Throughout the developed world, a surprising number of adults have failed to create a last will and testament to help manage and distribute their estate in the wake of their passing.
According to Gallup’s latest polling, for example, just 46% of US adults have created a formal will. In the UK, a recent IRN Wills and Probate Research Report has revealed that fewer than four in 10 adults have made a will, with this trend clearly commonplace across the globe.
Of course, making a will may simply seem too complex for many to comprehend. But what are the steps required to create a will? Let’s find out!
Why Should You Leave a Will?
There are many reasons why you should look to create a will. Most importantly, there are specific rules in place that dictate how your cash and assets will be allocated in the event of your death, which will be enacted if you die without a will.
This means that your estate may not be distributed in a way that you’d like, causing your surviving spouse or dependants to endure subsequent financial harm.
If you fail to appraise the value of your estate and create a will, you may miss the opportunity to reduce the amount of tax payable to the Treasury. Currently, estates that are worth in excess of £325,000 will incur a tax rate of 40%, so minimising the size of your estate through gifting and similar methods can negate this risk.
What Do You Want to Leave for Your Family?
Your estate can include a broad range of asset classes, including cash and real estate to individual items such as antique furniture, artwork and classic cars.
Your estate will also include your investment portfolio, which may comprise and shares, commodities or currency holdings that you own at the time of your death.
Ultimately, organising your will requires you to determine which assets you want to gift to which family members. For example, the rising cost of housing in the UK may compel you to gift properties and real estate to your children and younger dependents.
Conversely, older beneficiaries may prefer cash or investment assets, so creating a will enables you to consider these options and make ultimately informed decisions.
Who Will be Your Beneficiaries?
Before you engage with probate law specialists and finalise your will, you’ll also need to decide who will be the beneficiaries within the document.
This consideration is crucial, particularly as even the most considered wills and best-laid plans can result in family drama and conflicts in the event of your death. The risk of conflict and disputes increases if no will exists at all, and such arguments can be exacerbated by grief and feelings of angst.
So, we’d recommend giving careful thought to the identify of your beneficiaries (including your spouse and children), while also making allowances for any money that you want to leave to selected charities.
Once this process is complete, you can finalise your last will and testament. All that’s subsequently left to do is sign the document and store it somewhere safe, to ensure that you can lay your hands on this as and when required.
