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A PRACTICAL GUIDE TO MAKING AND CHANGING YOUR WILL WHY MAKING A WILL IS SO IMPORTANT It is a fact that most people suffer from intestacy (lack of a legally valid will). Whilst they will be aware of the fact that they haven't written a Will, they will be unaffected by it during their lives. Intestacy, however, has consequences that could result in serious hardship to loved ones left behind following a death. If you die without making a Will, the law decides how your possessions will be divided, and your spouse may only receive everything if there is no other close relative. This could result in the widow having to sell the family home in order to provide the children with a share of its value. Furthermore, issues of 'who gets what' sometimes result in legal action, which can be both costly and time-consuming. Writing a Will entitles you to make absolutely clear what you want your loved ones to have after your death. It is not just men that suffer from intestacy! Both you and your partner can protect each other by writing separate Wills. Wills are not just about money. If you have young children, you may want to consider who would become their guardian if both parents were to die together. Furthermore, you may wish to set up a Trust fund for your young children or grandchildren and you can do this through your Will. A solicitor can advise on the steps to take to do this, but your Will must establish who the Trust will benefit, what the Trust consists of, whom the Trustees are and what powers they will have. It is possible that you have promised a family member a specific item of value -perhaps an heirloom. If so, it is not enough to tell them, and these wishes can easily be included in a Will. If you die without making a Will and without any close surviving relatives, not only do you forfeit any say in where your money and possessions will go, you will lose the opportunity to benefit those who have been kind to you or those organisations that you support. In fact, everything you leave behind will pass to the State! IMPORTANT POINTS TO REMEMBER WHEN MAKING YOUR WILL 1. Choose a good solicitor Making a Will is not expensive, complicated or time-consuming, but the cost to your loved ones of getting it wrong could be significant. 'Home-made' Wills may be sufficient in the most simple of cases, but, even so, a solicitor will be able to give reliable advice to best suit your circumstances. Furthermore, the will she/he drafts will reflect your wishes to the letter. Your family may already know a solicitor that they can recommend. Alternatively, you could ask a number of solicitors for free estimates. 2. Appoint an Executor Every Will needs to identify a person who will ensure that all of your wishes are carried out after you die. This is the executor, and would usually be someone you know well and trust. As the executor can also be a beneficiary, a husband, wife or grown up children are obvious choices. Furthermore, it is often wise to appoint two executors, in case one of them is unable to act on your behalf. For a fee, a professional person such as your solicitor, accountant or bank manager may act as executor on your behalf. They will have knowledge and experience of tax issues, as well as a full understanding of the responsibilities that go with being an executor. 3. Some information to prepare
* TOTAL LIABILITIES Subtract anything you owe from total e.g.: Mortgage, Bank Loan, HP Agreements, Credit Cards, Tax, Cost of Funeral and administrating estate This will leave you with the total amount you have to dispose to relatives, friends and charities. * Write down the names and addresses of all the people or charities that you wish to help.
NOTE 4. Have Your Will Witnessed. When you are happy with your Will, it will need to be properly signed by you and witnessed. Two independent witnesses are needed, and they and their spouses must be people who have nothing to gain from the Will. All must be present together and sign in each other's presence. A solicitor will ensure that the Will is correctly witnessed. 5. Keep it Safe Keep your Will in a safe place and let someone you trust know where to find it. You could ask your solicitor or bank manager to look after your Will. WHEN SHOULD YOU CHANGE YOUR WILL? A Will that is out of date is of little use to anyone -it can have unintended and unfortunate results or even be unenforceable. It is important to look at your Will periodically. However it is especially necessary when changes occur in your life, such as marriage, separation, divorce, re-marriage, births, deaths or increases/decreases in your wealth. Marriage Separation Divorce HOW DO I CHANGE MY WILL? If you have changed your mind fundamentally about who benefits from your Will, or if your estate changes a great deal in value, you may be best advised to make an entirely new Will. If you are only making minor changes, you can add a short instruction known as a Codicil, to your existing Will. This is a good way of adding new legacies. LEAVING A LEGACY TO THE SIMON PAUL FOUNDATION All gifts to the Simon Paul Foundation and other charities are free of tax. This means that if you make a gift which brings your estate below the current Inheritance Tax Threshold, then no tax is payable. For example, if your estate was worth £254,000 net and the Inheritance Tax threshold was £234,000, then the Inheritance Tax at 40% would be payable on the £20,000 difference i.e £8,000. If you had left £20,000 to a charity, the taxable value of the estate would be reduced to £234,000 and nothing would be payable to the Government in tax. Please refer to the following wording, if you want to help the Simon Paul Foundation in your will. YOUR WILL TO HELP OTHERS If you are considering making a bequest to the Simon Paul Foundation in your Will, here is some information that may be of use. Naturally, the interest of close relatives and friends will come first when you are making a Will, but many people leave the residue (or part of the residue) of their estate to a charity. This is called a residuary bequest. By making a bequest in this way, your gift will keep pace with inflation and will be just as valuable in years to come as it is the day you make your Will. We suggest that you ask your Solicitor to draft your Will, but here is the suggested wording for a residuary bequest: "I give, to the Simon Paul Foundation Limited, The Tower Room, Swanley Library and Information Centre, London Road, Swanley, Kent BR8 7AE (Registered Charity No. 800995)... (enter the word "all" or the size of the share) of the residue of my estate for its general charitable purposes, and I further direct that the receipt of the Administrator or other proper officer of the said Foundation shall be a good discharge for the same". NOTE If you prefer you can leave the Simon Paul Foundation a set sum of money or a specific gift. This is called a pecuniary legacy/specific legacy. Here is our suggested wording. "I give and bequeath to the Simon Paul Foundation Limited, The Tower Room, Swanley Library and Information Centre, London Road, Swanley, Kent BR8 7AE (Registered Charity No. 800995) free of all tax, the sum of £ (amount in words and figures) / (or give a description of the specific gift in place of "the sum of ") for its general charitable purposes, and I further direct that the receipt of the Administrator or other proper officer of the said Foundation shall be a good discharge for the said legacy". Wills continue to be an important source of income for the Simon Paul Foundation. Your bequest will provide a living legacy to enable us to continue to assist physically disabled people who wish to live fulfilled and independent lives in the community. Thank you. |
