If someone dies without a valid will in place, it falls to the rules of intestacy to decide how the content of an estate are to be divided. An estate includes everything a person owned, including property and its contents, money, investments, cars and other personal possessions.
Making a Will isn’t just about ensuring your assets and possessions are distributed as you would wish, it also gives you the opportunity to make other important decisions. These include the opportunity to choose who administers the estate or who will become the legal guardian of any minor children.
Here are 5 key considerations when making a will.
Make decisions carefully
For some individuals and couples, the decision regarding who will inherit their estate is fairly straightforward. However, with second and subsequent marriages now commonplace, family relationships can often be more complicated. It is worth considering that contested wills are on the increase, with a growing number of family members choosing to challenge the contents of a family member’s will. To avoid this happening, consider your options very carefully. You should also ensure that your will is clearly and concisely written to avoid any misinterpretation.
Be aware of the rules
For it to be valid, a will must be in writing and you must sign it the presence of two independent witnesses, who must also sign the document. It’s important to note that any beneficiary of the will cannot act as a witness.
Another important consideration here is mental capacity. If it could later be proven that an individual lacked the mental capacity to understand the contents of a will and its consequences, the will could become invalid.
Having a solicitor draw up your will avoids the potential for you to accidentally or inadvertently break any rules.
Keep it up to date
Making a will is one thing, but keeping it up to date and in line with your current situation is another. There are several instances that may result in a need to review your will, including a change in your relationship situation, property ownership or becoming a parent of guardian.
Consider gifts
Inheritance Tax can be a significant consideration, with everything over any above the threshold being subject to taxation at 40%. In order to mitigate this and help reduce the level of tax payable, it is worth considering the rules around gifting. Each individual has an annual gift allowance of £3,000 a year. Larger gifts can also be given, although these will only pass out of your estate after seven years.
Resolve other matters
Clients often find that the process of making a will with a solicitor a very useful one. Making a will involves a general review of an individual/couple’s personal circumstances, which can lead on to uncovering and addressing other issues that may affect them.
If you would like to discuss making a will with our team, please contact Rebecca on 01457 761320 or email Rebecca@odonnellsolicitors.co.uk.
We are able to take instructions over the phone or in person, and can also visit clients at their homes.
Rebecca O’Donnell is Head of Private Client at O’Donnell Solicitors.
