According to the 2024 IRN Legal Wills and Probate Consumer Report, only 36% of adults in the UK have a Will, which is incredibly low given the benefits of Wills. Here’s 10 basics on Wills.
- Who inherits – Without a Will, UK Intestacy Rules apply which doesn’t necessarily mean your spouse would inherit your whole estate. To ensure your estate goes to exactly who you want, in the portions you want, it is a good idea to have a Will.
- Reduction of Inheritance Tax – Currently, once your estate is above a certain threshold, UK Inheritance Tax is charged at 40%. If a Will is carefully drafted (e.g. using trusts and memorandum of wishes), this can reduce or eliminate Inheritance Tax.
- Charities – Estates left to a registered charity are not subject to Inheritance Tax. Additionally, if you leave 10% of your estate to a registered charity, then the Inheritance Tax rate on the remaining estate falls to 36%.
- Custody of children – If you have minors, you can provide in your Will who will obtain custody of your children, should you die.
- Care for pets – You can appoint a guardian to look after your pets and although you cannot leave your estate directly to your pet, you can leave part or all your estate, in trust, to be used for the care of your pet.
- Funeral arrangements – You can set out, in a Will, what you want your funeral arrangements to be, from, what type of flowers you want to whether you want to be buried or cremated. But note that instructions on your funeral arrangements are not legally binding. Instead, funeral arrangements in your Will are a guide for the executor who ultimately has the final decision. However, last wishes are usually respected.
- Think outside the box – US comedian, Jack Benny, famously stated in his Will, that one red rose was to be delivered to his wife every day for the rest of her life. So why not be the romantic from beyond – all it takes is Will power!
- Debts do not die with you – Any debts must be paid out of your estate when you die so are not written off on death. This means that sometimes the debt can be more than the assets in the estate, so the estate becomes bankrupt.
- Incapacity decisions – In your Will, you cannot appoint someone to make decisions for you if you lose capacity, as a Will is only enforced once you are dead. You, therefore, need to make and register a Lasting Powers of Attorney to deal with making decisions if you become incapacitated.
- Sensitive information – Do not put any sensitive information (like passwords to access digital assets) in your Will. Instead, provide a separate list of passwords directly to your executor. This is because, once probate has been issued, your Will is a public document.
Next Steps
If you’d like help with your Will, please book an initial appointment using the link at the top of this page.
