“I am now starting my Monday in a cloud of despair!” said a friend recently, after we had been talking about why she didn’t have a will.
I’ve heard so many reasons over the years. Some of them may sound familiar to you:
“I don’t need to do this until I get older”
We don’t choose when we leave this mortal coil. The death of someone younger often jolts people into action.
“I don’t have anyone to leave things to, so it isn’t relevant”
If you have no relatives, then your estate will pass to the Crown. If you feel what you have would benefit someone or perhaps a charity, then making a will is the way to go.
“We have a complicated family situation, and I don’t know where to start”
All the more reason for making a will! The complications of blended families make inheritance planning imperative if you want your family to not fall out when you have gone.
“I don’t have any assets or money, so it doesn’t matter”
A will appoints executors to close down your estate and pay any debts. Once you start going through your assets, you will be surprised at how much you have.
“If I make a will, it might hasten my death!”
I thought this for many years – wondering, apart from the obvious, how could I move past this fear? Putting together a Justin Case Exit Plan does help. It gives you a sense that you are more in control of your life, so you can maximise the time that you have – however long or short it might be.
Making a will is definitely one of those “Mañana” jobs but, because of this, many clients find themselves caught in a cycle of indecision. It’s understandable (thinking about our own mortality is difficult) and, with the complexities of modern families, it’s rarely as simple as leaving everything to children or siblings. As one client put it, once you start the process, a whole host of other considerations – life insurance, pensions and more – come to light. What initially seems like a small task can quickly feel like a mountain instead of a molehill.
It’s crucial to tackle these matters – especially if you’re in a relationship or have children or dependents. Things like rental agreements, mortgages, property ownership and joint bank accounts all carry implications if you pass away; however, once everything is in order, it’s a tremendous burden lifted off your shoulders.
Getting started
With my clients, the conversation often arises when we are filing financial paperwork. As we work through the papers, a picture arises of how someone’s finances fit together.
This is the key starting point because, before you draft your will, you have to get certain information together – including:
Overview of your assets and debts: Having this information helps your executors to pay off any debts. If you have joint debts, then the other person assumes responsibility. If there aren’t sufficient funds then your executors have to negotiate a final resolution.
Your list of beneficiaries (family, friends, godchildren, favourite charities etc.): During our paperwork disentanglement, clients will often talk about their family and the many nuances that might occur. This helps to clarify what they want to do, or questions they would like to ask about particular situations such as guardianship and adult dependents.
List of chattels or family heirlooms: This might sound a bit grand, but there are lots of items that people cherish as part of the family history. Mine was a China tea set that I remembered my gran really valued and was part of my childhood memory. I now have it and use it regularly.
Finally, who are going to be your executors: This is a big job, so you need people who are organised. Some people leave it with the solicitor or accountant, but they will charge fees, which can be quite chunky if there is a property to sell! If you have a family member/a trusted friend who is prepared to take it on in conjunction, you can keep costs down. The more organised and the more you have communicated your wishes, the smoother this process will be. On the other hand, if you don’t organise anything and you have lots of fighting family members, then this is a great job to give to your worst enemy!
With this information in hand, I feel it is important to always consult a professional. DIY wills might seem a cheap solution but having an expert look at the overall picture can help identify any potential problems. For complex situations, a specialist in estate planning is recommended. This can also aid in managing Inheritance Tax (IHT) if applicable. Take your time and seek recommendations. In some cases, you may want this person to act as your Will’s Executor, so choose someone reliable.
I often find that my clients need advice that bridges the gap between solicitors and accountants. I recommend finding a firm with estate planning expertise – ideally someone with both an accounting or legal background, and qualifications in writing wills, estate and trust administration, and probate. This ensures comprehensive advice.
The biggest gift you can give your loved ones is to organise your estate and your will is a critical piece of the jigsaw. It will help your loved ones be one step ahead of the unexpected.
