A will is an important legal document that outlines your wishes for the distribution of your assets and the care of any dependents after your passing.
Writing a will can be a complex process, and it is essential to consider several factors to ensure that your will accurately reflects your desires. In this article, we will discuss some key things to consider when writing a will.
Start by Planning it Out
One of the first steps is to plan things out by preparing a list of all property, assets and other possessions you own.
This is known as your “estate” and may include:
- Property and assets (if joint owned these usually pass to the surviving owner, such as a spouse)
- Pension benefits or life insurance policies
- Physical items such as cars, jewellery, furniture, etc.
- Bonds, shares, bank account details, savings
- Royalties
- Debts and liabilities (which may be paid off by sales from your estate, leaving beneficiaries the remainder).
You may also wish to leave instructions or wishes about your funeral service, in order to help and make things easier for your loved ones. For example, you may have desired funeral directors that you recommend be used, you may have even purchased a pre-paid funeral plan from them. It’s important to note that funeral wishes in wills are not legally binding.
The will may even be received after funeral plans have started, so it’s best to let those closest to you know any personal wishes.
Name Your Beneficiaries
One of the most important aspects of writing a will is identifying your beneficiaries. These are the people your estate will go to. Consider those financially dependent on you, such as your spouse or children. You’ll also need to make it clear how exactly your estate will be shared amongst multiple beneficiaries.
Beneficiaries can include not only family members but also close friends, organisations and charities. It is important to consider who will inherit what and how your assets will be divided.
Estate Planning
Estate planning is an important aspect of writing a will. This involves considering what will happen to your assets after your passing, such as your property, investments, and personal belongings.
You will need to consider how you would like your assets to be distributed, who will manage your estate, and whether there are any special considerations, such as tax implications, that need to be taken into account.
Guardianship of Dependents
If you have young children or other dependents, it is essential to consider who will care for them in the event of your passing. This includes designating a legal guardian for your children, as well as making provisions for their financial and emotional needs. You should also consider who will take care of any pets you may have.
Name an Executor
The executor of your will is the person responsible for carrying out the instructions outlined in your will. It is important to choose an executor who you trust and who has the time, resources, and abilities to fulfil their duties.
Consider factors such as their financial and legal knowledge, as well as their relationship with you and your beneficiaries. A beneficiary may also be the executor.
Legal Requirements
Whilst you can write your own will, it is a legal process, so you should consider seeking the advice of a legal professional to ensure that your will is legally binding and meets all relevant requirements. They can even write the will on your behalf, for a fixed fee.
You’ll also need to factor in formalities required to make the will valid, such as witnesses and signatures. You need at least two other people to witness and sign, who must not be beneficiaries.
Changes and Updating
Life is full of changes, and it is important to consider the possibility of changes in your circumstances and update your will accordingly.
This includes changes in your family, financial, and personal circumstances, as well as changes in the law. Regularly reviewing and updating your will can ensure that your wishes are always reflected in your legal documents.
Inheritance Tax
Inheritance tax needs to be considered when writing a will, as it can have a significant impact on the distribution of your assets.
Seeking the advice of a financial advisor can help determine the potential impact of inheritance tax on your estate and ensure that you have taken all necessary steps to minimise this impact.
Final Thoughts
In conclusion, writing a will is an important and complex process that requires careful consideration of various factors.
By planning accordingly, you can ensure that your will accurately reflects your wishes and provides for your loved ones after your passing.
