5 Reasons Why You Should Make a Will
When it comes to ensuring the security of your loved ones and the preservation of your assets, few legal documents hold as much significance as a will. While some might see it as a mere list of inheritors, a will is, in fact, a crucial instrument that can profoundly impact the future of your estate. If you have assets in multiple countries you might even have to write multiple wills or a ‘worldwide will‘.
Download our PDF below and discover the five key benefits of creating a will…
1. Safeguard Your Assets
Imagine your will as a shield that safeguards your life’s accomplishments against various uncertainties. By embracing thoughtful estate planning measures, you can shield your assets from unexpected risks and potentially save your family from significant financial burdens. Our resource sheds light on several areas where a well-drafted will can provide protection:
- Care Fees: A meticulously designed will can safeguard a substantial portion of your property’s value from the potential impact of care fees, allowing you to preserve your estate for your heirs.
- Inheritance Tax (IHT): With IHT levied at 40% on assets above £325,000, a skillfully crafted will can significantly reduce your IHT liabilities, ensuring that more of your hard-earned assets stay within your family.
- Divorce or Bankruptcy: By incorporating protective clauses in your will, you can prevent the inheritance of your children from being compromised due to divorce or bankruptcy, preserving your wealth for generations to come.
- Spousal Remarriage Concerns: Address the possibility of your spouse remarrying after your passing by including protective clauses in your will. These clauses can help ensure that the inheritance intended for your children remains intact.
- Complex Family Dynamics: If your family includes children from previous relationships, our tailored will drafting can guarantee that all parties’ interests are upheld, assuring security for both your spouse and your children.
2. Establish Your Legacy
Leaving your estate without a will can create a legal quagmire for your loved ones. Intestacy can lead to prolonged legal proceedings, leaving beneficiaries with less than expected or, in some cases, no entitlement at all. A will provides you with the power to choose responsible individuals to manage your affairs, preventing potential conflicts and ensuring a smoother transition.
3. Claim Your Inheritance Tax Allowance
The intricacies of tax and succession laws are intricate and ever-evolving. In response, the government introduced the Residence Nil Rate Band (RNRB), a £350,000 Inheritance Tax Allowance for property passed to direct descendants. However, this allowance comes with specific criteria.
To ensure you don’t miss out on this valuable tax break, it’s crucial to keep your will up to date, especially if your will was drafted before 2006.
4. Craft a Personal ‘Letter of Wishes’
Even when an estate comprises modest assets, disputes can arise among family members during the distribution process. Personal belongings often hold sentimental value, making them a point of contention.
A ‘Letter of Wishes’ presents a unique opportunity to specify which items hold personal significance and who should inherit them. When someone dies, they can act as a blueprint. Adding a few personal words can provide comfort and clarity to your loved ones, alleviating potential tensions.
5. Secure Your Children’s Future
Parents have the privilege to nominate guardians for their children within their will. This provision is invaluable, as it allows you to determine who will care for your children should the unexpected occur.
By nominating guardians, you can ensure that your children’s future is entrusted to individuals who align with your wishes and values, preventing any court interventions.
Crafting a well-structured will offers a myriad of benefits, from shielding your assets and reducing tax liabilities to expressing personal wishes and securing your children’s future.
At GoodLaw, our expertise lies in estate planning and navigating complex family dynamics. Our specialist team is dedicated to crafting wills that ensure clarity, security, and peace of mind. If you’re ready to organise your affairs and establish a legacy, there’s no better place to start than by making a will.
Contact us today via phone 01252 471 200 or our simple contact form.