…and What Happens If You Don’t
It’s not a subject most of us like to dwell on, but making a will is one of the most important financial steps you can take both for your peace of mind and your family’s future. Despite this, more than half of UK adults have not made a will, often assuming they’re too young, it’s too complicated, or that their estate will automatically pass to their loved ones. Unfortunately, that’s not always how things work.
The Cost of Dying Without a Will
When someone dies intestate, that is, without a valid will, their estate is divided according to strict legal rules. These rules don’t take into account personal relationships, your intentions, or family dynamics. For example, unmarried partners (even those living together for decades) have no automatic right to inherit. Children from previous relationships might be overlooked entirely.
It’s not just about money. Without a will, you lose the chance to name guardians for your children, outline your funeral wishes, or plan for pets and personal possessions.
The result? Increased stress for your family, potential disputes, and delays at an already difficult time.
The Tax Advantages of a Proper Will
A will does not just dictate who gets what it can also help reduce the amount of Inheritance Tax your estate pays. With thoughtful planning, including the use of allowances, trusts, and charitable gifts, you can often pass on more of your estate to your loved ones and less to HMRC.
For example:
- Spousal exemption: Anything you leave to your spouse or civil partner is exempt from Inheritance Tax.
- Nil-rate bands: You can leave up to £325,000 tax-free, and potentially more if your home is being passed to children or grandchildren.
- Charitable gifts: Leaving 10% of your estate to charity can reduce the overall tax rate from 40% to 36%.
With property prices increasing in the villages over the years, these legal exemption and gift rules written into your will can help your estate remain outside of the inheritance tax threshold.
A Simple Step with Lasting Impact
Making a will is simpler and more affordable than many people think. Belcher Addison Solicitors will-writing services can guide you through it, and it can be updated as your circumstances change. Far from being a gloomy task, it’s one of the most thoughtful gifts you can leave your family.
Don't leave your legacy to chance make a will and ensure your wishes are carried out exactly as you intend. If you are thinking of making a will, please feel free to give us a call at Belcher Addison on 01243 377231. By Donna Thomas Solicitor at Belcher Addison.