A matter of wills
(Source: Mary Barabe writing in Birmingham Mail.Net - http://www.birminghammail.net/news/special-features/2010/10/19/a-matter-of-wills-why-registering-your-wishes-makes-sense-97319-27501451/)
In these bleak economic times you could be forgiven for thinking that keeping track of what you’ve got to live on - rather than worrying about what money and assets you leave behind - is more than enough to deal with. Yet according to legal professionals, ensuring that you both make and register a will is an absolute necessity - regardless of the value of your property and assets (and the vagaries of economic growth and inflation).
Recent studies reveal that more than half of UK adults do not have a will, which means that they are risking their assets not being distributed as they wish after their death.
Why make a will?
The most important reason for making a will is to make the right provision for your family and friends. Failure to write a will can leave your loved ones with what can be a tangle of bureaucracy and a long legal battle to contend with at a time when they are least able to cope with additional trauma.
In the event that you die intestate (without making a will), there is no choice at all over how your estate is divided up. The distribution of your assets will be decided by the state, regardless of any verbal agreement you may have made with your relatives.
There is a set order of entitlement and so, for example, all that a surviving spouse may get is a proportion of the assets. If you are not married but living with a partner, is it particularly crucial to make a will to ensure that they are provided for. If you're divorced, you can decide whether to leave anything to your former partner.
Making a will enables you to legally decide who gets what and, in the case of children, when they get it. Don’t underestimate items of sentimental as well as monetary value. Any probate lawyer will tell you, relatives can - and do - squabble over the most extraordinary things.
Preparing your will
While it is possible to write a will by yourself, and make "DIY wills" online, it is advisable to use a solicitor as there are various legal formalities you need to follow to make sure that your will is valid. And with the right advice on the tax implications of your decisions, it means that your family and other beneficiaries will keep more and pass a smaller proportion to the Inland Revenue.
The cost of writing up a will can vary between solicitors and will depend on how complicated your affairs may be.
As well as solicitors, voluntary organisations such as Citizens Advice Bureau and Age Concern can also help you prepare your will.
Wills and life insurance – essential information
It is important to note that your will does not automatically change beneficiaries you have previously named in your life insurance policies, bank accounts and pension plan.
Each life insurance policy has a named beneficiary or beneficiaries. The beneficiaries named in these policies have a legal right to the money when you die. Nothing you say in your will changes that. So, for example, if you named your local dog rescue home as the beneficiary of your life insurance policy before you had children, failed to change that beneficiary designation with your life insurance company, but say in your will that you want the proceeds of your life insurance policy to be divided equally among your two children, the dog home will still get all the proceeds if you die - and your children will get nothing.
The same will apply to any a savings you have arranged with your bank as a pay-on-death account.
However, you do, of course, have a right to change beneficiaries during your lifetime. You need to contact and advise your life insurance policy provider, the bank, and the sponsor of your pension plan to change the beneficiaries in line with your wishes as specified in your will.
