A Which? report last year found that their will writing service experienced an increase in orders of 682% during April 2020.
The rise in interest coincided with the first national coronavirus lockdown. Arguably, this suggests that the need for a will is well understood. It can protect your loved ones and your wealth, should the worst happen, and ensures your wishes are known.
And yet recent figures from the Law Society show that by the time lockdown restrictions began to ease, 59% of those surveyed did not have a will in place.
Keep reading to find out three reasons why you should put a will in place now – and why if you do have a will, you need to make sure it is up to date.
1. You choose where your money goes
Having spent a lifetime accruing your wealth, it is only right that you should have a say in how your assets are distributed after you are gone.
The simplest way to do that is through a will.
If you die without a will – dying “intestate” – your estate will be subject to the laws of intestacy. The laws set out a list detailing who your money can go to, beginning with a spouse or civil partner, then your children and remaining blood relatives. If no surviving relatives can be found, your estate will pass to the Crown.
A cohabiting partner whom you are not married to does not inherit under the laws of intestacy. Nor do any stepchildren you may have.
You might have both a partner and stepchildren who are financially dependent on you. There may be other vulnerable people who also rely on you for support. You can use your will to state exactly where your money should go, ensuring your wealth is passed to those that need it.
If you think that dying intestate would result in your assets being distributed in a way that doesn’t align with your wishes, it is vital that you look into writing a will immediately. You’ll be protecting yourself and your loved ones.
If you do have a will, life events – such as a birth, marriage, or divorce – could mean that your priorities have changed. Review your will and update it to make sure your new wishes are reflected.
2. It limits the stress and worry for those you leave behind
A recent study by probate specialists, Exizent, found that dealing with finances after a death causes mental health problems for 40% of the bereaved.
Research revealed that 36% found dealing with the paperwork after a death harder than expected. 95% stated that the process was stressful, with 20% saying that that they became “extremely” stressed.
Putting a will in place could severely reduce the administrative worry your loved ones experience, and at a time that will already be very difficult for them. The added issues – and costs – that arise when a death occurs with no will in place are easily avoided.
The government used its “tax day” in March to announce changes designed to “reduce administrative burdens for those dealing with Inheritance Tax (IHT).” From 1 January 2022, over 90% of non-taxpaying estates will find they no longer have to complete IHT forms.
If you think your estate will be liable for IHT though, putting a will in place is the simplest way to make the handling of your estate as stress-free as possible.
3. You put yourself in control and have peace of mind
Putting a will in place puts you in control of your accumulated wealth. Not only can you say who benefits from your distributed estate, but you can specify where particular assets should go and appoint legal guardians to look after those assets where it is in the best interest of the recipient.
Writing a will also provides a great opportunity to assess your wealth and think about how to manage your estate in a tax-efficient way. HDA can help here, so get in touch if you’d like to discuss any potential IHT liability. We can also use our professional connections to introduce you to the right legal advisers to help you write your will.
Finally, by taking control of the future, you give yourself peace of mind and an appreciation of the present. You can relax, knowing that although the unexpected can happen at any time, your loved ones will be looked after when it does.
Get in touch
At HDA, we understand the importance of estate planning. We can put a plan in place to help you live your desired lifestyle in retirement. We can also help to find the most tax-efficient way for you to pass on your wealth when you die.
A will is the best way to put yourself in control and limit the stress for your loved ones at an already difficult time.
If you’d like our help to find a legal adviser to put your will in place, or if you’d like to discuss any aspect of your long-term financial and estate planning, please get in touch. Email enquiries@hda-ifa.co.uk or call 01242 514563.
Please note
The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.
