Do ordinary people really need to make a will?

Did you know that an estimated 60% of adults in the UK do not have a will? Which is around 30 million people.

Making a will may not be very high on your list of priorities. Especially if you are young and healthy. And also if you don’t particularly have anything much to leave anyway. After all, do ordinary people really need to make a will?

Interestingly the answer is yes! In this article we explain:

• Why every adult should make a will.
• What would happen if you died without making a will.
• How to go about making a will.
• What to include in a will.
• What to do with a will once you have made one.

Why every adult should make a will

It’s something we don’t like to think about but, no matter how young or fit you are, unfortunately bad things can happen. And in the worst case scenario, if you have a will it would make things easier for your family at this very difficult time. They will know what you want them to do with your estate after you die, so that things can be sorted out as quickly and simply as possible. 

But what is your estate? It sounds very grand, and many of us would not expect it to apply to us. But it does. Your estate includes:

• Any property you own, including your main home;
• Money in any bank or building society accounts;
• Any shares or investments;
• Money from any life insurance policies;
• Any money that is owed to you by others;
• All your other personal possessions.

Your estate will also take into account any debts you have, including:

• Remaining mortgage on your home;
• Rent due or owing;
• Secured or unsecured loans;
• Credit card balances.

All of the above need to be repaid from the value of your estate.

What would happen if you died without making a will

If you die without making a will, this is known as being “intestate” and certain rules then apply. The Rules of Intestacy will allocate your estate to your surviving relatives in the following order:

• Your spouse/civil partner will receive the entire estate if you have no children and the first £250,000 if you do.
• If you have a spouse/civil partner and children, anything over £250,000 will be shared equally between them all.
• If you have no spouse/civil partner, but do have children, your entire estate will be shared equally between the children. 

Be aware that if you die intestate, nothing is provided for either a partner who is not a spouse/civil partner or any stepchildren. This can result in one of your next of kin having to apply for probate to sort out any other possible claims on your estate. Probate enables them to obtain a Grant of Letters of Administration which authorises them to distribute the rest of your estate amongst all the different claimants. This can be difficult and stressful, which is the last thing you would want your family to have to go through.

But how do you actually go about making a will?

How to go about making a will

You can either write a will yourself, or find a solicitor to do it for you. 

• Write a will yourself

If you are at least 18 years old and are of sound mind you are legally able to write a will yourself if you want to do so, and are not being pressured by anyone else. The will has to be in writing and needs to be signed by you in the presence of two witnesses, who must then also sign it.

• Find a solicitor to write your will

Many people prefer to find a solicitor to write their will so that they can be sure there is nothing wrong with it and that there won’t be unforeseen issues after their death. A solicitor will charge for doing this, and changes vary between different solicitors and also on how complicated the will is. 

November can be a good time to get your will done, because there is an annual scheme called Will Aid. Participating solicitors waive their will-writing fees and ask clients to make a voluntary upfront donation to Will Aid, which then goes to nine of the UK’s best-loved charities.

What to include in your will

Whilst it is up to you as to how you divide your estate, you need to make sure that your will includes everything that needs to be in it. 

For example:

• A complete list of everything in your estate and where it is: property, possessions, savings, investments, insurance policies, pensions, bank and building society accounts;
• A list of any money that you owe, and details of how to access the relevant accounts;
• A list of all the people that you want to leave something to – the “beneficiaries” of your will; 
• Your preferred arrangements for who will look after any children under 18 and/or pets, if applicable;
• Who you want to be the executor(s) of the will. The executor(s) will carry out the instructions you leave in your will when you die. They can be a spouse, partner, other relative, friend or a professional such as a solicitor. You can have up to four executors and should have at least two, just in case one of your executors should die before or with you.

What to do with a will once you have made one

Once you have made a will, it is important to keep it in a safe place. Some usual options are:

• At home
• With your executor
• With your solicitor
• At a bank
• At HM Courts & Tribunals Service (HMCTS)
  
  

It is important to let the executor(s) of your will know where it is kept to avoid any confusion or delay when the time comes from them to find it. And if you update your will at any stage, you need to make sure that all earlier copies of the will are replaced with the new up to date versions.

We hope that this article will help you to consider the importance of making a will, and perhaps start the process of getting your will sorted. And remember, if you need a financial boost to get your will in place – or unfortunately sort out the financial affairs of someone who has died intestate – remember that an emergency loan from Loans 2 Go may be able to help.

Do visit us here again soon for more lifestyle and financial tips from Loans 2 Go.