Why Make A Will?

It is a well known fact that a very large percentage of people have not made Wills — and that of those who have, many will be out of date for one reason or another. If you do not have a Will, or if your circumstances have changed since you last made one, maybe now is the time to think about it.

Many people think that making a Will is difficult, but in fact normally it is quite straight-forward and relatively inexpensive. Making a Will could even save you — or rather your beneficiaries — money in the long run, by helping to reduce any Inheritance Tax payable (although this will depend on individual circumstances).

The main reason for making a Will, however, is to spell out clearly who you wish to benefit from your estate when you die. Although this may sound obvious, if you were to die without making a Will then the law sets out who gets your estate and it is quite likely that this will not accord with your own wishes. In an extreme case, if there was no family, everything could even go to the Government.

Unmarried couples are particularly vulnerable if they do not make Wills because there is currently no automatic right for them to inherit anything from each other.

If you have young children you could appoint a guardian for them to ensure that they are looked after. Other particular occasions when you should consider making a Will or changing your Will are if you marry — in which case any Will previously made will automatically be revoked — or if you have been divorced since last making your Will.

Inheritance Tax Issues

Something people also need to be aware of is whether Inheritance Tax will have to be paid on their death. As a result of increasing house prices in recent years, many people who thought Inheritance Tax was not an issue for them should reconsider. The Government recently increased the point at which Inheritance Tax starts, but only to £312,000 — Inheritance Tax is charged at 40% on everything above this amount.

Making a Will can sometimes help save some of the tax that may be payable, although this will very much depend on individual circumstances. Certain gifts — such as those to your spouse or to charity — are exempt from Inheritance Tax, and so the tax bill could be reduced in this way.

Unfortunately it cannot be guaranteed that any arrangements you put in hand now will still remain tax-efficient at the time of your death, because the Government does change the law, or its interpretation, from time to time. It is therefore important that, once you have made a Will, you regularly keep it under review.

So don't delay — call today and make your Will. Either of our offices will be pleased to help.