Wills and all that boring stuff

Where there’s a will there’s a way

The importance of having a will and being organised financially in the event of your death

By James Biggs

Never more so than in this Covid era, have we had to confront the idea that people die, with the eye-wateringly high death rates being thrust at us every night on the news. And we don’t really like thinking about it either. So, what happens to your wealth if you die?

The commonest misconception is that it all goes to your partner. This is mostly true – if you have a will. You do have a will, don’t you? But what happens if you die without a will. This is called intestacy and the laws of intestacy then prevail. Yes, laws!!

If you have a married partner or are in a civil partnership, the first £270k of assets go to your partner along with all your personal possessions. If you have children, and assets above £270k, the balance is split 50/50 between your children (or their children if your child has died) and your married or civil partner. This applies in England and Wales only. Sounds complicated – it is! And I am no expert on this subject, with this snippet of information just scratching the surface.

Why have a will then:

1. It ensures all your assets and possessions go to who you want them to.

2. This in turn adds speed – dying intestate slows stuff down.

3. It appoints people who will see these wishes actioned – called executors.

4. It allows you to appoint those who will look after your children if they are not yet adults.

5. It protects both parties in a relationship.

We should all have a will – simple!

Where do we get one? There are many ways – via a solicitor (likely to be the most expensive, so shop around); will writing companies (probably cheaper than law firms, so check the credentials out); online options (read all the small print); self-written from a downloadable template (much care is needed here because if not executed properly they may be deemed invalid). Some lawyers offer free wills in certain highlighted charity months of the year, in the hope you will leave a small legacy to the named charities within the campaigns. I love this idea, so keep an eye out or search online for free wills month. Be vigilant here too – online searches are often peppered with adverts from non-free options, hoping to secure your interest and a fee!

Oh and while we are talking here about dying, don’t forget also to do this:

1. Complete a death nomination on your pension pots – I have covered this before. 1 in 4 of us has done so. That means 75% of you have not. It is your pension fund (your money) and you can say where it goes (normally tax-free) if you die before retiring.

2. Complete an expression of wish form for your workplace death in service contract. This is normally a multiple of salary (4 x salary is pretty common) and it would also be paid taxfree by your employer to your named loved ones. 3. Amend points 1 and 2 when your circumstances change – to quote a female I met recently in a workplace 1-1 chat “I had no idea my pension pot was still going to my ex-husband if I died – well I hate that bloke now, so I have just changed it online”

4. Consider adding a simple trust to life insurances you may have privately – it could mean speed of settlement and tax issues are more favourable.

5. Consider more complex trusts for inheritance planning – not my field, so seek advice!

I love the message in the saying ‘where there is a will, there is a way’ – for me, this means that if I put my mind to something I can normally get a better outcome. But in this article, let us also embrace it as meaning – if you have made a will, your wealth is shared exactly how you intended it to be – therefore, ‘your way’!