It can often be difficult to approach the discussion topic of death, including making important future provisions such as drafting a Will. However, making a Will is a vital part of securing the future of your estate and assets after you pass, and it will ensure that they are distributed according to your wishes.
Furthermore, it makes what is likely to be a difficult time for your loved ones a lot less stressful. This is because if an individual passes away intestate (without a Will) the process of distributing their assets becomes far more complex and can often result in disputes between family members and friends.
Wills are hugely beneficial for providing financial security for your loved ones when you are no longer able to, ensuring your final wishes are respected, reducing inheritance tax and preventing contentious probate, which is the often stressful process of resolving a dispute over a deceased individual’s remaining estate.
Here we take a look at three crucial considerations to make when drafting a Will, including what should be included in a Will, whether efficient planning can reduce inheritance tax and if you need a solicitor to draft a Will.
1.What should be included in a Will?
Assets, debts and liabilities
When making a Will, it is essential to establish your assets or, in other words, plan precisely what needs to be included in your Will, considering everything you own. You’ll want to be aware of all assets you have in your name.
Examples of what a common estate would consist of are:
- Property (whether single or jointly owned)
- Assets held in trusts
- Physical possessions, for example, cars, jewellery, furniture, etc.
- Debts and liabilities
- Businesses
- Foreign property – whether a foreign Will may be necessary
- Investments
- Savings
It is highly recommended that you work with an experienced Will solicitor when compiling all of your assets as attention to detail is vital when doing so. A solicitor will make sure that no stone goes unturned when it comes to your estate. They will also handle the more complex aspects of the process, including any complicated documentation that is required.
Beneficiaries
Who do you wish to benefit from your wealth after you pass? Should they receive their inheritance outright or would a trust be more appropriate?
Choosing who you wish to benefit from your estate is an important decision, particularly as life circumstances can change in the future. Most individuals will choose their spouse, partner, children or another close relative to inherit from their estate.
Keeping beneficiaries in mind, you will also need to clarify how the estate will be divided between the beneficiaries if you have more than one and what you would like to happen should they predecease you. There may be a particular individual you promised would receive a specific thing when you pass. Should this be the case, you will want to clearly state this within your Will.
There may be other points to consider in regard to beneficiaries, including:
- Estranged children – could they claim against your estate
- Children from previous relationships
- If your spouse remarries and disinherits your children
Executors
When drafting your Will, an important consideration includes who you would like to act as the executor of your estate. The person or people you choose to carry out this task will have a considerable responsibility and be required to handle all matters involving your estate once you have passed away; this includes valuing the estate, paying inheritance tax, gathering assets, paying debts and distributing assets to beneficiaries.
It is wise to consider appointing an individual or multiple persons you trust to handle this complex role. You can also choose to select a solicitor to act as your executor.
Financial dependents
Many people have individuals who financially depend on them, whether this is children under the age of 18 years, those who suffer from learning difficulties, those who have disabilities or something else, all of which can affect their ability to earn reasonable finances to support themselves. Other dependents could include a spouse, civil partner, grandchildren, etc.
If you die without providing sufficient financial support for a dependent, they may be eligible to claim against your estate under The Inheritance (Provision for Family and Dependents) Act 1975 if they feel like they have not been adequately provided for. Consider leaving any dependents a reasonable inheritance to avoid contentious and emotionally charged proceedings.
2.Can efficient planning reduce inheritance tax?
When making a Will, it’s paramount to consider the inheritance tax your estate might be liable to settle after you pass. Without a Will, your estate will be distributed according to intestacy laws, which may be subject to inheritance tax that could be avoided. A Will can act as a means to reduce the amount of inheritance tax due when efficiently planned with the assistance of a legal professional.
When you die and your estate is valued over the nil rate band, which currently stands at £325,000, the estate may be liable for paying an inheritance tax of 40%. However, there are ways of reducing the amount of inheritance tax your estate is subject to paying, and a Will and the support of a knowledgeable solicitor can assist you in doing this.
Without a valid Will in place, there is no guarantee that inheritance tax can be reduced or avoided altogether.
3.Do you need a solicitor to draft a Will?
Simply speaking, there is no legal requirement for a solicitor’s support when drafting a Will, but we encourage clients to consider seeking legal advice.
There are ways you can make a Will without paying for the assistance of a solicitor. For example, there are many online will writing services and DIY Will services. The problem with these Will writing methods is that they can often disregard important factors, including how to reduce inheritance tax and the complex provisions some estates often have, particularly those with higher net worth.
At Henriques Griffiths, our solicitors have a substantial level of expertise and skill and in-depth knowledge in Will writing matters and can provide the specialist support you require to ensure your estate is tax efficient and meets the needs of your loved ones.
Contact our Wills and Probate Solicitors in Bristol today
For expert legal advice on Wills and estate planning or practical support through an estate administration, speak to one of our Wills and Probate solicitors now by contacting your local Henriques Griffiths office in Bristol or Winterbourne, or you can use our simple enquiry form to ask a question or request a call back.
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