why make a will - will assist

A will is a statement of wishes about how you would want your estate (all your assets net of liabilities, probate and funeral costs) to be distributed after your death. It is no good keeping a mental note of your intentions or chatting with a friend or family member about them, or even scribbling down a note and sticking it in a drawer. It may be for example that you have a particular charity which is dear to your heart which you would like to benefit from your estate, or a specific gift that you would like to go to one individual after your death who may well not be entitled to it unless you specify them in your will.

A will doesn’t need to be complicated or technical but it does need to be drawn up and signed correctly in order for it’s content to be followed through and your wishes granted. You also need to receive the correct advice and guidance when having your created by someone who has fully established your individual needs based upon your own circumstances, wishes and beliefs. Sometimes people simply need a “basic” will which directs their assets at say husband or wife and then onto children, however after we have fully assessed your situation it may be that we will advise on other mechanisms which we feel it would be wise to build into the document such as trusts or changing the way that your property is owned. Without a will your estate is divided up according to the “intestacy” rules, which are pre-prescribed and laid down by the state. See our “intestacy chart” for further information. Ultimately if there is no will and nobody under the intestacy rules to distribute your assets to, they go to the treasury.

Inheritance Tax- This is a government tax due on the value of any assets distributed from an estate above a certain limit, currently (2009-2010) assets that exceed the value of £325,000 (after allowable deductions) will be taxed at 40%- ouch! It is fair to say that that the regime for Inheritance Tax (IHT) has been relaxed and improved in recent years with the raising of the threshold and the creation of the transferrable "nil rate band" between spouses and civil partners. There are also several forms of legacies which are exempt from IHT, for example those made to charities. For further information on IHT matters and more useful information please click on this link- http://www.hmrc.gov.uk/inheritancetax/index.htm

There are many ways in which your estate can be planned efficiently to help mitigate IHT charges. Contact us to find out how.

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