Don't Have a Will? Here's Why You Need One

Having a Will in place is something many of us have thought about, but have done very little about – we’re either unsure how to or simply we feel don’t have enough assets to put one into place. But, the reality is every adult should have a Will.

If you’re reading this, more than likely you will be thinking about making a Will, so let’s demystify the process, and begin with why you need a Will.

Having a Will in place allows you to decide how your estate, whether this consists of money, property or personal belongings, is divided up. It also puts someone in charge of this process; an “executor” who ensures your wishes are carried out.

If you have children or others who are dependant on you financially a Will allows you to name and appoint a guardian or trustees, and also set up trusts for when they reach a certain age. A Will also ensures those who are financially dependent upon you, receive the money and care they need after you have died.

Having a Will can help to reduce the amount of Inheritance Tax (IHT) that may be payable on the total value of the estate you leave behind. There are a few exceptions where IHT doesn’t apply these include:

• If the total value of the estate is below the Nil Rate Band (NRB), or
• Everything is left to a spouse or civil partner, or
• Everything is left to an exempt beneficiary, such as a non-profit charity

Should your estate value over the NRB then IHT applies to the part of your estate over the NRB threshold, however, an additional main residence nil rate banks may also apply to certain estates. To find out more about Inheritance Tax visit our articles page.

Now, what happens if you don’t have a Will in place? If you die without a Will the Courts will take over and distribute any assets to your loved ones – but probably not the way you wished. While this process is taking place your assets may be liquidated, and before distributing according to the laws of “intestate succession”. Unless you are married with children, it is unlikely your estate will be divided as you wish. It is worth noting even if you have a Will in place, it doesn’t cover your full estate; this rule will apply to the distribution of those assets not covered in the Will.

An “executor”, who is this and what do they do? The person you appoint to sort out your estate and carry out the instructions outlined in your Will is the executor. You can appoint more than one person for this role and can choose whomever you like, however, it’s important to get this choice right.

The role of an executor can be more complicated than initially thought, even if the instructions in your Will are simple – the process can take up to several years to complete. Difficulties can arise if, for example, they have to decide when to sell your property so that those who are to inherit the proceeds receive the most amount of money for the property. Or ensuring the correct amount of Inheritance Tax, Capital Gains Tax or Income Tax is paid. Depending on the assets of the estate this process can become extremely complicated.

An executor can be anyone over the age of 18, and you can have as many as 4 executors named, however as they have to act together it may not be beneficial to appoint 4 executors. It is common practice to appoint at least 2 executors, and possible substitutes if they die before you. It is recommended to appoint a family member and a professional, such as a solicitor, as it is helpful to involve a specialist with experience and knowledge in Wills and Taxes. This is where Eatons comes in.

Appointing Eatons Solicitors as an executor to your Will makes sense, especially if things are likely to become complicated –as experienced lawyers with a wealth of knowledge around all things legal, financial and property related, we can ensure your wishes are carried out with little added stress to your family and loved ones.

Now, here’s the best way to actually start your Will, begin by writing down a list your assets and their estimated value. It’s always best to start with the easiest assets to value such as cash assets and bank accounts.  

Then move to items with changeable values, as these can be more difficult to estimate and include items such as any businesses you may own or part own, stock market investments including shares, bonds and funds.

Lastly, write down any properties, including your home, any investment properties and land, don’t forget the value of any debts secured against your property. Lastly, any sentimental items you may want a particular loved to receive – a record collection maybe?

Now you need to decide how you are going to divide your assets – by using Eatons Will and Inheritance Questionnaire we can ensure all your wishes are taken care of and your loved ones receive everything you treasure.

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