Wills

You may also be asking yourself if your Will needs to be prepared by a solicitor or professional Will writer (with the cost that that entails) or whether you can use a more ‘DIY’ option. Almost without exception, a professionally drafted Will is the better option. Not only can you be confident that your estate will pass according to your wishes and instructions, but you will be guided in thinking about your assets and family circumstances to ensure that all matters are appropriately dealt with.

The form of a DIY Will is likely to be limited, and your particular estate and circumstances may benefit significantly from a particular form of Will. For example, some people may be well advised to set up a trust in their Will for reasons of asset protection or flexibility and this would certainly require professional and careful drafting. Without the assistance of a solicitor or professional Will writer, you may be missing the opportunity of leaving your estate in the most secure and efficient way possible.

There are many benefits to making a Will. These include:

• Giving you control by ensuring you do not die intestate—this means that your assets pass to those you intended (and are not dictated by general intestacy rules) and that your estate is administered by people you choose (again, not dictated by intestacy rules)

• Ensuring you have appointed executors which makes it much easier and quicker to administer your estate

• Ensuring that the people who matter most to you are looked after if you die—this is particularly important if you have young children or if someone vulnerable is dependent on you

• Helping you focus on and think about what your assets and liabilities may be if you die—this helps you put your affairs in order today and allows you to think about what assets and liabilities may arise on your death and who these pass to (eg life insurance or pension benefits may be payable on your death)

• Ensuring your estate and what you leave behind is maximised by using tax planning and tax reliefs appropriately, particularly in relation to inheritance tax (which is the main tax to consider when doing your estate planning)

• Ensuring (either through the Will itself or in a supplementary document) that some other very important matters are dealt with, specifically funeral wishes and appointing guardians if you have young children. 

• Allowing you to make gifts to particular people or charities/organisations that are important to you

• Allowing you to the opportunity to discuss your estate planning with your family which will significantly reduce the prospect of disputes arising after your death
   

Making a Will also means securing benefits which arise in relation to particular assets you may have, for example:

• foreign property (eg if you have a home abroad, it will be important to establish how and to whom this will pass on your death and to ensure to the extent possible this is in accordance with your wishes and not local law)
• business property (eg if you are a company or business owner, preparing a Will would allow you to consider and plan the succession to the business (so that it does not have to be sold following your death), as well maximise any possible tax reliefs for passing the business to the next generation)
• farming or agricultural land (as above, if you own or manage farmland a Will would allow you to do succession planning and also maximise tax reliefs)

Inheritance tax is essentially a tax charge on the value of your assets when you die. There are a number of well-known reliefs and exemptions (such as the spouse exemption, where leaving your estate to your spouse means there is no inheritance tax payable). The inheritance tax charge is usually paid out of your estate by your executors when they are administering it. 

However, the application of inheritance tax rules is not straightforward. A significant benefit of getting a professionally drafted Will is ensuring that you leave your estate in such a way so as to minimise any inheritance tax charges (or other tax charges).