There is a misconception that wills are only for the wealthy or the elderly but if you have dependants and you own any assets, you really should have a will.

There may be a bit of a psychological barrier to them for many of us – we don’t like talking about death, after all. Perhaps that’s why 56% of people in Britain don’t have a will (according to a recent survey carried out by Opinium on behalf of Brewin Dolphin). If you die without one, you could create a lot of extra headaches and heartache for those you leave behind.

WHAT HAPPENS IF YOU DON’T MAKE A WILL?

In short: your assets could go somewhere you don’t want them to, your estate could be difficult to administer and may attract a big tax bill, and a family rift could ensue if someone contests your will.

If you die without a will, it’s called ‘intestacy’. When someone dies intestate, the Government effectively writes a will for them, explains Nicola Plant, partner at Thomson Snell & Passmore. ‘Intestacy provisions specify how your estate passes if you die without a will. However, they may not be in line with your wishes and can also be inheritance tax inefficient,’ she warns.

If you’re married and there is no will, your spouse will only get the first £270,000 of assets in your name when you die.

If you’re separated or divorced, your ex could make a claim against your estate in the absence of a will.

A will can protect unmarried partners and avoid a costly legal battle to ensure the surviving partner inherits the assets.

‘Unmarried couples have no right to automatically inherit assets from a deceased partner. If a will has not been left, assets could be left to children or other family members,’ explains Emma Woollard, wills, trusts and estates partner at Prettys Solicitors. ‘A cohabiting partner may then have to go to court to benefit from the estate.’

PROTECTING YOUR DEPENDANTS

Wills aren’t just about your assets, they can also specify who should become guardian of your dependants if you die while they are minors. You can also use a will to make provision for everyone in a blended family.

The law doesn’t recognise stepchildren in the same way as biological children so having a will ensures all family members are included.

THINK ABOUT TAX

Tax planning is a huge factor in the importance of wills. When you pass away, HMRC wants to know the value of your estate for inheritance tax purposes, and that is something you can’t change once you are gone.

But you can minimise your tax burden by including your spouse in your will, and ensuring assets that have tax relief, such as business property relief, are treated properly, advises Christine Thornley, head of wills, trusts and probate at Gorvins Solicitors.

Ian Dyall, head of estate planning at Tilney, gives the example of one couple who were both widowed and had remarried who legitimately saved £260,000 in tax by capturing four nil rate bands (including those from the deceased partners) worth £1.3m. ‘If you are not careful, the way a will is drafted may prevent you taking advantage of tax opportunities,’ he says.

REVIEW YOUR WILL AND WATCH YOUR WORDING

A will is a living document, which means you should revise it as your life and relationships change or your family grows. You should keep the wording up to date in case it refers to an asset you have since sold, for example.

‘A common thing people do with a DIY will is saying they have a house to leave to this person, and money in this particular bank to leave to that person,’ explains Thornley. ‘But when they die they might not own that house, or they might have the money in a different bank and they haven’t referred to it as they haven’t done the will properly.’

CHOOSE YOUR EXECUTORS CAREFULLY

An executor is someone who you nominate to carry out the wishes in your will. It can be an onerous duty, so you may choose to appoint a paid professional instead of a friend or relative.

They may need to notify the authorities of your death, pay off debts and funeral costs, deal with inheritance tax and distribute your estate to your beneficiaries.

You will usually need to nominate two responsible people, who may also be required to administer trusts on your behalf as trustees.

‘The choice of executor is important – you might appoint a son and daughter who hate each other and argue about everything so the estate can’t be administered and it costs a lot of money. You have to think about who will be able to deal with it efficiently,’ says Thornley.

DON’T CUT CORNERS TO CUT COSTS

Many people choose to cut the cost of a will by using cheap will-writing services or doing it themselves. But there can be pitfalls: for example, some will-writing companies name themselves as executors of your will, and bill your estate for the work. A DIY will could also be invalid from being incorrectly worded or witnessed.

‘If you are going to do it, use a will pack,’ says Dyall. ‘I’ve seen a lot of people try to draft their own wills and the wording is non-specific, you can’t work out what they want to happen. Confusion in wills leads to family arguments which can be drawn out through the courts, so DIY wills are a false economy.’

Using a solicitor means you are covered by the Ombudsman scheme in case you need to make a complaint, plus the fee may include keeping your will in fireproof storage. If cost is a factor, schemes such as Free Wills Month and Will Aid can get you free or discounted wills through participating solicitors.

TAKE EXTRA CARE WITH COMPLEX AFFAIRS

If you own unusual or overseas assets or your financial affairs are quite complicated, a will is vital. ‘If you have less commonly held assets, such as shares in private companies, foreign land or an interest under a trust, it is even more important to get expert advice,’ says Plant at Thomson Snell & Passmore.

If you have a beneficiary who is not capable of handling money because of addiction or disability, or who would lose their benefits if they received a sudden windfall, a solicitor can help you set up a managed trust so you can give them gradual financial support.

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