If you’re reading this post, the chances are you’re thinking about writing a will.
Are you making any of these 5 common mistakes?
1. Putting it off until tomorrow
As we said, you may be thinking about making a will. You know you should, but it keeps slipping down the priority list.
Inertia is one of the most common reasons why people fail to make wills. Everyone thinks they have enough time. We don’t want to put a dampener on your day, but tomorrow isn’t guaranteed. Anything can happen.
Making a will guards against the unexpected. It answers 3 questions:
- What happens if I’m run over by a bus tomorrow?
- What if something bad happens to my loved ones?
- Estate planning. How will my assets be divided up?
It provides peace of mind for you, and for the people you leave behind. It’s the ultimate unselfish act.
OK, making a will is not the most fun thought you’ve had today — but actually, it’s painless. You may even enjoy the experience. Lots of people do.
Making a will isn’t arduous, and it’s not expensive… which brings us to the next common mistake.
2. Assuming it costs a fortune
Back in the old days, you needed a solicitor to draw up a will. You’d make an appointment, visit their offices, and come out of the door significantly poorer — by as much as £700.
It’s not like that any more.
These days, you can do the whole thing on Zoom with an online provider. It’s easily affordable.
Dying without a will in place… That’s when things get expensive. And messy.
Under those circumstances, your assets are divided according to the strict, inflexible laws of intestacy. For those left behind the process is long, excessively bureaucratic and it can cost a fortune in fees, taxes and `lost’ assets.
3. Failing to update it
Let’s imagine you’ve made your will. Phew! It’s done. You can leave it in a drawer and forget all about it.
Sadly, you can’t. Failing to update a will is a mistake because, to put it simply, life happens. Changes to your life can include:
- Marriage
- Divorce or separation (read Changing your Will after Divorce)
- Children, stepchildren, your children’s new partners
- Death of a relative
- Change in financial circumstances
…and a whole lot more we haven’t mentioned.
It’s recommended that you update your will every 7-10 years. Even if you’ve lived an uneventful life, the value of your estate will have changed.
4. Forgetting assets
When it comes to bequeathing your assets, some are obvious — property, jewellery, cars, savings, investments and so on.
What about the less obvious assets? Digital assets, for example.
Photos stored online, emails, bank accounts, websites, social media accounts… and depending on your job, the rights to creative assets such as music, written content, design or artwork.
These hidden, easily forgettable assets must be considered when drafting a will.
And don’t forget:
They’re protected by passwords. While you should never include the password details in your will, it’s important to leave clear instructions about them.
In a separate Letter of Wishes, kept with a copy of your will, you can list all your financial and digital assets and the location of their passwords. It can be updated whenever necessary.
By giving useful guidance from beyond the grave, you save Executors the time-consuming task of tracking everything down.
5. Making assumptions
Many people assume that if they die without a will in place, their unmarried partner automatically inherits their estate.
This isn’t the case. Despite the name `common law marriage’, it has no recognition in law. Neither partner has an automatic right to inherit from the other.
Married couples do inherit from each other but again, without a will, the surviving spouse comes up against intestacy laws.
To be honest, when compared to the intestacy process, snails are speedy.
Eventually, your spouse will receive the first £270,000 of the estate. The rest is divided equally amongst the remaining next of kin — and it’s taxable.
Are you thinking about making a will? Have you been putting it off? We provide clear, jargon-free advice to put your mind at rest. Get in touch.