Showing posts with label making a will. Show all posts
Showing posts with label making a will. Show all posts
Thursday, 5 November 2009
Making a Will on behalf of someone else
Can you make a Will on behalf of someone else? The answer is yes. You can make a Will on behalf of someone else (normally another family member) however for the Will to become fully legal, it must be signed by the person who's Will it is. It will then have to be witnessed accordingly.
Friday, 24 July 2009
Inheritance Tax issues when making a Will
There are many things to consider when it comes to making a will.
Inheritance tax is one of those issues that is not always at the top of the list for reasons to begin making a will particularly in the early stages of your life when making a will is probably a result of getting married, and most likely when you have your first child.
The issue of inheritance tax is often brought up by ifa's who in making assessments of your current affairs would be expected to think about what you have incorporated in your existing will if you have one and any changes in your will that will need to be incorporated when making a will.
As you get older and hopefully accumulate some wealth especially through property which although can fluctuate in value just like stocks and shares, generally they tend to remain steady and usually go up in value. So when maybe your first will writing exercise did not take into account inheritance tax issues, as you get older it is quite likely that your total estate and assets with one maybe two properties could cause a problem for those that are left to deal with your estate.
When you initially were doing your fact finding into making a will you would have selected two executors to administer your estate, and part of that duty will involve making sure that all debts are paid from the estate and what ever is left will form the residual upon which your liability for inheritance tax is then worked out.
With tax rates due to go up it seems anything over the current band that will rise upto £350,000 by April 2010 will attract taxation either at 40% or maybe even the new rate of 50%. So when making a will if you think the net value (after all debts are paid) of your estate is likely to incur inheritance tax it's wise to seek professional advice to help with your will writing.
Inheritance tax is one of those issues that is not always at the top of the list for reasons to begin making a will particularly in the early stages of your life when making a will is probably a result of getting married, and most likely when you have your first child.
The issue of inheritance tax is often brought up by ifa's who in making assessments of your current affairs would be expected to think about what you have incorporated in your existing will if you have one and any changes in your will that will need to be incorporated when making a will.
As you get older and hopefully accumulate some wealth especially through property which although can fluctuate in value just like stocks and shares, generally they tend to remain steady and usually go up in value. So when maybe your first will writing exercise did not take into account inheritance tax issues, as you get older it is quite likely that your total estate and assets with one maybe two properties could cause a problem for those that are left to deal with your estate.
When you initially were doing your fact finding into making a will you would have selected two executors to administer your estate, and part of that duty will involve making sure that all debts are paid from the estate and what ever is left will form the residual upon which your liability for inheritance tax is then worked out.
With tax rates due to go up it seems anything over the current band that will rise upto £350,000 by April 2010 will attract taxation either at 40% or maybe even the new rate of 50%. So when making a will if you think the net value (after all debts are paid) of your estate is likely to incur inheritance tax it's wise to seek professional advice to help with your will writing.
Emotional issues involved in making a Will
A major problem for anyone writing a will is overcoming the emotional issues associated with making a will. It's hard to think about your own death and what will happen when you die and who will be left. Writing your will, will surely bring a lot of the issues you don't want to face to the surface. It is probably a reason why so many people start their will but then find dealing with the issues too much and stop.
The emotional issues involved in writing a will is almost certainly a key reason a lot of people prefer to use someone to help them in writing their will because they can ask the awkward questions and often help you sympathetically reach decisions about yourself resolving any problems where previously you may not have thought could be overcome.
Professionals have heard it all before, so your will is no real problem to them but is a real emotional problem to you. However, many people once they have completed their will for the first time feel far better for having done so.
Online wills are a good way to overcome the emotion as well because they silently ask the questions that need answered on a screen and you just fill it in, pay, press a button and the will is delivered to you over the web.
Of course like with any legal document especially one that often is all about the future, you should visit the detail every now and then and consider bringing your will up to date. There may be inheritance issues that you can now cover in your new will, maybe someone you wanted to leave a gift to is now dead or no longer as important to you as they were earlier. If you marry, divorce, re-marry or stay single every one of those events create issues that should make you go back to the subject of will writing, but if you have done it before the emotional issues should hopefully be easier to overcome.
