What should you include in your Will?

Understandably, post-pandemic, we’ve seen an increase in clients making their Wills. But it’s not always easy to know what to include. So, here’s a short ‘checklist’ to help you with the process.

1. Beneficiaries

If you leave your estate to more than one person, think carefully about how you’d like to distribute your estate. For example, recent births, deaths, marriages, divorces etc., may influence who you’d like to include in your Will.

If you want to exclude someone from your Will, it’s rarely simple. Take specialist legal advice to mitigate a challenge down the line.

2. Assets

List what you want to leave to family, friends and charity. Start with the obvious; property, vehicles, savings, investments, pensions and shareholdings. If you own a business, you’ll need to think about how to pass your interests on. Next, list smaller, more personal items such as jewellery and heirlooms.

Some assets can’t be left in a Will but can be dealt with in another way. First, however, focus on listing all your assets so you know what your estate entails. Notably, some types of jointly owned property will not pass under your Will, so establish ‘how’ you own your property.

3. Liabilities

Make sure you list your debts. Include your mortgage, car loan/lease, credit cards, personal/student loans and outstanding taxes.

Naturally, you don’t leave debts to a beneficiary, but you need to look at your overall financial status to plan accordingly. Funeral expenses, probate costs, and inheritance tax (IHT) are part of this process. In addition, bills or money owed is often part of the estate, so many take out life insurance to cover these after-death expenses.

4. Executor(s)

As the person who carries out your wishes and distributes your estate after you die, your Executor(s) should be someone you trust. We’d recommend two, but you can choose up to four. They can also be a beneficiary but must be over 18. It’s a good idea to name an alternate executor in case your first choice can’t act.

5. Guardians

If you have young children, your Will is the place to name their guardian(s). First, think about how you want to provide for your children. For example, you may leave an individual in charge of the family home (left to the children in your Will) until they reach a certain age. Also, consider naming backup guardians should your first choice be unavailable.

6. Inheritance Tax

The current IHT threshold is £325,000. So, if your total estate (minus debts/loans) is more, it may be subject to IHT. Usually, married couples and civil partners can transfer their unused allowance to each other. So, on the surviving partner’s death, the estate may claim both allowances, currently £650,000. Additional tax relief, known as the Residence Nil Rate Band, may also apply. Depending on your circumstances, lifetime gifts and other provisions can help to minimise IHT. Tax is a complex area, so take specialist advice.

7. Lasting Powers of Attorney (LPAs)

LPAs are as important as a Will, arguably more. If you lose capacity without one in place, your family can’t just gain control of your money, even if it’s to pay for your care. Instead, they’d need to apply to Court, often a time-consuming and costly process.

Our Advice

For further advice or information, or to get a quote for making a Will or LPA, please call contact us. We’re here to help.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.