What happens if I don’t have a Will?
When a person dies without leaving a valid Will, their property (the estate) must be shared out according to certain rules. These are called the rules of intestacy. Only married or civil partners and some other close relatives can inherit under the rules of intestacy. If there are no surviving relatives who can inherit under the rules of intestacy, the estate passes to the Crown. The Citizens Advice Bureau explain the rules of intestacy in more detail on their website.
What happens if I do have a Will?
The named executors in your Will (the people nominated to deal with your estate) will need to get what is known as a 'grant of probate' (in Scotland, this is called ‘confirmation’). Your executors will then be able to distribute your estate in line with your wishes specified in your Will. You can find more information about probate and the role of an executor on the gov.uk website.
Why do I need to update my existing Will?
Solicitors recommend we update our Wills every 5 to 7 years to ensure they still reflect our wishes, especially if:
- You have moved house – the value of your estate may have increased or decreased when you moved and this may affect the amount of inheritance tax your beneficiaries will have to pay.
- You have married or separated – your existing beneficiaries may need to be changed to reflect your new status.
- You have welcomed a new family member – you may wish to update your Will and include a new beneficiary.
Don’t forget - You can use our Free Will Writing Services to update your Will for free using a local solicitor.
Different types of Wills
Your solicitor will help you choose the right Will that suits your circumstances and your wishes. Here are some of the most common types of Wills in the UK:
Single Will
A single Will outlines what a person wants to happen to their assets and affairs after their death. This includes final wishes such as a funeral arrangements and provisions for the care of any children.
Mirror Will
Mirror Wills are a pair of almost identical Wills made by two people, often spouses or partners, who share similar wishes.
Trust Wills
A Trust Will (also called a Will trust) is an arrangement where a named Trustee is appointed to distribute a person's assets and manage them on behalf of the beneficiaries according to the terms outlined in the Will. There are different types of Will trusts to choose from depending on your wishes.
Living Will
A Living Will is a legal document that states a person’s preferences for future healthcare decisions, particularly in cases where they become unable to communicate their wishes. This includes choices regarding medical treatment or end of life care.
Different types of gifts
There are various types of gifts you can leave in your Will, so you will need to consider which options are best for you and your loved ones. Here are some of the main types of gifts that people choose to leave:
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A residuary legacy is a percentage of your estate (everything you own) once all debts, funeral expenses and cash legacies have been paid. One advantage of residuary gifts is that they are inflation-proof. Many people choose to support charities by leaving them a residuary percentage – even 1% of your estate can make a big difference.
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A pecuniary legacy is a fixed amount of money. Gifts like these can be linked to inflation (index-linked) which means your gift can retain its intended value over time. For example, if you had left an index-linked gift of £500 in a Will written in 2000, it would be worth over £800 today.
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A specific legacy is a particular item, such as a piece of jewellery, a house, an item of furniture.
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A life interest trust allows you to leave a gift to a loved one that they can benefit from in their lifetime. On the event of the loved one’s death, the gift then passes to a second beneficiary chosen by you. For example, this gift might be property or possessions.
How to work out your estate
When you write your Will, you need to think about your assets – what you own – and liabilities – any debts you might owe. Your assets and liabilities could include the following:
• All your money and savings, including pensions and shares
• Your belongings, including your home, car and valuables
• Any assets you may own jointly with someone else
• Any foreign assets you may own
• Any other assets you have, such as royalties or digital assets
• All the debts you have, including your mortgage and taxes due.
The total value of your estate will be your assets minus any liabilities. Your family or executors will be able to recover the cost of your funeral from your estate before it is distributed.
What is Inheritance Tax?
Inheritance Tax is a tax on your estate (your property, money and possessions) if the value of your estate is £325,000 or more. The standard inheritance Tax rate is 40%. It’s only charged on the part of your estate that’s above the threshold.
It is the responsibility of your executor to pay the inheritance tax to HM Revenue and Customs (HMRC) from your estate funds. Your beneficiaries (the people who inherit your estate) do not normally pay tax on things they inherit.
Your estate could be exempt from incurring inheritance tax if you leave everything above the £325,000 threshold to your spouse, civil partner, a charity or a community amateur sports club.
All gifts left to charities in your Will are exempt from inheritance tax. If you leave 10% or more of your net estate to charity, your inheritance tax rate drops from 40% to 36% for the remainder of your estate. With less money spent on tax, this could mean your other beneficiaries inherit more of your estate.
Your solicitor will be able to advise you on how inheritance tax may affect your estate. There is also more information about inheritance tax on the gov.uk website.
Where do I keep my Will?
There are no rules on where to store your Will, but it is recommended to keep it in a safe place such as:
- At home
- With a solicitor or accountant
- At a bank
Or, you can leave it with trusted organisations like: