The Importance of Making a Will
In their third article for Family Time Magazine, Marie Tisdale, Wills & Probate Partner at Staffordshire law firm Ansons explains why it is important to have an up-to-date Will in place.
It is easy to put off the planning of your future affairs, whether you are young and carefree or enjoying your retirement. People don't generally like to think about dying, but
it is important to consider what the implications would be for your family and friends.
The legislation that governs the passing on of your estate to your chosen beneficiaries requires you to plan well in advance and to regularly review your arrangements. Dying
without making a Will can mean a great deal of stress, paperwork and worry are left behind for family members to deal with. It could also mean that your assets are distributed according to the law rather than your wishes, potentially meaning that your partner receives less, that the money goes to family members who may not need it, or that you fail to maximise the tax saving opportunities available.
It is a misconception that couples who are unmarried or not in a civil partnership will automatically inherit when their partner dies. This is not the case and it is vital to make formal provision for your partner in a Will so that your wishes are carried out.
Matters can become even more complicated when there are extended families to consider as a result of second or third marriages, which are increasingly common. Without a Will, disputes over dividing assets between children and step-children can be lengthy and have the potential to cause bitter family feuds in the future, but this could be avoided with some forethought and planning.
A Will is also a vital tax planning tool to ensure that you maximise the tax planning opportunities available. Although the level of tax free inheritance has recently increased to £312,000 for the 2007/2008 tax year there are a number of options available which can help to reduce the effects of inheritance tax above this level. Investing into life assurance bonds via discounted gift trusts or loan trusts, taking out life insurance cover or using annual gift allowances can all help. Your solicitor should be able to recommend an Independent Financial Adviser who can assist in such matters.
Equally important, by having a Will you can determine who will handle your affairs after your death and who will act as guardian for any minor children you have if they are left without a surviving parent. You can also use your Will to express your preferences for burial or cremation and for donating organs or your entire body for medical purposes.
You also need to consider updating your Will should your personal circumstances change. This can include getting re-married, having more children or grandchildren, if you have separated or divorced, or even if your financial situation has changed. You should therefore review your Will regularly to reflect any major life changes, preferably every five years or so.
For further information, please contact Marie Tisdale of Ansons on 01543 263 456
or email mtisdale@ansonsllp.com or visit www.ansonsllp.com
