Reasons to make a Will?

Reasons to make a Will

It is very important to make a Will. If you die without one, the way your money, property or possessions are distributed may not be what you would have wished or intended. By making a Will and keeping it up to date you obtain peace of mind.

Choose the beneficiaries of your estate

Without a Will, inadequate provision may be made from your estate for your intended beneficiaries under the Intestacy rules (see separate information guide). Although it is often assumed that a spouse or civil partner will inherit everything in the absence of a Will, this is not the case where there are other surviving close relatives. In addition, a cohabitee will not benefit under the intestacy rules at all (even if he or she is a long-term partner); nor will charities.

Minimise inheritance tax

Everyone has an inheritance tax (IHT) nil-rate band (currently £325,000) and assets falling within this band may be left tax-free on death. In addition, gifts to particular people (e.g. spouses) and gifts of certain types of assets (e.g. business property) may qualify for IHT relief. By making a Will you can arrange the distribution of your estate to maximise the benefit of any applicable exemptions and reliefs.

Taking care of your pets

People often worry about what will happen to their much-loved pets if they were to die. You can stipulate in your Will who you want to look after your pets and any allowances you want to make available for their care and upkeep.

Make provision for your funeral arrangements

Some people may have particular wishes as to their funeral and making a Will provides a good opportunity to record these.

Select your executors

Your executors have a vital role in the administration of your estate. In addition, they may act as trustees where assets are left on trust by your Will. By making a Will you have the opportunity to select the most appropriate people to fulfil these tasks and reduce the risk of conflicts arising.

Appoint guardians for your children

If you have children under 18 it is advisable to appoint guardians for them should both you and their other parent die while they are still young. If you haven’t named guardians in your Will, the decision about who will care for your children could end up being made by a court.

You may avoid family disputes

As mentioned above, without a Will your estate will be divided up and distributed according to the intestacy rules. The distribution is based on how closely they are related to you, with no weight given to the quality of the relationship you had with them. As a result, a relative who you haven’t spoken to for years may receive the same amount as a relative who has helped to care for you on a daily basis. Situations like this can cause friction between family members, and can easily be avoided by preparing a Will.

Leaving donations to a charity or favourite political party

Many people choose to leave some of their wealth to a nominated charity when they die. This can have two benefits: supporting a good cause and potentially reducing the amount of IHT paid by your family if you leave more than 10% of your assets to a qualifying charity.

Protect your estate

You can protect your estate from potential claims in the event of a beneficiary’s bankruptcy or divorce, or if he or she requires paid care, by providing in your Will for his or her inheritance to be held in trust. A trust may also be appropriate if you wish assets to pass down to particular people after the death of the initial beneficiary.

Minimise administration costs and delay

Making a Will can help avoid the expense and delay which may result from an application of the intestacy rules.

Review of Will

Finally, once you have made a Will it is important that it is reviewed regularly to take account of changes in your circumstances or in tax law. Remember, in particular, that marriage or civil partnership can automatically revoke a Will and divorce may also affect how a Will operates.

Disclaimer: This briefing is intended to highlight issues only for the purposes of general interest and is not intended to be a comprehensive statement of the law. Although we have taken care over the information, you should not rely on it as legal advice. We do not accept any liability to anyone who does rely on its content. Last updated February 2024. Grange Legal Limited is a private limited company with registration number 15342472.