According to figures from the 2023 National Will Report, only 44% of people in the UK have made a Will, but if any of the factors below apply to you, it’s really important to have a valid, up-to-date Will in place to make sure your estate and assets pass to the people you actually want them to go to, and to ensure your family does not miss out on their inheritance.
You are buying a house or own a house
Although you are not legally required to have a Will when buying a house, it makes sense to create a Will if you are buying a house or you are already a homeowner, because owning a property means that you have an asset that is likely to increase in value. If you want to ensure that your property assets pass to your family when you die, then you need to have a Will in place.
You might also be able to reduce the amount of inheritance tax you have to pay on the property if you have a Will in place, as the value of the property can increase the total value of your estate so that it is above the current £325,000 threshold for inheritance tax.
You can also use a Will to reflect your wishes about how you want to pass on your share of the property on your death. If you jointly own the property with your partner or spouse as ‘tenants in common’ then should one of you die, their or your share of the property will not automatically pass to the survivor unless you have a Will that states that these are your wishes.
You have a pension
Unlike other assets such as property, investments and savings, your pension does not form part of your estate when you die, which means it isn’t covered by your Will. However, if you decide to leave your pension to somebody when you die and don’t complete an ‘expression of wish’ or ‘nomination of beneficiaries’ form indicating who you want to leave it to, pension scheme administrators will review other information such as your Will to try and establish who should inherit your pension.
You have children
Making a Will if you have children means that you can ensure that your family will be provided for on your death, and your estate will be divided up the way you want it to be. A Will can also be used to appoint guardians for your children, as if both parents die and you have not outlined who should act as a guardian to your children in your Will, then the courts or local authority could end up deciding who should look after your children.
Additionally, if you have any step children or foster children that you would like to pass part of your estate to then unless you make a Will outlining this, they will not inherit anything.
It is worth noting that if your children have godparents, they have no legal right to automatically become your children’s guardians after you die, unless you state in your Will that you want this to happen.
When making your Will, you might also want to think about what age you want your children to receive full control of their inheritance. Children usually receive access to their assets at 18, unless otherwise stated in the Will. Before the age of 18 they can still benefit from their inheritance, but the assets will be held on trust and managed by a trustee, therefore it is also worth considering who you want to appoint as trustees.
You have a partner but aren’t married, or you’re getting remarried
If you have a partner but are not married, they will not be entitled to anything from your estate, regardless of how long you’ve been together unless you name them in your Will.
If you get remarried, then your previous Will is automatically revoked and is no longer valid. Unless you have expressly mentioned your intended marriage in your previous Will, or you draw up a new Will to reflect your second marriage then the following intestacy laws will apply:
- You were married with children (from either or both marriages)-your surviving spouse will receive the first £322,000 of the estate and all personal chattels, with the remainder divided equally between your spouse and children in equal shares to be held in trust until they are 18.
- You were married but do not have any surviving children, grandchildren or great grandchildren-your entire estate would pass to your surviving spouse.
To ensure that any children from your previous or new marriage inherit part of your estate you need to make a new Will that includes provision for your children from a previous marriage and your current relationship.
If you need further help and advice about updating a Will or making a Will, contact our Wills and Probate team on 03456 465 465 or email enquiries@rotherabray.co.uk
Disclaimer: This blog is for information only and does not constitute legal advice. If you need legal advice, please contact us on 03456 465 465 or email enquiries@rotherabray.co.uk to get tailored advice specific to your circumstances from our qualified lawyers.