The emotional issues involved in writing a will is almost certainly a key reason a lot of people prefer to use someone to help them in writing their will because they can ask the awkward questions and often help you sympathetically reach decisions about yourself resolving any problems where previously you may not have thought could be overcome.
Professionals have heard it all before, so your will is no real problem to them but is a real emotional problem to you. However, many people once they have completed their will for the first time feel far better for having done so.
Online wills are a good way to overcome the emotion as well because they silently ask the questions that need answered on a screen and you just fill it in, pay, press a button and the will is delivered to you over the web.
Of course like with any legal document especially one that often is all about the future, you should visit the detail every now and then and consider bringing your will up to date. There may be inheritance issues that you can now cover in your new will, maybe someone you wanted to leave a gift to is now dead or no longer as important to you as they were earlier. If you marry, divorce, re-marry or stay single every one of those events create issues that should make you go back to the subject of will writing, but if you have done it before the emotional issues should hopefully be easier to overcome.
Don't put off making a Will if you're single
Are you single? Then you should think about making a will to ensure that your belongings pass to the people that you want to benefit. Without a making a will your assets are likely to pass to your next of kin under the "Intestacy Rules". The Intestacy Rules provide an order of Beneficiaries starting with your parents and moving on to your brothers, sisters and remoter relatives.
People often think "I have nothing to leave so why bother making a will". Well remember you maybe an owner of a house and there may be a considerable amount of equity which you will want to pass to your nominated Beneficiaries. You may also subsequently acquire assets, so making a will is extremely important.
Wills are strict legal documents, which have to be signed and witnessed in a very specific way. The Wills Act requires that a Will is in writing and signed by the person making a will in the presence of two independent witnesses both of whom must be together (not a couple).
Any verbal changes to a Will are not valid and it is, therefore, very important that any changes to an existing Will are made by either creating a brand new Will or by Codicil.
So if you're single, making a will is a wise move to ensure your loved ones are provided for.
People often think "I have nothing to leave so why bother making a will". Well remember you maybe an owner of a house and there may be a considerable amount of equity which you will want to pass to your nominated Beneficiaries. You may also subsequently acquire assets, so making a will is extremely important.
Wills are strict legal documents, which have to be signed and witnessed in a very specific way. The Wills Act requires that a Will is in writing and signed by the person making a will in the presence of two independent witnesses both of whom must be together (not a couple).
Any verbal changes to a Will are not valid and it is, therefore, very important that any changes to an existing Will are made by either creating a brand new Will or by Codicil.
So if you're single, making a will is a wise move to ensure your loved ones are provided for.
What can happen if you don't make a Will
If you die without making a will it means your estate will pass in accordance with the Administration of Estates Act 1925.
This covers your property and personal belongings including savings. If you die without making a will, your spouse and children do not automatically receive everything in your estate. There is a strict order under the Act which determines who gets what.
Many excuses are used for avoiding making a will which can include:
Making a will need not be expensive or time consuming and making a will online is a simple and convenient method which will suit a growing number of people who lead busy lives and would prefer to make a will in the comfort of their own homes.
For those who consider making a will to be a depressing task, it is far preferable to make a will while you are fit and healthy and enjoy the rest of your life with peace of mind.
This covers your property and personal belongings including savings. If you die without making a will, your spouse and children do not automatically receive everything in your estate. There is a strict order under the Act which determines who gets what.
Many excuses are used for avoiding making a will which can include:
- "I'll get round to it"
- "Making a will is depressing"
- "I'm not worth anything anyway so what's the point in me making a will"
Making a will need not be expensive or time consuming and making a will online is a simple and convenient method which will suit a growing number of people who lead busy lives and would prefer to make a will in the comfort of their own homes.
For those who consider making a will to be a depressing task, it is far preferable to make a will while you are fit and healthy and enjoy the rest of your life with peace of mind.
Keeping your Will up to date
People's lives can change very quickly so it is advised to review things regularly and making a will afresh if required. Wills should be formally reviewed at least every 5 years and certainly on the happening of any of the following events:-
- Making a will or the decision to change an existing will is often triggered by the death of a spouse or close family member.
- Divorce or separation is another major reason people think about making a will, to ensure their new wishes are taken care of.
