Posted on 8.1.16 by Tasoula Addison
Make now the time to choose a New Year’s resolution and stick to it. But not any old resolution like you’ve made in the past: give up chocolate, go to the gym, be tidier; why not make 2016 the year you make a real life-changing resolution?
Plan for your future by not just thinking about it, but acting on it, get your financial affairs in order and look after your loved ones all at the same time. How? All of this can be done by making one, incredibly important document: a Will.
Many people automatically believe that even just thinking about making a will is a job left for the more elderly people, but how wrong this is. Making a will is no different to taking out home, life, car or holiday insurance – it protects you against unforeseen future events. An astounding 65% of UK adults, however, still have not made a valid will.
Housekeeping and Financial Affairs: How will a will help you and save your family money
Using the New Year as an impetus to get your affairs in good order is a very smart, forward-thinking move. Making a plan for your estate, everything you own, will give you a fresh start with your financial housekeeping and really will take a huge weight off your shoulders. Passing away without a valid will means your whole estate being shared out according to the rules of intestacy, as set out by the law, and not by your wishes and desires.
When you come to plan a will, it’s best to sit down and analyse all of your assets, such as your home, car, investments, savings, pensions and possessions. Doing this will help you greatly when it comes to assessing your inheritance tax exposure, potentially helping you to save a large amount in the future. It can also help to clarify what you want to leave to who.
You may have taken out a life insurance policy to help your family when you’re not around, but if this policy isn’t written into a trust in your will, the lump sum will fall within your estate and therefore the inheritance tax rules – potentially creating a big bill for your family that could easily have been avoided.
Investing Money Wisely
With Christmas finished this time around, January is a notoriously busy time to make a will, perhaps due to people thinking about organisation their affairs and strains in relationships coming to the surface.
There are now many options when it comes to drafting a will, but not all are equal on quality. You can make a DIY will or use a will writing service, but these are not regulated, not legally qualified nor are they insured. For the wise, there is only one true option and that is to use a professional solicitor, who is regulated, qualified, insured and an expert in what they do. Spending a little more money from the outset on a truly quality level of service can help you save potentially thousands in the future as the slightest mistake when drafting a will can surmount to a costly Court process to correct, many of which have been in the news lately.
Particularly Important to Plan after a Change in Circumstances
A question that is often asked is “how often should I change my will?” A general rule of thumb is that you should review your will every 3-5 years. It may be that nothing has changed during that time, and your current will is still relevant, but it is important to check that your will still reflects your wishes. There are a number of life events that might necessitate an update to your will:
- Having a child or grandchild
- Getting married or remarried
- Getting divorced or separated
- Moving house
- If the executor named in your will dies or is no longer appropriate
Our lives change regularly and as a result so do our wishes and desires. If you don’t keep your will up-to-date and relevant to your current circumstances, someone may end up benefitting for your estate and finances who you wouldn’t want to. More importantly on the flip side, someone you truly care about may miss out.
As you can see there is so much more to making a will. It’s a vitally important document that can address a number of issues to help give you peace of mind for the future.
Get in contact today on 0161 930 5151 or visit our dedicated page gorvins.com/act-on-it.