If you haven't written your will yet, our financial expert will show you how...
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In her latest column for Hood, our resident financial expert, Rachel Stewart, shares her top tips for one of those tasks that many of us are guilty of putting off - writing a will…
At the start of 2020, we spoke about doing our New Year financial health check. I believe that the first step towards action on that plan is to get yourself a formal will if you have not already.
This month I will be looking at the reasons behind that statement and whether DIY ‘will kits’ are really worth it. Apologies, we have to get squeamish again. We are back to asking ourselves some uncomfortable and frankly difficult questions – get that massive cup of tea ready.
When we die, our property passes to those we leave behind. My view on this is that if you want to predict the future, you have to create it but around half of all British adults do not have one in place. Here are some tips on what to think about.
If you die without a will, the law decides who your property passes to - and this isn’t as straightforward as it sounds. With a modern, blended family circle, relying solely on the law instead of having your own will and receiving bespoke advice can have unintended consequences. The law on this is complex and the truth is that dying without a will can make what is an already difficult time a lot harder for your loved ones. Making a will is one of the most important things we can do - after all, it determines how our most personal possessions and hard-earned savings will be shared among close family and friends.
A will can cover a range of issues, including:
Who should inherit your property, money, other assets and possessions;
How your children should be cared for;
The age at which a child may inherit;
Who should be responsible for looking after your estate (the executors);
Special arrangements for your funeral;
And charitable donations you would like to make;
You can leave gifts to friends, family and charities; and/or
You can attach conditions to gifts.
Ultimately, having a will can help avoid family arguments.
The first step towards will-making is to do some thinking. Make a note of all your savings and investments, pensions, property and valuables. Your financial health check we looked at last issue will help with this task. Have a think about your loved ones (this is particularly important if your family situation is more complex) and any causes you are passionate about and list them. Also think about your circumstances against some of the items a will can cover as listed above. Do you need to address anything specifically?
If your choices are unusual and not what your family would expect, then seek advice about writing a letter of wishes to sit alongside your will.
There are many DIY will kits available online and these can seem like a cheap and easy way of ticking off the task. If it sounds too good to be true, it probably is. Unless your will is very straightforward and your financial circumstances very simple it is best to get proper advice. The company you purchase a DIY will kit from is not taking responsibility for mistakes made in your will.
It may not be a task anyone looks forward to, a bit like health-checking your finances, but by making a will, you’ll have peace of mind knowing you’ve got your plans and affairs in order.
If you want to talk through anything touched on in this article please don’t hesitate to get in touch - visit traprainfinancial.co.uk.