Statistics show that about 30 million people in Britain still don’t have a will – about 70% of the adult population according to Unbiased.co.uk, a Financial Advisor’s website.
So why is it so important to have a will?
There are a number of reasons and, perhaps, one of the most obvious, is that at a time when your relatives and dependants are grieving, having a will makes life easier for them.
If an individual dies without a valid will, their assets will be distributed according to the law and not according to the deceased’s wishes. Two high profile cases which highlight this issue are those of Jill Dando and Stig Larsson, the author of The Girl With The Dragon Tattoo. Both died without leaving a will and their estates were therefore inherited by their fathers and not by their partners. Of course, this may have been their wish but the advantage of a will is that it would have been quite clear what their wishes had been.
If you are married with children, one might assume that all the deceased’s assets would go to their spouse on death. However, it is worth noting that, in England and Wales, if the estate is worth more than £250,000 the spouse would only get the first £250,000 and a life interest in half of the remaining estate, which means that they will not be able to dispose of it or spend it but they are entitled to the interest. The remainder of the estate would go to the children. However, if the estate is worth less than £250,000 the children would get nothing.
Even more startling is that, if you are not in a civil partnership or married, your partner will not inherit at all under the intestacy rules. Following a similar theme, if you have separated but not divorced, your ex-partner will inherit the first £250,000 of your estate under the law. If you do not have children or are single, various family members can take their share of the estate and, if no-one claims it, then the Government takes everything.
Tax planning is the other important issue. Inheritance Tax is currently 40% but it is known as the “voluntary tax” because, in reality, it is often possible to get out of having to pay it with proper planning. Anyone who dies with total assets of more than £325,000 could leave their family with a tax liability but if you leave your assets to your spouse or civil partner, no tax is payable. Also if you want to avoid tax and leave money to your children, legal advice can be sought about setting up a Discretionary Trust.
When the overall costs of making a will are taken into account - relative to the assets that it will deal with - it remains a puzzle as to why more people do not make wills. November is Will Aid month when more than 1,000 solicitors across the country, including FDC Law, will draft wills in exchange for a charitable donation. Will Aid is another example of promotions which take place to try and highlight this issue to the wider population.
At a more local level, FDC Law, are continuing to help people understand the issues at hand and, most recently, Darrell Collins, partner with FDC Law, attended a “Goodwill Event” at St. Francis’ Church in Keynsham, where she spoke to an audience about the issues involved in drawing up a will.