The most important tip about wills is to make one in the first place. Beyond that, do your best to ensure your wishes on who inherits will be followed after you die.
Many people get a lawyer to draw up their will to be certain their intentions for their property and other assets are set down properly.
Will writing services have become a cheap and increasingly popular alternative to high street solicitors, but if you use one check they belong to a professional organisation and adhere to a code of conduct.
‘If you die without a will, the distribution of your estate is done using regulations known as the intestacy rule,’ says Kirsty Limacher, chief legal officer at The Association of Lifetime Lawyers.
‘These rules prioritise specific family members but don’t consider your wishes regarding other family, friends or charitable organisations. Without a will, you give up control over what happens.’
Tips on making a will From left, James Ward, Andrew Oxlade and Kirsty Limacher
Andrew Oxlade, investment director at Fidelity International, says: ‘I first drew up my will aged 43 – and have had a sense of relief ever since.
‘The problems that stem from not having a will, or intestate are manyfold. That’s why I consider it to be one of the central planks of personal finance planning.’
We round up 10 tips from money and legal experts about drawing up a will.
1. Value your estate
‘Before you even come to draw up a will, it’s best to regularly assess how much your assets and debts are worth, so you have the clearest idea on how you want to bequeath your estate,’ says Oxlade.
You should consider the value of your home, belongings, savings, investments, pensions and business assets versus any loans or mortgages you may have, and a financial adviser can help you do this, he says.
James Ward, partner and head of private client practice at Kingsley Napley, says make sure your will covers all of your assets.
‘Remember that jointly held assets, life insurance and pension payments are often NOT covered by your will. The destination of those monies needs to be understood and tailored to your wishes.’
2. Be clear and specific
‘The upward trend in disputed wills has continued over the last 12 months, with a record number of challenges being made with the probate registry,’ says Limacher.
‘This is partly caused by more complex family structures, and partly by a lack of clarity in the wording used in wills.’
She says the precise words you use, and how clauses relate to each other, really matter and need to be specific and clear enough to convey your intentions.
‘Vague language or inconsistencies in the document can lead to confusion and disputes among beneficiaries.’
3. Get the signing process right
Ward notes the importance of taking care over the practicalities when drawing up a will.
‘Make sure it is in writing, make sure it is properly signed by you and two witnesses who are both present at the time of signing, make sure names are accurate.’
Limacher says: ‘For wills to be valid, the signing process has to follow strict rules. If you don’t follow the rules your will won’t be worth the paper it’s written on.’
She adds: ‘TV soaps often show the wrong signing process for wills – Eastenders is the most recent example of this! Please don’t fall into this pitfall.’
Many people get a lawyer to draw up their will to be certain their intentions for their property and other assets are set down properly
4. Choose your executors carefully
Executors administer your last wishes, such as obtaining probate – which gives them access to your money – closing bank accounts, settling bills, and the sale of the family home.
You will be risking family strife and delays at each step if executors are at loggerheads, lawyers warn.
They say beware making adult children the executors of your will if they don’t get along or could be upset over how you split your estate.
Other tips are to choose executors from a younger generation, who are financially responsible and will remain neutral, and if you don’t have anyone you trust then appoint a professional.
‘Make sure your executors get on,’ says Ward. ‘Fighting executors can cause significant issues and delay the administration of your estate.’
5. Protect your partner and family
‘It’s important to understand both yours and your partner’s legal rights to assets such as property which may not always be jointly owned,’ says Oxlade.
‘It’s crucial that you have a will in place expressing your wishes regarding children and assets to ensure that your partner is protected.’
6. Review your will
‘It’s good practice to update your will at least every five years to make sure it still meets your needs,’ says Limacher.
‘Something expert solicitors have seen more of in the last year is financial situations changing rapidly from the point a will is drafted – thanks to the high cost of care and nursing fees which more people are needing as we live longer.
‘When you’re faced with paying more for care and your assets become depleted, you need to be really careful with the wording in your will to make sure inheritance is passed on as you intended.’
Oxlade also believes in reassessing your will every five years to account for new milestone or significant life changes.
‘For example, if you find yourself remarrying in later life then a new will needs to be drawn up. It’s especially important to reassess how you want your estate to be distributed if there are additional beneficiaries to consider.’
Ward says: ‘Make sure you check on your will every few years as often it is worse to have an old will rather than no will especially if family circumstances or relationships have moved on.’
7. Take into account divorce or marriage
‘If you get married, your will is automatically revoked unless made in contemplation of marriage,’ says Ward.
‘If you get divorced you should also update your will if made in marriage because it is not automatically revoked on dissolution of marriage.’
8. Beware the risks of mirror wills
‘Solicitors are increasingly dealing with the fallout from loopholes with mirror wills.’ warns Limacher.
‘These are two wills that literally mirror each other – for example setting out that on the death of one party, everything will pass to the other party and then on the second death, to their children.’
She says they are very common and often preferred by couples as they are easy to create, but people often fail to consider what could happen after one of them dies.
‘After the death of the first party, the second party is free to change their will – and the first party’s wishes could be dismissed in the process, with rightful heirs denied inheritances without any say,’ explains Limacher.
‘It’s particularly important that this is considered carefully with blended families.’
9. Think about your digital inheritance
Digital assets can include social media profiles, email accounts, photos stored online, royalties from adverts, subscription services and cryptocurrency,
‘Executors of wills not having log-in details to access social media accounts is an increasingly common problem,’ says Limacher. ‘Make sure these are shared with executors in a secure way and that the details are updated if you change them.’
She says Facebook allows you to nominate a legacy contact to look after a memorialised main profile, or have your account permanently deleted following your death.
A Which? survey of 14,600 of its members earlier this year found 76 per cent had no plan for what to do with digital assets after they died.
Some 18 per cent had left directions on how to access accounts for friends and family, and 3 per cent had included provisions in their will.
Which? suggests sharing account details with loved ones before you die, and leaving a letter of wishes with your will to allow access to digital assets.
10. Consider inheritance tax if your estate might be liable
Most estates don’t get hit by inheritance tax. You need to be worth £325,000 if you are single, or £650,000 jointly if you are married or in a civil partnership, for your loved ones to have to stump up death duties.
But there is a further chunky allowance which increases the threshold to a joint £1million if you have a partner, own a property, and intend to leave money to your direct descendants.
‘Beneficiaries who don’t have to pay inheritance tax include spouses or civil partners, registered UK charities, and qualifying political parties and national institutions,’ says Limacher.
‘Beneficiaries who don’t fit into these categories will have to pay inheritance tax if your estate’s value exceeds the available tax-free allowances.’
Oxlade says: ‘Anything left to charity is free of inheritance tax, so it’s worth considering this as a way of reducing the tax due on your estate, while also benefiting a good cause.
‘Additionally, if 10 per cent of your net estate is left to charity the rate of inheritance applicable on death is reduced to 36 per cent from 40 per cent, meaning the taxman would take a smaller cut of your estate.’