It is said that procrastination is the grave in which opportunity is buried.
Many of us start the year with a new ‘to do’ list. Is writing or updating your will on your list? Legal planning is something which is easy to postpone. But there can be a financial cost to this procrastination – one that is entirely avoidable.
Writing your will allows you to plan the devolution of your estate and more. You can choose your executors, appoint guardians for children, as well as deciding where your assets pass.
But your will can do even more. It gives you the opportunity to ensure that your wishes are tax-efficient, making the best use of the many valuable inheritance tax exemptions and reliefs. If you are a business owner, for example, you may want to consider the best way of maximising any potential business property relief. This could be by a direct gift or trust structure – there are more options than you may realise.
Using a professional to prepare your will significantly reduces the chance of a dispute arising after your death (something which is becoming more common). The costs of post-death challenges are often disproportionate and exhaust an estate, resulting in an outcome that the testator would not have wanted.
Your will also protects your loved ones. Without it, the intestacy rules will decide where your assets pass, and who will administer your estate. These rules are a ‘one size fits all’ formula which is rarely appropriate in a modern society, often leading to an inequitable result. For example, the rules make no provision for cohabitants or stepchildren. The intestacy rules also give inheritance to family members at the age of eighteen, which many testators would consider too young.
These are all avoidable consequences of not having a will. By tackling this and ensuring your will is effective and up to date, you are making the most of the planning opportunities that are available.
Maintaining your personal legal documentation is an important task. The pandemic has taught us how quickly life can change. Making the most of the opportunities for forward planning can future-proof your affairs and ensure the best outcome for you and your loved ones.
If your will is on your ‘to do’ list, take action now. Legacy Law is a local firm specialising in wills and estate planning. The firm is owned and run by solicitor Catherine Whitaker TEP, a full member of the Society of Trust and Estate Practitioners (STEP), as well as Solicitors for the Elderly (SFE) and a trained Dementia Friend. We will be happy to discuss your requirements and help you put a will in place.
