Metis AM
Having a will give you piece of mind that all your assets are distributed to who you want them to go to.
However, new figures show that there were nearly 10,000 challenges to the distribution of inherited estates in English and Welsh courts and tribunal service centres in 2021. So, having a watertight will is now more important than ever.
Data reported by the Financial Times indicates a 37% increase from 2019 in family disputes of a will. So, if you want to avoid family squabbles when you pass away, read on to establish how to make a watertight will, and why it’s so important.
Writing a will yourself could result in a range of issues
A contributing factor to the recent rise in disputes comes from the increased number of DIY wills created during the Covid-19 pandemic.
The pandemic caused people to focus on setting their financial affairs in order in case something were to happen to them if they caught Covid-19. However, this has led to an increase in DIY wills, possibly to save money or because they wanted to create a will during lockdown periods.
While writing a will yourself could save some money, there are some downsides.
It could end up costing your family more in the long run
The cost to dispute a will and factors not mentioned in the will, such as what would happen to your pension, can soon add up. In the long run, it might be cheaper overall just to have your will written professionally.
Your family may not be able to access your assets for a long time
If a dispute is ongoing between family members, it can take significant time for it to be resolved, delaying any distribution of assets.
The complexity of the law
There are different rules that need to be considered when writing a will, which may be wrongly interpreted or not complied with. This could lead to an increase in the likelihood of the will being invalid or contested.
These factors have led to 10,000 people challenging wills and the distribution of inheritance in English and Welsh courts in just two years.
More than half of UK adults don’t have a valid will
After the Covid-19 pandemic, research completed by Royal London indicates that more than half of adults (56%) in the UK don’t have a valid will. That figure then rises to 79% for 18 to 34-year-olds.
The research undertaken in September 2021 also found that, of those who don’t have a will, 47% see the value but haven’t got around to making one.
Having a will can prove invaluable to preventing these disputes for your family later, especially at a time that could be full of sadness and increased emotion. Here are five things you should do if you are writing or thinking of creating a will that is watertight.
5 things you should do if you want a watertight will
1. Make sure the will is valid
A valid will means that your will is properly drawn up and witnessed, and that you take care that there can be no claims that you were unduly influenced, or that you were not of sound mind.
When completing your will, working with a legal professional can add value. It may be advisable to attend alone, so that any person attending the meeting with you cannot be accused of influencing your decisions.
To prevent people stating you were not sound of mind when completing your will, you may want to obtain a capacity report from your GP, especially if you are over 70 years old or have ever had any form of mental illness.
2. Seek professional advice
If you can, you should obtain professional advice while creating your will.
A professional can provide advice on a plan to share out your assets the way that you want, reduce Inheritance Tax, help you to set up trusts if required and any other further information.
3. Have a plan for estranged family members or to avoid conflict
You may have estranged family members, but it is important to carefully consider the impact of removing them from your will or leaving them less than they expect. If you do, this may lead them to contest the will.
It could be a good idea to create a separate document or add a “letter of wishes” (see below) detailing why certain family members or friends have been removed from the will or why they have been left less than other people.
If you suspect that there will be someone that will try and contest the will, you can avoid challenges by putting your assets in to a trust.
Having a trust will benefit those you want to leave your assets to, but it typically does not form part of your estate, so will not be part of your will. This means it cannot be challenged in court.
4. Write a letter of wishes
A letter of wishes is a document that outlines important information such as the details of the assets being shared, where documents have been kept, who the executors or trustees are, funeral plans, and instructions for the care of any children.
You can also include your reasons for excluding someone from your will or leaving them a smaller amount compared to other beneficiaries. This may reduce the likelihood of them being able to contest the will.
5. Keep your will up to date
Your will needs to be kept as a live document. Every significant life event such as getting married, divorced, having more children or grandchildren, or just cohabiting should be reflected in your will. If it is not kept up to date, your assets may end up with someone you may not want.
If you are cohabiting with someone, you need to ensure that it is stated in your will, as your partner will not have the automatic rights as if you were married. That means they will not be entitled to your property or assets unless you make this explicit in your will.
Get in touch
If you require further advice on financial planning for retirement or mitigating a possible Inheritance Tax bill, please email enquiries@metiswealth.co.uk or call 0345 450 5670.
Please note
This article is no substitute for financial advice and should not be treated as such. To determine the best course of action for your individual circumstances, please contact us.
The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.
