Many lessons have been learnt as a result of the recent COVID-19 pandemic, not least the importance of putting in place an up-to-date Last Will and Testament before it’s too late. Being forced to face one’s own mortality has already prompted thousands of us to take legal steps to ensure that our loved ones are adequately provided for in the event of our unexpected death.
Why is having a Will important?
In so many cases, people have no Will at all, or have a Will in place but one that’s out-of-date.
With modern day families, where second marriages and children from previous relationships are commonplace, the provisions of any existing Will can easily fail to reflect your current personal circumstances. Even though for inheritance purposes, your ex-spouse or civil partner will be treated as if they’d died when your marriage or civil partnership was dissolved, nonetheless, some or all of your estate could then be treated as if you don’t have a Will at all.
By failing to leave a Will, or where your estate is treated as if a Will didn’t exist, under the strict rules of intestacy, your loved ones may be left with nothing. The rules provide that any current spouse or civil partner will automatically inherit all your personal possessions, plus any money or assets up to the value of £270,000, together with half of your remaining estate. The other half will be divided between any children, grandchildren or great grandchildren.
The law in England and Wales essentially means that if your estate is valued at £270,000 or less, the whole estate will pass to any surviving spouse or civil partner, without financial provision for your children or any other dependants. The rules also mean that any unmarried partner, even if you currently live together, will miss out altogether on any intended legacy.
What does a Last Will and Testament do?
A Will is a formal written document setting out how your money, possessions and property, ie; your estate, should be distributed after you die, and in accordance with your wishes. Making a Will is especially important if you have children, or any one else who depends on you financially, or if you’d like to leave something to someone outside of your immediate family.
If you die intestate, everything you own may be divided up in a way that doesn’t necessarily reflect what you’d want, without making any financial provision whatsoever for those that you would otherwise have wanted to benefit from your estate. In the absence of a well-drafted or up-to-date Will, your family may also find themselves facing a significant inheritance tax bill, a liability that potentially could havebeen minimised through the effective use of tax planning tools.
By seeking expert legal advice from a specialist in Wills, trusts and estate planning, you can carefully consider the contents of your Will — making provision for your family in the context of their financial circumstances —and ensuring that your final wishes are met.
Legal disclaimer
The matters contained herein are intended to be for general information purposes only. This blog does not constitute legal advice, nor is it a complete or authoritative statement of the law in England and Wales and should not be treated as such. Whilst every effort is made to ensure that the information is correct, no warranty, express or implied, is given as to its’ accuracy, and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should always be sought.