Your first will is the legal document that ensures your wishes are carried out after your death. Your first will may not be at the forefront of your mind when you’re first starting out, but what if the unexpected, tragically, happens?
Whether you are single, in a relationship, have children or not yet, putting your first will in place protects your assets and your family, and ensures that your wishes are followed, and your loved ones receive what you wish them to.
It is essential to have a will in place, so why not set a goal in 2024 to get it done?
Importance of Having a Will
A will allows you to dictate how your assets will be distributed, and who receives your belongings and other assets that you may have and consider precious.
It provides clarity and avoids unnecessary conflicts among family members. Crucially, a will enables you to name guardians for your children, if you have any yet, ensuring that they are cared for by the people that you choose.
There are numerous challenges facing people when their will is executed.
Here are four examples to consider:
- My partner (unmarried) and I have been together for ten years so she/he will get everything as we’re in a common law marriage.
Sadly, there is no such thing as a ‘common law marriage’ it is an urban myth. If you pass away, unmarried, without a will stating that your partner is to inherit, then your estate will be passed to your next of kin (next living relative) starting with your parents then siblings. This would include any shares of property you may have and pensions.
- If we both die my brother, and his wife will take care of the kids.
If you do not stipulate guardians in your will then social services will do this on your behalf, fundamentally it is down to them to decide the outcome of where the children will reside but stipulating guardians in your will gives them a direct request from you stating whom you would like to raise your children.
- My family will know what to do with my belongings.
Will they? If you have specific items that you want to be given to a certain person than you can allocate these ‘chattels’ in your will. You can write in specific gifts such as a watch to a favourite nephew or a piece of jewellery to a friend, you can even gift sums of cash, should you wish.
- I don’t want my ex to get anything.
Then you will need to write an exclusion in your will stating the person and their relationship to you to exclude them. This exclusion will give absolute clarity on your wishes, and reduce the risk of any legal challenge from a former spouse when your family are working through the mourning process. If you are still married and do not have a will in place that partner will be your sole beneficiary regardless of relationship breakdown.
Inheritance Tax and your First Will
The allowances, thresholds, rules and regulations for inheritance tax are complex and require specialist knowledge to navigate.
That said, the simplest way to consider inheritance tax is to think about what you own that has value, including property, pensions, life insurance, and so on.
The lower threshold is £325,000. If what you own is worth more than this threshold, its important to take professional advice on the best course of action. In any event, its best to take advice so that your first will is fit for your purposes, and can be kept up to date as your circumstances and wealth change over the years.
Getting Your First Will Done in 2024
By having your first will in place early, you can update and revise it as needed in the future. You may only need the basics at this early stage, and you may be surprised by the relatively low cost of creating your first will. You should still seek professional advice, and free wills are best avoided. Remember, this is a legal document, and like all legal documents, there is a legal framework to follow to reduce any risk of legal challenge.
Getting it right means that your wishes will be carried out.
This proactive step of writing your first will can bring peace of mind and avoid potential complications down the line.
Influences on your Decision
Recent events like the global pandemic have highlighted the uncertainty of life and the need to plan for the unexpected. The economic climate and changing legislation also make it crucial to keep your will up to date once you have written your first will.
Getting your first will done in 2024 is a wise decision for individuals of all ages. It offers numerous benefits, including peace of mind, clarity, and the ability to adapt to future changes. Consider the contents of this blog, and get in touch if this raises any questions for you. We’re here to help, and we’re happy to answer.
