Denise Saunders
Make your Will a priority
Procrastinating can have many serious consequences. With today’s hectic lifestyles it’s easy to put things off in all aspects of our lives and financial planning. A cavalier attitude to insurance cover relying on the assumption “it will never happen to me” does nothing to protect you or your family when the unexpected happens and Retirement saving is considered a low priority by the younger generation. However, as with any nest egg, the later you leave it the harder it is to build.
One of the most serious mistakes is the failure to write a Will. A Will is a vitally important yet many people do not keep their Wills up to date, or even worse do not have a Will. If you don’t have a Will you may well be turning in your grave over the division of your assets.
For example if you are unmarried, everything will go to (in order of still living) parents, siblings, uncles and aunts, and grandparents. Failing this, the Government gets the lot; even if you have a partner they get nothing! If you’re married without children your spouse may not receive the full balance of your estate. If you’re married with children your spouse could be in for a nasty shock. This is only a brief insight. A full explanation can be provided on request.
More importantly any parents with children under the age of 18 should instruct who they would like as guardians for their children should both parents die and make tax efficient provision for their upbringing.
The increase in residential property prices and the relatively low Inheritance Tax (IHT) Nil Rate Band (£285,000) means that more people are liable to IHT. If your Will is not up to date you could be gifting the Inland Revenue a significant proportion of your estate unnecessarily!
Many couples these days have Mirror Wills, leaving all the estate to their spouse and then to the children on second death. A Discretionary Will Trust can save Inheritance Tax and if your home is a large portion of your estate you should consider an IOU Discretionary Will Trust, designed to avoid both IHT and Capital Gains Tax. If you have inherited cash within the last two years a Deed of Variation can be used to deflect the gift to a trust to save IHT on your estate.
Same sex couples are entitled to the same rights as married couples if they register their partnership. This is important if you wish to provide for your partner after your death.
Everyone, not just the elderly or infirm, should sign an Enduring Power of Attorney. If you become temporarily or permanently infirm your nominated Attorney (typically your spouse or family member) will be able to sign cheques on your behalf until you recover.
These days there are specialist Will Writers. However your Will needs to written as part of your overall financial planning. Langtons are able to take instructions for your Will and advise you accordingly. Do not procrastinate use our contact page for more Information about our Will Writing Service.
The Financial Services Authority does not currently regulate Wills.