Writing a will is an important moment in your life.
Even though it’s about affairs after your life, it gives you peace of mind in the here and now.
Read on to learn what a will is and how to write one.
Will: A definition
A will is a legally binding document that outlines someone’s wishes about dividing their assets when they pass away. This includes money, property, and other possessions.
A will typically names an executor – someone who ensures the estate is divided according to the will’s instructions. It may also name guardians for any dependent children.
Without a will, a person’s estate is divided according to intestacy rules, which may not be consistent with what that person wanted.
Types of wills
The main types of wills are:
- Single will – the most common type of Will, simply stating what should happen with your belongings after you pass
- Mirror will – if you and your significant other share the same wishes, you can create two identical (‘mirror’) Wills, saving you time and money
- Trust will – sets up a Trust as part of your Will
- Discretionary trust will – gives the trustee the discretion to decide who benefits from the estate, and how and when they will benefit
- Property trust will – puts a property that is in your name into a Trust
Are wills required?
No, it’s not a legal requirement to write a will. But it’s strongly recommended by almost everyone.
It can save money, ensure your wishes are respected, and overall make life far easier for all involved.
Reasons to write a will
Decide how your estate is shared out
When you’ve spent your entire life working hard and building up your assets, you want to decide how it’s allocated.
A will allows you to do that. Without a will, assets may not go to your intended beneficiaries.
By writing a will, you are taking charge of your estate. This ensures your wishes are respected.
Appoint guardians for your children
If you have children under the age of 18, you can choose legal guardians in your will to look after them.
This ensures your children are cared for by people you trust.
Faster and easier for your loved ones
The entire probate process is far easier for your loved ones when a will exists. They will thank you for it.
The executor will have clear instructions to follow, avoiding lengthy delays.
Reduce inheritance tax
Careful estate planning reduces potential inheritance tax liabilities, which might include capital gains taxes. Your solicitor can advise you on schemes like trusts.
Peace of mind
Knowing your will well reflects your wishes brings a sense of comfort.
It assures you that loved ones will be provided for in your absence. Appointing an executor also alleviates the burden on grieving relatives.
Avoid disputes between family members
Without clear wishes, grieving relatives can argue about how your estate should be distributed.
For example, siblings selling inherited properties will want to establish how much their share is worth.
A binding agreement will minimise the potential for conflict.
How to write a will
1. Find a solicitor
You ideally need a solicitor to support you in creating a will. Unless you have experience in this area, it’s a bad idea to do it by yourself.
Even if it costs more, it’s far likelier to be done properly. This expert can guide you through the following steps.
2. Choose executors
Your first step is to choose an executor. This person(s) is responsible for ensuring the wishes of your will are fulfilled.
You should choose someone you trust who is over the age of 18.
3. Decide beneficiaries
Your next step is to decide who will receive which assets. Start with the major ones like property, cars, money, and shares.
State clearly if they are to benefit only if other beneficiaries have died.
4. Choose guardians
If you have children under 18, include legal guardians to care for them. Talk to the guardians before naming them in your will.
5. Pick witnesses
When you sign the will, two adult independent witnesses must also sign it to validate it.
Witnesses should not be beneficiaries or the partners of beneficiaries.
6. Review regularly
A will should be revisited whenever a significant life event occurs. Examples include:
- Births
- Deaths
- Marriages
- Divorces
- Substantial purchases.
These events can significantly impact your estate planning. So, it’s essential to keep your will up to date.
7. Store safely
Keep the original signed copy secure. This is like a fireproof box at home or with a solicitor. Executors should know the location and have access if needed.
How much does it cost to write a will?
The average price of creating a will is around £350.
It could be higher in some cases. You will also find charities that offer this at a far reduced price.
Both Moneyhelper.org and Cartwright King state that prices start at £150 and can usually go up to around £500. Anything higher than this, and you may be being overcharged.
There is more than one type of will, which can also impact the cost.
For example:
- Specialist and Trust Wills usually cost more than £400 in the UK
- Single Will may only set you back around £150.
A Mirror Will can save you money over the cost of two Wills, as it is a more time and cost-effective way to go about things.
Cost of creating your own will
You can choose to write a will by yourself, without the support of a solicitor.
This may save you money, and can therefore cost only around £50 to do.
However, you must ensure you don’t make any mistakes and cover everything you need to.
How long does it take to write a will?
The entire process doesn’t need to take any more than about two weeks from start to finish. It may be longer if you’ve got a complicated estate.
Things to consider when writing your will
Minimise inheritance tax
You don’t want to pay more inheritance tax than you need to. A qualified tax adviser can give you guidance on how to reduce this.
Plan for asset distribution
You should put careful thought into who receives each of your assets.
Some consider the recipient’s age, relationship status, and wealth. However, not everyone wants to factor this into their decision-making.
Just make sure that you feel comfortable with the choices you’ve made. And ensure beneficiaries are ready to manage significant assets.
Plan for residuary
If a primary beneficiary dies before you, include a plan for who should receive their share.
This is known as a residuary clause. Your solicitor can offer more guidance in this area.
Assign outstanding debt payments
Provide clear instructions for how any outstanding debts, bills, taxes, or fees should be paid from your estate. This will avoid disputes later.
Outline preferred burial procedures
You should give guidance on how and where you want to be buried or cremated. Make sure that anything you care about deeply is communicated.
