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What is a Will?
A Will is a list of instructions telling your Executors what to do with your property after you die.
What if I don't make a Will?
Your property will be divided according to certain legal rules (the "intestacy rules"). Some of them may surprise you. For example, the share your husband or wife gets may not be enough to give him or her outright ownership of your home. Also, if you are not married but have been living with someone, the person you are living with will not get anything. The following will give you a rough idea of how the rules work:
What can I do in a Will?
You can explain exactly what you want to happen to your property.
For example you can:-
- Make gifts of money,
- gifts of personal belongings,
- make gifts to charity which are free of Inheritance Tax,
- appoint guardians to look after your young children,
- choose who you want to be your Executors and Trustees.
Fundamentally, your Will is a record of your instructions on how you want your estate to be distributed after you die.
What can I not do in a Will?
Your Will can provide what is to happen to your estate when you die. However, your Will cannot say what is to happen to any of the following:
- Property which is in your own and some else's joint names and which is regarded under the law as 'joint property' (for example, the property in which you and your partner live or joint bank or building society accounts may be regarded as 'joint property'). In such cases the property may pass on your death to the surviving joint owner(s) of the property in question.
- Certain benefits payable under pension policies may pass to the persons nominated by you in a separate letter of nomination.
- Property held for you under certain types of trust will not pass under your Will on your death, but will be distributed in accordance with the terms of the trust document.
- The proceeds under life policies written in trust for the benefit of named individuals will pass to those individuals, regardless of the terms of your Will.
- Property of the subject of nominations (for example, money in a friendly society) will pass to the nominated beneficiary.
Can I change my Will?
Yes, by signing a document known as a Codicil. This must also be prepared, signed and executed in a similar manner to a Will. You do not need a. A Codicil is useful for minor changes to your Will (but is not necessary if you or any person named in your Will changes their address). If major changes are required, it is often preferable to write a new Will.
Can I cancel my Will?
You can cancel your Will by making a new Will, or simply by tearing it up or destroying it.
Does marriage or divorce affect my Will?
A Will is cancelled automatically if you get married after making it unless you have made provisions in it in anticipation of your marriage. Divorced cancels any provisions you made in favour of your wife or husband, unless the Will says otherwise. It is often better to write a new Will if there are major changes to your circumstances.
What are Executors?
Executors are the people you appoint to carry out your instructions after you die.
What are Trustees?
Trustees are the people you appoint to look after your property until for example, a child is old enough to inherit or where there is a life interest. Executors and Trustees are usually the same people.
How many Executors can be appointed?
Up to four Executors, but you should appoint at least two.
Whom should I appoint as Executors?
Any person over 18yrs may be appointed as an Executor. One of them could be your husband or wife or your partner. Relatives and close family friends can be Executors. Another Executor can be appointed at a later date if you want to do so by means of a Codicil. If you appoint a professional it is important to remember that they will charge for their service.
What do Executors do?
Executors distribute your estate in accordance with the instructions in your Will after paying your debts and funeral expenses. They gather all your assets and make any gifts of money and transfer any gifts or personal belongings in accordance with your Will before dealing with the remainder (your residuary)
Should I appoint Guardians?
If you have children under the age of 18 who may be left with no parents you should appoint a suitable Guardian or Guardians.
What happens to property in joint names?
Husbands and wives are usually, but not always, ‘joint tenants’. This means that when one of them dies the other one automatically becomes the owner of the whole of the property. In these circumstances you cannot make a gift in a Will of your of the property.
Business partners are usually, but not always, ‘tenants in common’. This means that when one of them dies his or her interest in the property forms part of his or her Estate. In these circumstances you can make a gift of your share of the property in your Will.
What about Inheritance Tax?
The rules concerning Inheritance Tax are complicated. But as a general rule if the total of:-
- the value of your estate at the date of your death, and
- the value of any Trust Fund in which you have a life interest at the date of your death (or within seven years before your death), and
- the value of any gifts you make in the seven years to the date of your death does not exceed £231,000 then there is unlikely to be any Inheritance Tax payable.
If the total value does exceed £231,000 there may be efficient and cheap ways of saving a substantial amount of Inheritance Tax. If you think that this is likely to apply to you, we recommend that you discuss it with us further.
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