- A marriage or remarriage should be an obvious reason for making a will as would the birth of any children. It is essential when making a will to carefully consider the interests of the children when making provisions for them.
- Moving house can also be a time for people to review their will or consider making a will for the first time and surprisingly starting a new business also triggers people to consider making a will.
- A receipt of a bonus or cash windfall or inheritance from a relative is certain to make anyone who had been putting off making a will, think again now that they have obvious assets to leave to their dependants.
- Serious illness or redundancy are often life-changing events which trigger making a will as is retirement.
Who to choose as an executor of your Will
When you begin making a will it is crucial to consider who to choose as an executor. An Executor is someone who deals with the management of the estate and assets of someone who dies. An Executor is appointed because he or she is trusted by the person making a will and is in charge for collecting in the assets of the estate and administering them to the Beneficiaries named in the deceased‚ Will.
An Executor can be an individual or a trust corporation if required. Quite often more than one Executor is appointed by someone who is making a will. Where more than one Executor is appointed the Executors have to act together and make decisions by a majority.
An Executor has to be over 18 and cannot be bankrupt.
Executors can benefit from the deceased, Will.
Executors always have to act in the best welfare of the Beneficiaries and are often also appointed Trustees.
An Executor job begins immediately after the death and finishes once all of the assets have been distributed.
I am making a will - who do I name as an Executor?
When making a will, you should always appoint someone who:-
The responsibility of an executor is, therefore, of vital importance to anyone considering making a will.
An Executor can be an individual or a trust corporation if required. Quite often more than one Executor is appointed by someone who is making a will. Where more than one Executor is appointed the Executors have to act together and make decisions by a majority.
An Executor has to be over 18 and cannot be bankrupt.
Executors can benefit from the deceased, Will.
Executors always have to act in the best welfare of the Beneficiaries and are often also appointed Trustees.
An Executor job begins immediately after the death and finishes once all of the assets have been distributed.
I am making a will - who do I name as an Executor?
When making a will, you should always appoint someone who:-
- You trust implicitly
- Is of more or less the same age as you
- Is 18 or over and not bankrupt
- Is financially wise or has a close association with the family
The responsibility of an executor is, therefore, of vital importance to anyone considering making a will.
What happens to my estate when making a Will if my partner has already died?
If you are thinking about making a will and especially if you do not have a surviving spouse or civil partner and die without making a will but have natural children then your children will share everything, and if they have died before you then their children (your grandchildren) will inherit your children's share.
Without making a will and without any surviving children or other direct descendants (grandchildren, great grandchildren etc.), your estate will be inherited by your other relatives in the following order:
The rules are clear but not necessarily what you would like to happen and of course some things may never pass to those you wanted to benefit from your estate. Making a will is probably the only way you can ensure your wishes will be carried out.
Without making a will and without any surviving children or other direct descendants (grandchildren, great grandchildren etc.), your estate will be inherited by your other relatives in the following order:
- your parents;
- your brothers and sisters of the whole blood, or their children if your siblings have died;
- your brothers and sisters of the half blood, or their children if there is no surviving parent;
- your grandparents;
- your uncles and aunts of the whole blood or their children;
- your uncles and aunts of the half blood or their children;
- the Crown.
The rules are clear but not necessarily what you would like to happen and of course some things may never pass to those you wanted to benefit from your estate. Making a will is probably the only way you can ensure your wishes will be carried out.
Thursday, 23 July 2009
The importance of appointing guardians
A guardian is the person who will be parenting your children when you die.
If you do not appoint a guardian when making a will and the Will is called upon whilst the children are still considered to be "minors" in age i.e under 18 years old then matters can be complex particularly if there are large assets to be distributed.
If you should die without making a will and fail to select a guardian, the courts will decide who takes care for your "minor" children. The decision may be alrightbut selecting a guardian when making a will, will ensure that your children are looked after as you would have wished to do so. The court system does not know your children and can't have any understanding whatsoever of your wishes for them without stating who you want to be guardians by making a will.
If you have "minor" children at the point you are making a will naming a guardian for them is one of the most important considerations that as parents you will probably discuss with each other. This can be the sort of question that takes a lot of time to answer however you can always change your Will later to suit the childrens needs as they get older and it is often considered good practice to name a minimum of 2 guardians and maybe 2 substitute guardians.
