Whilst everyone should make a Will statistics currently show that two out of every three people in the UK have yet to do so.
For whatever reason, putting off making your Will is a bad move.
Even those that have made a Will may have not put the correct planning in place to protect their children's and grandchildren's inheritance.
Dying without putting the correct Will and Estate Planning in place puts your home and assets at risk from the following scenarios.
Incorrect care for your children
Without a Will in place or if you do not appoint Guardians in your Will, your children could be placed in care until the Courts choose who looks after them. This could take months and would obviously result in unnecessary distress for your children and other members of your family.
Sale of Home for Care fee's
The costs involved in moving into a Care Home can literally wipe out your entire savings and your home may also have to be sold to pay for care fees. Your loved ones could potentially receive very little, if anything at all. By making a Will and using the correct Estate Planning strategy this could be prevented.
Inheritance Tax (IHT)
Currently if the value of your estate is in excess of £325,000 anything above this amount could be charged Inheritance Tax at the rate of 40% in the event of your death. Without the correct Estate Planning in place your loved ones will not receive the full value of your estate.
Creditors
Without the appropriate Estate Planning strategy in place creditors or bankruptcy could swallow up your child’s inheritance if they or their future partners get into financial difficulty.
Unmarried partners
Unmarried partners, often referred to as common law partners, may not receive anything if you do not make a Will and put the appropriate Estate Planning in place.
Marriage after divorce
Without putting Estate Planning in place your assets may not be protected against your own possible future divorce or that of your Children.
Marriage after death
Without Estate Planning, If your spouse remarries after your Death your children may not get all of their intended inheritance.
An ex-partner
With out the correct planning and a Will in place It is possible that an ex-partner could have a claim on your estate.
Laws of Intestacy
If you do not have a Will, the law states that the law of intestacy will apply, this law decides who inherits your estate, even if you are married your spouse may not receive the full proceeds of your estate.
Letters of Administration
Without a Will in Place Letters of Administration have to be applied for by your family through the Courts to give them permission to administer your Estate. These are granted where the deceased died intestate. Dealing with the deceased estate can be very time consuming and take several months.
Summary
Irrespective of your age or what you currently consider your estate to be worth, making a Will and putting right Estate Planning in place is one of the most important tasks that your are likely to undertake in life.
Whilst initially it may seem a daunting task, with the help of a professional Will Writing and Estate Planning Consultant or a Solicitor, it can be quite straight forward.
Whilst there are different types of Diy Will Kit's available along with cheap online solutions, using these can be a false economy. It is important to have the job done by a professional to ensure your financial affairs are in order for your future generations.
Related Links
Preventing sale of home for care fees
What is estate planning
Applying for probate when someone dies
Law of intestacy
