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Why you should have a will and review it regularly from an early age.

We all know this is an easy subject to avoid.

We intend to show that there are good reasons to write a will at an early age, because accidents can happen.

Do you know the rules of Intestacy?

You should review your Will if -

• you have married, divorced, separated or become widowed
• you have become a parent or grandparent
• you or your spouse have been diagnosed with a life threatening illness
• your children have done any of the above
  
• you intend to start a new business
• you expect to retire, or sell your business, in the next few years
• your financial position has or will significantly change following a lottery win or inheritance
  
• you have a significant Estate and your Will does not have a nil rate band trust

Will your estate have sufficient liquid funds to pay the IHT due on your death?

Does you Will appoint suitable guardians to look after your minor children?

Does your Will have a survivorship clause?  Would one be worthwhile?
Where it is appropriate for a married couple to leave (the majority of) their assets to the surviving spouse on the first death, it may still be in their interest to include a survivorship clause, especially if their combined Estate exceeds the Nil Rate Band.  In the event of deaths in quick succession, as could result from a car crash, the Estate of the second to die will include the Estate of the first to die and incur an Inheritance Tax (IHT) liability.  The amount of quick succession relief is the amount of IHT payable on the first death - which is nil - as the Estate was covered by the spouse exemption.  A survivorship clause of up to six months could save up to £110,000 (the 2005 Nil Rate Band of £275,000 at 40%).

Have you written your life assurance and pension policies in trust for your heirs?

The Exchequer received £2.2 billion in Inheritance Tax in the tax year 2000/01 from 22,000 Estates representing between 3% and 4% of all deaths, an average of £1 million from each IHT paying Estate. 

For more information visit the Law Society feature - http://www.make-a-will.org.uk

If you die unexpectedly, do you have a deputy or arrangements for someone to run your business until it is sold?
If you run a business as a Sole Trader, unless you have a Will and one which contains appropriate provisions, your business has to cease trading immediately on your death and the business bank account will be frozen, so it will not be possible to maintain the value of the goodwill to sell it at its best value.  If you are a Partner in a business, do you know what your Partnership Agreement, or in the absence of one, the general law, provides for your interest in the Partnership?

Have you executed an enduring power of attorney to enable your affairs to be managed if you become incapacitated?

See also Overseas Assets, Inheritance Tax, Inheritance Tax Trap, Inheritance Tax Calculation Request.

Reminder - disclaimer applies. Please feedback your comments.  This page was last modified 24 December 2005.