Making a will is perhaps the most important legal document you will make. Without one, the courts and not you-decide what happens to your assets. They can even decide what happens to your children.
Forms to appoint legal guardians in accordance with section 5 of the Children Act 1989 are easy to obtain and can be completed whilst making a will and held in addition or alongside your will.
If you do not appoint a guardian when making a will and the Will is called upon whilst the children are still considered to be "minors" in age i.e under 18 years old then matters can be complex particularly if there are large assets to be distributed.
If you should die without making a will and fail to select a guardian, the courts will decide who takes care for your "minor" children. The decision may be alrightbut selecting a guardian when making a will, will ensure that your children are looked after as you would have wished to do so. The court system does not know your children and can't have any understanding whatsoever of your wishes for them without stating who you want to be guardians by making a will.
If you have "minor" children at the point you are making a will naming a guardian for them is one of the most important considerations that as parents you will probably discuss with each other. This can be the sort of question that takes a lot of time to answer however you can always change your Will later to suit the childrens needs as they get older and it is often considered good practice to name a minimum of 2 guardians and maybe 2 substitute guardians.
Making a will is perhaps the most important legal document you will make. Without one, the courts and not you-decide what happens to your assets. They can even decide what happens to your children.
Forms to appoint legal guardians in accordance with section 5 of the Children Act 1989 are easy to obtain and can be completed whilst making a will and held in addition or alongside your will.
Friday, 15 May 2009
Ensuring your Last Will & Testament is legally valid
Writing a Will is a minefield if you do not get the right advice and make sure when you make a Will that the correct procedure has been followed in order to prevent your Will from being challenged or deemed unlawful.
It can have significant implications for the distribution of your assets after your death, and the tax treatment of your estate. Occasionally, however, simply making a Will is not enough. It is not unheard of for a Will to be challenged, especially when the estate is of a high value or family circumstances lead to a conflict between beneficiaries.
As such, it is vitally important that your Will stands up to legal scrutiny. Many people make a cheap Will using a DIY kit at home, but this can lead to all manner of problems, therefore it is advisable to use a solicitor, Will drafter or an internet Will site which is often cheaper but has had legal approval from a firm of solicitors.
Speak to a solicitor
Some people begin the Will making process by considering making a Will themselves . This is a perfectly reasonable course of action as for some making a Will is relatively simple enough, consisting solely of minimal instructions to executors to complete a basic Will. You can also make a Will online and as long as the site is supported by a solicitor or legal advisor who specializes in advising on Will writing that can be a fast, legally valid cheaper Will writing option. However, in more complex cases it will be necessary to seek proper legal advice. This is particularly true if you are establishing a trust, or if your personal affairs are particularly complex. The golden rule is “if in doubt “ then you should seek professional advice from a solicitor specializing in Wills and probate.
Confirm who your executors will be
You should always check with your chosen executors before naming them in your Will. Executors may be obliged to shoulder a significant burden, and you should clarify the nature of their role with them before completing the document. Furthermore, if you outlive your executors it is vital that you amend your Will accordingly.
If any of the circumstances below occur you should consider altering or re-writing your Will
• The death of a spouse or close family member
• Death of an executor
• Divorce or separation
• Marriage or remarriage
• Birth of children
• Moving house
• Starting a new business
• Receipt of a windfall or inheritance from a relative
• Serious illness
• Redundancy
• Retirement
After particularly significant events, such as the death of a spouse or civil partner, divorce or indeed marriage you may wish to re-write your entire Will. Sometimes as in the case or marriage or a civil partnership, you and your partner may decide to make a joint or mirror Will. At the beginning of every Will is a sentence outlining the fact that the Will you are about to complete revokes all previous such documents and that these previous Wills are no longer valid or of legal relevance and cannot be used in disbursement of your estate.
Always let your executors know if you have changed your Will and where the new Will is stored.
What if I need to set up a trust
Trusts are a very useful legal device, particularly for those who wish to provide for long term care for a family member etc. However, it is important that the document is properly constructed in order that the trusts are valid. You should make sure that you have permission from your chosen trustees before naming them in your Will or any other document establishing a trust. This is specialist advice and it is advisable to speak to a solicitor on the best way of how to make a Will.
