Creating a will is a crucial step in ensuring that your assets are distributed according to your wishes after your death. The law surrounding wills is designed to provide clarity and fairness in the distribution of an individual’s estate. Understanding the legal requirements and seeking professional advice can help you navigate the process effectively.

Why Make a Will?

A will is a legal document that outlines how your money, property, and possessions should be distributed after your death. Without a will, the law dictates who inherits your estate, which may not align with your wishes. Making a will allows you to:

  • Specify Beneficiaries: Decide who will receive your assets.

  • Appoint Executors: Choose trusted individuals to manage your estate.

  • Minimise Inheritance Tax: Ensure your estate is taxed efficiently.

  • Provide for Dependents: Make arrangements for the care of minor children or dependents.

Legal Requirements for a Valid Will

For a will to be legally valid, it must meet several criteria:

  • Age and Mental Capacity: You must be 18 or over and of sound mind.

  • Voluntary Creation: The will must be made voluntarily, without coercion.

  • Written Document: It must be in writing.

  • Signature and Witnesses: You must sign the will in the presence of two witnesses, who must also sign it in your presence. Witnesses must be over 18 and cannot be beneficiaries of the will.

Signing and Witnessing

The signing and witnessing process is critical to the validity of a will. Both witnesses must have a clear view of you signing the document, and you must see them sign it.

Updating Your Will

Life circumstances change, and so might your wishes regarding your estate. You can update your will by making a codicil or by creating a new will. Any changes must follow the same signing and witnessing process to be legally valid.

Dying Without a Will

If you die without a will, known as dying intestate, the law decides who inherits your estate based on a set hierarchy. This can lead to unintended consequences, such as distant relatives inheriting your assets or your estate being divided in ways you did not intend.

Inheritance Tax

Inheritance Tax is a tax on the estate of someone who has died. The standard inheritance tax threshold is £325,000. This means if the total value of the estate is below £325,000, no inheritance tax is due. If you leave your home to direct descendants, such as your children or grandchildren, the threshold can increase to £500,000 as, in these circumstances, the Residence Nil Rate Band of £175,000 should be available.

The standard inheritance tax rate is 40%. This rate is applied to the value of the estate that exceeds the threshold available. For example, if the estate is worth £500,000 and the threshold is £325,000, the tax payable is £70,000 (40% of £175,000).

There are also certain exemptions and reliefs. There is no inheritance tax to pay if you leave everything above the threshold to your spouse or civil partner and no inheritance tax is due if you leave your entire estate to a charity. However, if the estate is taxable and you leave 10% or more of your estate to charity, the tax rate on the remaining estate can be reduced to 36%. Certain business and agricultural assets can also be passed on free of inheritance tax or with a reduced tax bill.

Using a Solicitor

While you can write your will yourself, it is advisable to seek legal advice, especially if your estate is complex. A solicitor can help ensure that your will is legally sound and reflects your wishes accurately. If you need advice on writing a will or to speak to a solicitor who specialises in wills, trusts & probate contact Farleys today on 0845 287 0939, complete our online contact form or use the online chat below.