your behalf. If your estate is valued at over £275,000 then any remaining money will be liable for inheritance tax, which is levied at 40 per cent. This tax must be paid before the beneficiaries of the will can receive their portion of the will. If the family cannot afford to pay the inheritance tax bill, the estate will be frozen until it is settled. This is exactly the kind of hurtful situation most recently bereaved people will wish to avoid. In the event of a death, a life insurance policy could be used by the executor to pay off the inheritance tax bill.

Dying Intestate

Dying without a will leads to many complications. Your estate will be divided according to intestacy rules, all of which can result in problems. If you have no relatives, for instance, your estate passes directly to the Crown. Whilst a solicitor may seem expensive, they can be worth every penny.