Why is it important to make a Will and keep it up to date?

We all probably realise that we should make a Will. The problem is that it’s far too easy to put it off and save it for another day, especially when you’re young. Making a Will is something you tend to think about as you get older, but the truth is, we should all make one, not just for our own peace of mind, but also for the financial stability and future of our families or business. If you were to die without making a Will, then your assets may be distributed by a court rather than in accordance with your wishes. So, what exactly is a Will, and who should make one?

What is a Will?

A Will is a legal document that comes into effect on your death. In it you can set out both who will benefit from the estate, and who shouldn’t, as well as who should administer your estate and personal affairs. Making a Will speeds up the administration process and can ultimately reduce the costs, by making provision for an unmarried partner, helping preserve assets which could otherwise be used to fund care home fees, setting out your funeral wishes, and looking after the needs of minor children. If you die without making a Will, that is, you die intestate, then a court will determine how the estate should be distributed and this can be both complex and costly.

Who should make a Will, and why does it need to be updated from time to time?

Ideally everyone over the age of 18 should make a Will. However, having done this it’s important to keep the Will up to date and relevant as your circumstances change over time. What was relevant when you were young won’t necessarily remain as important if you were marry, co-habit, divorce or have a family.

• Getting married – when a person gets married any pre-existing Will is automatically cancelled, unless the will specifically states it has been made in contemplation of that marriage. If it doesn’t state this, or there isn’t a Will, then the rules of intestacy will apply in the event of death and a spouse or civil partner may only receive a proportion of the estate as determined by the courts.
• Cohabitation – unmarried partners unfortunately do not benefit under the rules of intestacy. Any person who co-habits with another will therefore need to make a Will to guarantee that the other person benefits from the estate after your death.
• Getting divorced – the effect of a divorce on a Will means that any gift to a spouse or civil partner fails, but only when the decree absolute has been made. Therefore, if you have separated from your spouse or civil partner, you should amend your Will so that they don’t benefit from your estate should anything happen to you before your divorce is finalised.
• Becoming a parent – if you’re a parent, or are to become one, you should amend your Will to make sure your child or children will be looked after in the event of your death.  If you don’t specifically spell this out, and an agreement can’t be reached, your child or children would be subject to court proceedings. The court would then decide who your child or children should live with.
• Receiving a windfall – if you come into money, whether through an inheritance, a lottery win or gift, your estate may be subject to an inheritance tax liability. A properly constructed Will can minimise an inheritance tax liability for future generations.
• Owning a business – you’ll need to make provision for your business to be wound up or sold following your death.