There’s a high chance you have plans for what your loved ones will receive when you pass away. Perhaps you want your family to inherit some of your treasured possessions and wealth, or wish to make sure a close friend receives something to remember you by.
No matter what you have planned for your estate after your passing, it’s vital to lay them out officially so your wishes are respected, and this is where your will comes in.
A will outlines who will receive your property, money, possessions, and investments – collectively known as your “estate” – following your death.
It is essentially a tool to ensure that your estate is distributed according to your wishes.
Though, just writing a will once isn’t enough. It’s important to view it as a “live” document that should evolve as your life does. As your circumstances change, so too should your will.
But wills being updated isn’t as common as you might think. A survey from Will Aid of more than 2,000 people across the UK found that 56% of respondents hadn’t made a will at all, while 11% admitted that their wills no longer reflected their current wishes.
If you’re in the same situation, you may risk leaving your loved ones with unnecessary stress at an already difficult time.
With that in mind, continue reading to discover why it’s so vital to have an up-to-date will, and how it can help you secure some much-needed peace of mind.
If you pass away without a will, your estate may be divided against your wishes
It’s vital to remember what might happen if you pass away and don’t have a will – a situation known as “dying intestate” – as certain rules will come into play to determine how your assets will be distributed.
For example, in England and Wales, while spouses and civil partners have some specific rights, they typically won’t inherit your entire estate. If you and your partner aren’t married or in a civil partnership, they would have no automatic legal right to inherit anything at all.
The situation becomes even more complicated when children are involved. If you have stepchildren, they won’t automatically be entitled to any of your estate unless you name them in your will.
Additionally, if you had plans for your children’s care after you’re gone – perhaps choosing godparents or close friends to act as their guardians – these wishes wouldn’t hold legal weight unless you specifically mention them in your will.
Meanwhile, the rules differ somewhat in Scotland. “Prior rights” means your spouse is automatically entitled to a share in your family home up to the value of £473,000, including furniture up to a value of £29,000 and other moveable assets up to £50,000 if you have children, or £89,000 if you don’t. Then, whatever is left of your estate will be divided among your spouse, children, or other family members, according to “legal rights”.
No matter where you live, having a will in place ensures your plans are clear and legally binding, giving you confidence in knowing that your loved ones will be cared for according to your wishes.
Even if you have a will but don’t update it, you could inadvertently create disputes
While it is essential to write a will in the first place, it’s just as important to keep it updated. Life changes constantly, after all, and significant events could affect your priorities.
For instance, if you welcome a new child into the family, you may want to write them into your will as a beneficiary. Similarly, if you form a blended family when you remarry, your stepchildren typically wouldn’t be entitled to a share of your estate unless you include them in your will.
Divorce is another major life event that necessitates a review of your will. If you separate from your spouse but don’t update your will, there’s a risk that they could still inherit part of your estate.
As such, it might be wise to review your will at least once a year or whenever a significant life event occurs, to ensure it still reflects your circumstances.
Failing to update your will could also result in inheritance disputes. If the vital document doesn’t clearly reflect your wishes, disagreements may arise among your family members, which may lead to lengthy legal battles and strained relationships. This is more common than you might think, too, with research reported by Today’s Wills and Probate revealing that around 10,000 people in England and Wales contest wills each year.
In addition to keeping your will current, you may also want to have open and honest conversations with your loved ones about your decisions to reduce the likelihood of disputes.
This could help prevent misunderstandings, all while allowing you to explain some of the reasoning behind your choices. What’s more, having a GP witness your will could prevent challenges from beneficiaries claiming you weren’t of sound mind when you made your decisions.
Ultimately, keeping your will up to date secures your estate, and creates peace within your family, reducing the chances of disputes and ensuring a seamless transfer of your wealth after you pass away.
This could give you some essential peace of mind knowing that you’ve done everything possible to protect your loved ones and secure your legacy.
Get in touch
We could help you write – and update – your will to ensure it perfectly reflects your wishes for your estate after you’ve passed away.
To find out more, please use our search function to find your nearest Verso office, email us at contact@versowm.com, or call 020 7380 3300.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The Financial Conduct Authority does not regulate estate planning or will writing.