More than half of UK adults have not written a will, including 53 per cent of those aged 50 to 64. If you die without one, your estate - personal possessions, money and property - is distributed under the rules of intestacy, a legal framework that decides who benefits.
A rigid legal framework
The intestacy rules are fixed and can override personal wishes. They make no provision for unmarried partners, for example, and also determine who has the right to administer the estate. In Scotland, an unmarried partner can apply for a share of the estate, but the court has discretion and strict time limits apply.
Dying without a will can also make estate administration noticeably more expensive. In Scotland, an insurance bond is usually required in such cases, adding both cost and delay.
Why making a will matters
A will is the only way to ensure, as far as possible, that your estate passes to the beneficiaries you choose. It also lets you name executors, appoint guardians for young children, make cash gifts or gifts of specific items, and record funeral wishes. A trust structure may also be built into a will to protect beneficiaries or give future generations flexibility for their own wealth and tax planning.
Sally Cook, a wills, trust and estates lawyer at Weightmans, said: "Not many people want to contemplate writing a Will and the implications of what that means; however, it is important to protect your family and assets by doing so.
"Getting your affairs in order will provide peace of mind that your wishes will be carried out, your loved ones will be appropriately provided for, and any potential family disputes are mitigated. Inheritance tax can also be planned for in advance, allowing you to pass on more to your loved ones."
Ultimately, a will helps ensure family members receive what you intend for them after your death, and specialist legal advice is a key part of that process.
Donna Brennan, a specialist in Scottish succession law at Weightmans, added: "It is also important to ensure that you take advice in the correct jurisdiction - succession laws in Scotland and the rest of the UK are quite different, so if you are domiciled in Scotland or have assets there, appropriate advice should be taken. At Weightmans, we have experts in both jurisdictions."
Will your estate pass to your spouse or partner?
It is not automatic that a spouse inherits the entire estate under intestacy rules. These rules are constantly changing, and the result of dying without a will can be surprising and often unjust. Only a will can ensure your loved ones are provided for according to your wishes.
In Scotland, a spouse or civil partner has certain prior rights on intestacy that can exhaust the estate, but only up to a level that is subject to change. Unmarried partners receive no provision under the intestacy rules, so a will is the best way to provide for a cohabiting partner. In Scotland, cohabitees can make a claim, but strict timeframes apply and the outcome is not guaranteed.
When should you update your will?
You should consider updating your will whenever your personal or financial circumstances change. Examples include:
- Getting married - in England, marriage automatically revokes an existing will, though this is currently being reviewed by the Law Commission. That is not the case in Scotland, which is another reason an existing will should be updated.
- A change in family circumstances, such as having children or grandchildren.
- Divorce.
- Significant changes to your financial situation.
It is recommended that you review your will every three years to check whether changes in the law or tax allowances could affect it and your wider estate planning.
Can you include cryptoassets in your will?
Cryptoassets held in your individual name automatically form part of your estate on death. It is not always necessary to mention them specifically in your will, but you should make sure your will gives your executors enough powers to deal with those assets after your death.
It is also important to tell your professional advisor about any cryptoassets you own, so they can discuss with you what arrangements are in place for the assets to be accessed after you die.
