Metis AM
Writing a will is a hugely important job that can give you invaluable peace of mind. After all, it can be very comforting to know that your wishes will be respected and your loved ones would continue to be looked after once you pass away.
But despite how useful they can be, it might surprise you to learn that, according to Unbiased, nearly three-fifths of Brits don’t have a will in place. If you’re one of them, and pass away unexpectedly, it could lead to potential issues for your loved ones.
To avoid this prospect, read on to find out seven great reasons to write a will and keep it up to date.
1. You can ensure that your wishes are respected
If you pass away without a will, a solicitor will distribute your estate according to the rules of intestacy. These can often be quite strict and typically state that only spouses and close family can inherit.
If you aren’t married to your partner or want to leave some of your wealth to stepchildren, then this can pose a major problem. Despite your intentions, without a will you may not be able to pass on your wealth the way you planned.
2. You can help reduce the stress for your loved ones at a difficult time
Your death will be hugely emotional for your family, as they reflect on happy memories and process the thought that they’ll never be able to see you again.
At this difficult time, the last thing they need is the financial stress of dividing your estate. Having a will in place can help to ensure that your wealth is fairly distributed after you pass away, giving them one less thing to worry about as they work through their grief.
Knowing that you’ve done everything you can to make their lives easier can also give you more peace of mind.
3. You can use it to prevent any unnecessary arguments or misunderstandings
As well as reducing your family’s stress in the aftermath of your passing, having a will in place can also prevent problems down the road. One of the most obvious ones is a potential conflict over how your estate should be distributed.
If you don’t have a will in place, there could be arguments or misunderstandings about which family members receive which assets. This can especially be a risk if you’ve previously been divorced or have both children and stepchildren.
Before you draw up your will, it can also be important to sit down with your family and discuss your intentions, so they can understand why you’ve made the decisions you have.
4. You can name a trusted guardian for your children
While it isn’t pleasant to think about, you may want to consider the worst-case scenario of what would happen to your children if both you and your partner passed away unexpectedly. Without putting your wishes in writing, you would have no control over who would care for them.
By naming a guardian in your will, you can gain a stronger sense of control and avoid the decision being made by the courts. It can give you comfort knowing that even in a worst-case scenario, the ones who are most precious to you would be looked after by someone you trust.
5. You can rest easy knowing your loved ones will be financially secure
After working so long to build wealth for your family, it can be a worrying thought that there will one day be a time when you’re not around to care and provide for them.
That’s why drawing up a will can give you huge peace of mind to know that even after you’ve passed away, your family will be able to get by. With this document, you’ll know exactly how much your family will receive, so you don’t have to worry about them struggling financially after you’re gone.
6. You can use it to reduce your Inheritance Tax liability
When you pass away, your loved ones may have to pay Inheritance Tax (IHT) on the value of your estate. One of the advantages of having a will in place is that you can maximise your allowances, enabling you to pass on more of your wealth to your family.
Typically, you can leave up to £325,000 to your loved ones without incurring any IHT. This threshold is known as the “nil-rate band” and the value of your wealth over this limit is usually taxed at 40%.
However, if you leave your main home to your children or grandchildren then you can also take advantage of the “residence nil-rate band”. This will allow you to increase your allowance by a further £175,000, up to a total of £500,000.
At the same time, you may also be able to place some of your assets into a trust and pass them on to your loved ones in your will. This could potentially mean that their value doesn’t count towards your estate when you die, meaning that they won’t be subject to IHT.
7. You can easily adapt it to changing circumstances
Just like how making a will is a simple and straightforward process, it’s just as easy if you want to amend or update it. Change is an important part of life, which is why it’s essential to regularly review your will to make sure it still reflects your wishes.
There are a variety of major life events which could prompt you to update it, such as:
- Becoming a parent or grandparent
- Inheriting a large amount of money
- Marriage or divorce.
Keeping your will up to date can give you huge peace of mind to know that your wishes will be respected when you pass away, meaning one less thing to worry about.
Get in touch
If you want to know how to use a will to protect more of your wealth from tax when you pass away, we can help. Please email enquiries@metiswealth.co.uk or call 0345 450 5670.
Please note:
The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.
