Where there’s a will

Mar 7 2009 by Iain Laing, The Journal

Lucie Scott

WITH property prices falling, the stock market in decline and even cash at the bank at risk, many people feel their personal finances are particularly exposed. In these troubled times, is there any need to have a will?

The answer for most adults is a definite yes. First and foremost, having a will lets you decide exactly how your money or property will pass after your death.

Many people incorrectly assume that if they die without a will, their partner will automatically inherit everything. In fact, even if you are married, or in a civil partnership, there are limits on what your partner would inherit in the absence of a will. Instead, the Intestacy Rules apply, which may well put in place provisions that you would be extremely unhappy with.

These same Intestacy Rules also provide that children inherit at the age of 18. Many people believe that 18 is too young to inherit a substantial sum of money. Making a will lets you decide the age at which your children or other chosen beneficiaries inherit.

Speaking of children, have you considered who would look after them if you die before they turn 18? If you have parental responsibility, you can use your will to appoint an appropriate person to be their guardian, which can reduce trauma at a very difficult time.

In the current economic climate, people are even more inclined to look for ways to save money. DIY will packs or internet wills may be cheap, and as a result appear particularly attractive at present. However, a lack of understanding of the law may open your will to challenges after you die. Any mistakes made are unlikely to reveal themselves for many years, by which time it will be too late to go back and correct them. So whilst you saved the cost of having your will professionally drawn, the consequences could be a loss to your family of tens of thousands of pounds!

A solicitor specialising in this area of law can guide you through the various pitfalls and explain the options most suitable to your circumstances. Such solicitors train for many years and they can make sure that your will protects your assets from the payment of inheritance tax or care home fees. Your will can include certain safeguards in case, when you die, a beneficiary is in the midst of divorce proceedings or has gone bankrupt. A well-drafted will can also provide protection in the case of second marriages.

Don’t simply prepare a will and then forget all about it. In this day and age, circumstances and the law can change very fast so you should review your will regularly, to make sure it stays up to date.

Finally, don’t forget, a well-drafted will is a valuable investment for your loved ones.

Lucie Scott is a solicitor at Dickinson Dees in the wealth management department, specialising in wills, trusts, lasting powers of attorney and asset protection.