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Do you have a will?
We all meet our maker one day and having a valid will is the best way to ensure your assets pass to those you love.
What is a will?
It is a legal document instructing how your assets are to be distributed upon your death. The purpose of a will is not solely to cover your assets, it can also be employed to protect your loved ones. For example, if you have dependent children you can direct who is to look after them if you and your partner both pass away, and it can also let their nominated guardians know at what age they can receive their inheritance.
Who can write a will?
Anyone can write a will, but it must be properly signed and witnessed to be legally valid. 1MUM would recommend you seek professional advice from a solicitor to have one written.
What happens if I die without a will?
Essentially the government will decide how your assets are to be distributed. You will have died 'intestate', which means that a fixed set of rules will be used to distribute your assets. This of course may not be how you want your assets dispersed.
1MUM’s top reasons for having a will:
1. It will enable you to decide how your major assets are to be distributed upon your death ... not the government or any other party!
2. It will make life far easier for those who follow you, as it will stipulate your wishes and intentions.
3. You can ensure any special family heirlooms are passed to a specific person, e.g. your wedding ring to your daughter.
4. You can use your will to establish entities such as trusts. Trusts are a method of controlling your assets and can be used to protect your loved ones’ inheritance and can reduce the amount of tax payable by your loved ones after your death.
5. You can use your will to take into account any loans you have made to your children so others will not be disadvantaged. Alternatively, you can use your will to forgive such debts.
6. You can use your will to exclude a person/people from your will to ensure they do not benefit from your death. This can have many legal connotations and you would be advised to seek the advice of a solicitor if this is something you intend.
By Sally Tyrie, June 2013
Money Smart not Money Short
Keep reading...
1. Life insurance - are you insured? May 2013
2. Do you have a power of atorney? COMING SOON
3. Do you have a medical guardian? COMING SOON
