Everything You Need to Consider when Writing a Will

Writing a will may, at first, seem like an easy task. After all, you only need to decide who you would like to leave your assets to and then divide this up as you wish, right? You may be surprised to find that there is, in fact, a lot of things to consider when writing your will. 

Worryingly, research conducted last year by Royal London found that 54% of parents either do not have a will or have one that is out of date. A will is the only legal way to specify what you want to happen to your children if you die before they turn 18 years old. It is extremely important that parents have an up to date will so that, if anything was to suddenly happen to them, there are legal plans in place for their children. Of course, you will likely have certain people in mind that you would like to bring your children up should you pass. 

Making the decision to write your will is an important step. Anyone over the age of 18 can make a will and, while it is an easy task to put off and delay, it is especially important that those with children take the time to make one. Below, we take a look at the important things you need to consider when writing your will, from considering who you want to benefit from your estate to understanding inheritance tax.

Decide how you want to divide your estate when making a will

First and foremost, it is important that you consider how you want to divide your estate and who you want to benefit from your estate. Begin by drawing up a list of your assets. This will include properties that you own, any savings in the bank, investments (such as stocks and shares), motor vehicles, furniture, jewellery, antiques and more. You should also make a list of any debts that you have; for example, a mortgage, a bank overdraft, any loans and a credit card balance. 

You should have your assets valued regularly as their value can change over time. Working out exactly what you are worth is not only important for inheritance tax purposes, but it also helps you to understand what you are dealing with. 

Next, you should consider who you would like to benefit from your will. While this is a seemingly straightforward decision for many people, as it is usually their spouse or children, there are a few other things that you should consider when writing your will. For example, is it possible that your spouse could remarry and disinherit your children? Make sure that you make a clear list of who you would like to benefit from your estate. You may consider including close family members like siblings, your partner, spouse, children, friends or charities. 

If you are not married or you do not have children, you should think about who you would like to leave your possessions to. If you do have children and they are now adults, this can complicate things in terms of inheritance tax. Read on to find out more.

Inheritance tax and/or care fees planning

When writing up your will, it is imperative that you think about inheritance tax. While assets that are passed on to a spouse have no inheritance tax liability, when you pass them on to someone else it can eat into your inheritance tax-free allowance, so it is important that you consider this when deciding how you would like to divide your estate. 

As it stands, everyone can leave an estate worth up to £325,000 inheritance tax-free. The standard inheritance tax rate is 40% of anything in your estate over this £325,000 threshold. Both civil partners and married couples can double up their inheritance tax-free amount, allowing them to pass on up to £650,000. 

If you are considerably below the threshold and would like to pass on your wealth to your adult children, you are able to do so without losing some of your wealth to tax. If you own a home in an expensive area, you may find that you are near the inheritance tax threshold or even over it. If this is the case, you may want to consider passing everything to your spouse, which would be tax-free, and then have them pass on your wealth to the children or grandchildren when they die. This way, you can avoid losing large amounts of money due to tax.

Think about your executors

Choosing who is going to carry out the terms of your will is another important decision that you will have to make when creating your will. The people that you put in charge of seeing that the terms of your will are carried out once you have passed are known as your executors. Your executor should be someone that you trust and feel comfortable with, as they will obviously be responsible for ensuring that your will is carried out properly. You do not have to have just one executor; many people choose to have a substitute executor too, for peace of mind. 

Your most obvious choice may be your spouse or your children; however, sometimes, it is not as straightforward as this. If your children do not get on with each other, this can cause difficulties. In this situation, you may want to consider choosing an impartial or professional executor. 

Usually, executors will also act as trustees. This means that it is essential that you choose someone that you trust. If your children are minors, your chosen executors and trustees will be responsible for managing their inheritance until they are old enough to inherit.

Who do you want to look after your children?

If your children are under the age of 18, you will need to name guardians who will look after your children if you die. Of course, this is a very difficult task for many. Not only do you want someone who will be happy to look after your children, but you also want to choose someone who will raise your children the way you would like them to be raised and someone that you absolutely trust with the physical welfare of your children. 

Your chosen trustees and guardians do not have to be the same people, however, to make things easier it is essential that they know each other and get on. When writing a will, both parents should agree on who the guardians of their children should be and this should be stated on both parent’s wills. The guardians in your will are not forced to look after your children and, if necessary, others can be appointed.

Leaving legacies to your loved ones

When they pass, many people want to leave individual items, assets or sums of money to certain loved ones. You may have a beautiful antique armchair that has been passed down through generations that you would like your son to have, or a special piece of jewellery that you would like your daughter to have. Whatever the item, whether it is an old classic car or a specific sum of money, you can write this in your will to ensure that certain loved ones receive the items that you would like them to have.

Hawley and Rodgers: expert wills and probate services in Nottingham

When it comes to writing your will, it is always recommended that you acquire the assistance of a solicitor, especially if you are unsure about what you are doing. Here at Hawley and Rodgers, our team of wills and probate solicitors in Loughborough and Nottingham can provide you with all of the assistance, advice and will writing services that you need. Having successfully dealt with numerous wills in the past, our team of legal experts can help you to write your will in the shortest time possible and ensure that you avoid the common mistakes made when writing a will.