Make sure your Will is signed and witnessed properly
If your Will is not signed and witnessed appropriately, then this could lead to the Will writing process being questioned and the Will being deemed unlawful. When you make a Will, it will have to be signed and witnessed by two independent people, i.e. those who are not beneficiaries of the Will. All the witnesses must sign in each others presence together with the person making a Will. Therefore care should be taken to ensure this process is adhered to when making the all important Last Will and Testament.
Storing the Will
Make sure that you keep copies safe; You can store with your solicitor or with a bank for safe keeping. Ensure that all relevant parties (particularly the executors) are aware of its existence and know where to find it. Writing a Will should not be too strenuous a task unless your affairs are unusually complex. Giving consideration to these simple tips should help ensure that your Will is effective, and that your dependents receive the benefits you have intended.
It can have significant implications for the distribution of your assets after your death, and the tax treatment of your estate. Occasionally, however, simply making a Will is not enough. It is not unheard of for a Will to be challenged, especially when the estate is of a high value or family circumstances lead to a conflict between beneficiaries.
As such, it is vitally important that your Will stands up to legal scrutiny. Many people make a cheap Will using a DIY kit at home, but this can lead to all manner of problems, therefore it is advisable to use a solicitor, Will drafter or an internet Will site which is often cheaper but has had legal approval from a firm of solicitors.
Speak to a solicitor
Some people begin the Will making process by considering making a Will themselves . This is a perfectly reasonable course of action as for some making a Will is relatively simple enough, consisting solely of minimal instructions to executors to complete a basic Will. You can also make a Will online and as long as the site is supported by a solicitor or legal advisor who specializes in advising on Will writing that can be a fast, legally valid cheaper Will writing option. However, in more complex cases it will be necessary to seek proper legal advice. This is particularly true if you are establishing a trust, or if your personal affairs are particularly complex. The golden rule is “if in doubt “ then you should seek professional advice from a solicitor specializing in Wills and probate.
Confirm who your executors will be
You should always check with your chosen executors before naming them in your Will. Executors may be obliged to shoulder a significant burden, and you should clarify the nature of their role with them before completing the document. Furthermore, if you outlive your executors it is vital that you amend your Will accordingly.
If any of the circumstances below occur you should consider altering or re-writing your Will
• The death of a spouse or close family member
• Death of an executor
• Divorce or separation
• Marriage or remarriage
• Birth of children
• Moving house
• Starting a new business
• Receipt of a windfall or inheritance from a relative
• Serious illness
• Redundancy
• Retirement
After particularly significant events, such as the death of a spouse or civil partner, divorce or indeed marriage you may wish to re-write your entire Will. Sometimes as in the case or marriage or a civil partnership, you and your partner may decide to make a joint or mirror Will. At the beginning of every Will is a sentence outlining the fact that the Will you are about to complete revokes all previous such documents and that these previous Wills are no longer valid or of legal relevance and cannot be used in disbursement of your estate.
Always let your executors know if you have changed your Will and where the new Will is stored.
What if I need to set up a trust
Trusts are a very useful legal device, particularly for those who wish to provide for long term care for a family member etc. However, it is important that the document is properly constructed in order that the trusts are valid. You should make sure that you have permission from your chosen trustees before naming them in your Will or any other document establishing a trust. This is specialist advice and it is advisable to speak to a solicitor on the best way of how to make a Will.
Make sure your Will is signed and witnessed properly
If your Will is not signed and witnessed appropriately, then this could lead to the Will writing process being questioned and the Will being deemed unlawful. When you make a Will, it will have to be signed and witnessed by two independent people, i.e. those who are not beneficiaries of the Will. All the witnesses must sign in each others presence together with the person making a Will. Therefore care should be taken to ensure this process is adhered to when making the all important Last Will and Testament.
Storing the Will
Make sure that you keep copies safe; You can store with your solicitor or with a bank for safe keeping. Ensure that all relevant parties (particularly the executors) are aware of its existence and know where to find it. Writing a Will should not be too strenuous a task unless your affairs are unusually complex. Giving consideration to these simple tips should help ensure that your Will is effective, and that your dependents receive the benefits you have intended.
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