Why make a will and what happens if you die intestate (leaving no will)?

It is not obligatory by law to prepare a will for yourself and it is an easy task to put off. However, many problems can arise if you die without leaving a valid will.

Contents

Deciding who inherits
Inheritance Tax
Appointing Legal Guardians for your children
Setting up Trust for children
Charity Donations
Funeral Arrangements
Problems for those left behind
Laws of Intestacy

If you do not have a will the government will decide who inherits your possessions, property and money. Who inherits your estate will be decided by the Law of Intestacy (1925) and as you can imagine they are unlikely to divide your assets in the way you would choose. Under the Law of Intestacy if you are unmarried and have no close relatives your Estate will automatically pass to the Crown (government) if there is no valid Will in place.

By making a will you can decide exactly who gets which assets and how much. This could be almost anything from personal belongings to pets or property. You will also help avoid unnecessary arguments amongst family members or relatives, that often arise when a deceased persons wishes are not made clear.

Inheritance tax is the tax you pay on your estate. In simple terms this is everything that you own at the time of your death, once you have taken away anything that you owe.

Writing a will allows you to greatly reduce the amount of inheritance tax you pay or even eliminate it altogether. Certain things can be given to particular people and organisations without inheritance tax being charged on them. This then allows you to provide more money for the people you want to receive it rather than paying it to the taxman.

If you have children who are below the legal age to live alone, preparing a will is especially important. In your will you can appoint specific guardians to care for your children in the event of your death. If you fail to do so the authorities will do so on your behalf, in the way they see fit. Often they do not choose the people you would have personally chose to care for your children. This can be distressing for the children, as well as other family members, at a particularly difficult time. In some situations this means that a partner (who you are not married to) is not granted guardianship, even though they are the natural father.

It is a good idea to set up a trust for your children’s inheritance as it allows you some control over your money once you pass away. It is possible for you to lay down certain terms to help protect assets from youthful irresponsibility.

This is particularly useful when making long term financial provisions for handicapped children.

Included in your will can be a legacy you wish to leave to particular organisations or charities. This could be a specific amount of money or even a valuable item, for example a piece of jewellery. Alternatively you could leave a contingent bequest. This is the legal term for a gift left in your will that depends upon the occurrence of an event which may or may not happen. Please note that any legacy you leave will be free from tax.

By making a will the desired recipients of you assets gain access to them far more quickly than if there is no will in place. This means that they can use any money you have set aside for funeral costs or inheritance you have left them to pay for the arrangements, without having to use their own money.

Within your will you can make known your wishes. For example, whether you want to be buried or cremated, where you want the funeral to take place, and any specific hymns or readings you would like included.

By not preparing a will you invariably will cause difficulties for those you leave behind, at a time which is already distressing.

If you die leaving no valid will your estate will be distributed in accordance with the laws of intestacy. The flowchart below illustrates who will inherit your estate if you die without leaving a will.

The online guide to

	Why make a Will It is not obligatory by law to prepare a will for yourself and it is an easy task to put off. However, many problems can arise if you die without leaving a valid will. Contents Deciding who inherits Inheritance Tax Appointing Legal Guardians for your children Setting up Trust for children Charity Donations Funeral Arrangements Problems for those left behind Laws of Intestacy Deciding who Inherits If you do not have a will the government will decide who inherits your possessions, property and money. Who inherits your estate will be decided by the Law of Intestacy (1925) and as you can imagine they are unlikely to divide your assets in the way you would choose. Under the Law of Intestacy if you are unmarried and have no close relatives your Estate will automatically pass to the Crown (government) if there is no valid Will in place. By making a will you can decide exactly who gets which assets and how much. This could be almost anything from personal belongings to pets or property. You will also help avoid unnecessary arguments amongst family members or relatives, that often arise when a deceased persons wishes are not made clear. Inheritance Tax Inheritance tax is the tax you pay on your estate. In simple terms this is everything that you own at the time of your death, once you have taken away anything that you owe. Writing a will allows you to greatly reduce the amount of inheritance tax you pay or even eliminate it altogether. Certain things can be given to particular people and organisations without inheritance tax being charged on them. This then allows you to provide more money for the people you want to receive it rather than paying it to the taxman. Appointing legal guardians for your children If you have children who are below the legal age to live alone, preparing a will is especially important. In your will you can appoint specific guardians to care for your children in the event of your death. If you fail to do so the authorities will do so on your behalf, in the way they see fit. Often they do not choose the people you would have personally chose to care for your children. This can be distressing for the children, as well as other family members, at a particularly difficult time. In some situations this means that a partner (who you are not married to) is not granted guardianship, even though they are the natural father. Setting up Trusts for children It is a good idea to set up a trust for your children’s inheritance as it allows you some control over your money once you pass away. It is possible for you to lay down certain terms to help protect assets from youthful irresponsibility. This is particularly useful when making long term financial provisions for handicapped children. Charity donations Included in your will can be a legacy you wish to leave to particular organisations or charities. This could be a specific amount of money or even a valuable item, for example a piece of jewellery. Alternatively you could leave a contingent bequest. This is the legal term for a gift left in your will that depends upon the occurrence of an event which may or may not happen. Please note that any legacy you leave will be free from tax. Funeral arrangements By making a will the desired recipients of you assets gain access to them far more quickly than if there is no will in place. This means that they can use any money you have set aside for funeral costs or inheritance you have left them to pay for the arrangements, without having to use their own money. Within your will you can make known your wishes. For example, whether you want to be buried or cremated, where you want the funeral to take place, and any specific hymns or readings you would like included. Problems for those left behind By not preparing a will you invariably will cause difficulties for those you leave behind, at a time which is already distressing. Firstly your next of kin may be unsure as to whether or not you have prepared a will. This means that they will probably have to spend time and money on searching for one. Once sure that no will had been made they would probably go through the courts in an attempt to gain the power to deal with your estate. If a will had been prepared this would be unnecessary as they would simply apply for probate, a process that is far quicker and easier to complete. As well as this, due to the delay in gaining access to your assets, your next of kin would have to pay for funeral expenses. There is also the possibility that they would have to pay inheritance tax before receiving any of your assets, a problem which often leads to financial hardship and even debt. If you have children and their mother is not alive, unless you have appointed guardians, your next of kin would need to deal with this too. This is also dealt with through the court which is costly and time consuming. When your next of kin reaches the point where they had access to your estate, they would have to distribute according to the Laws of Intestacy. Laws of Intestacy If you die leaving no valid will your estate will be distributed in accordance with the laws of intestacy. The flowchart below illustrates who will inherit your estate if you die without leaving a will.


Copyright © makingawill.org.uk, All Rights Reserved. Website Disclaimer Privacy Policy Contact Us