September 2005

Making a Will

Nobody likes to think about their own death but to ensure that your last wishes are carried out and prevent them being subject to challenge, it is necessary to consider the importance of making a Will.

Reasons to make a Will

If you choose not to have a Will, or your Will proves to be invalid, your property, money and other assets will pass according to fixed rules known as the intestacy laws and the danger is that you may find that persons you want to benefit will miss out.

Intestacy laws provide, amongst other matters, that if you are married and hold all your assets in your sole name your spouse will inherit the first £125,000 and a life interest in half of your remaining assets which will revert to your children on your spouse's death. The other half will be divided between your children. If you have no children, your spouse will inherit £200,000 and half of your remaining estate. The other half will be divided between your parents and if they have died it will be divided between your brothers and sisters. If you have children a guardian can be appointed to look after them if you or anyone else with parental responsibility die. It is also vital that you keep your Will up to date as your circumstances frequently change and your Will needs to reflect this.

An unmarried couple are disadvantaged by the intestacy law in that a partner will have no legal status or automatic right to benefit and any claim they make will need to be made through the Court. Even this claim is subject to the fact that they must have lived with you for two years prior to their partner's death.

A further reason for making a Will is to reduce Inheritance Tax implications. The threshold of Inheritance Tax currently stands at £275,000. This means that the value of an estate over and above that level will be taxed at 40%. By seeking advice and making a Will, it is possible to benefit from tax savings. An estate passing wholly to the surviving spouse will be tax free and likewise legacies to charities.

Is Legal Advice Necessary?

There are a number of DIY Will packages available from high street shops and also on the internet. However, you need to ensure that all your needs are catered for, some of which may come to light having sought legal advice. A solicitor can also ensure that the Will is drafted correctly and one which cannot be challenged after your death. The preparation of a comprehensive Will requires knowledge of the law, property, trusts, tax, and many other important issues. A Will is one of the most important documents you prepare and it is therefore vital that you get it right.

Baily Gibson offers a cost efficient and professional service in a friendly and supportive manner. We aim to fulfil your wishes and cater for all your needs at every stage.