After our piece on writing about a Lasting Power of Attorney last month, we turn our attention to wills, and offer you a chance to think about when was the last time you reviewed your own?
As Financial Advisers, we work closely with you to ensure that you gain the most out of your wealth. In doing so, we also ensure that there is a plan in place for what happens when the time comes to pass on your wealth. That includes helping you to make, update, and regularly review your will.
Have you made a will? And if so—when did you last check it?
The truth is it’s easy to put off the decisions needed to make a will. We all think we have more time, but life is unpredictable. Making or updating your will ensures you can control your wealth, looking after your family and those you care about.
Why a Will Matters
A will is more than a legal document; it’s your wishes when you’re no longer here. It ensures:
- Your wishes are respected. You can decide who inherits your home, who looks after your children or pets and how you wish your wealth to be distributed.
- Your loved ones are protected. You save your family and close friends the burden of unnecessary stress, delays or potential disputes.
- Your estate is managed efficiently. A will can keep your wealth free from unnecessary tax burdens and/or administrative costs.
The rules of intestacy
Without a will, your estate may be subject to intestacy, which may not reflect your wishes. It can mean that partners, stepchildren, or close friends may receive nothing while any previous spouses could gain a share of your wealth.
Remember your taxes
The main concern when considering your will is inheritance tax, which is charged at 40% on any excess over the nil-rate band (currently £325,000 for individuals, and up to £650,000 for married couples). However, you can reduce this to 36% if 10% or more of the estate is left to charity. Many people choose charities close to their heart, and it’s important to review which charities are chosen in your will, especially if your circumstances change.
You can also reduce your inheritance tax by a further £175,000 if you’re passing your estate on to direct descendants using the main residence nil-rate band. However, if your estate is valued over £2 million, the main residence nil-rate band tapers off by £1 for every £2 over this threshold. The main residence nil-rate band is transferrable between spouses.
Note: both the nil-rate band and residence nil-rate band are frozen until April 2028.
Could your will be revoked?
It’s important that your set your will up correctly, for example ensuring you have non-biased people as witnesses to you signing the will, and that you watch them sign it afterwards. If there are errors in setting the will up, it could be revoked. Physical destruction and creating a new will can also revoke your will, as can a written statement declaring that you revoke your will.
The Wills Act 2025
- Marriage or civil partnership currently revokes a will, unless the will explicitly states otherwise. However, under the proposed reforms in the Wills Act 2025, if this marriage or civil partnership is dissolved, there may be a way to reinstate the previous, pre-ceremony will.
- The other evolution suggested in the Wills Act 2025 is that electronic wills and remote witnessing may be introduced to make will-making more accessible.
Scotland: A Different Legal Landscape
- In Scotland, marriage does not revoke a will. This means your old will remains valid unless you update it.
- Scottish law also provides legal rights to spouses and children, regardless of what the will says. These rights can override your wishes if not planned for properly.
- The intestacy rules also differ; cohabiting partners have no automatic right to inherit unless a court grants it.
Think of your family
After working so hard to ensure your wealth works for you, you deserve to make sure your legacy plays out how you want it to. Consider your answers to the following questions:
- Do you have a will in place?
- If you have a will, have you reviewed it within the last year?
- Have any major life events or major asset purchases or sales happened in the past few years?
- Are you certain your children, or grandchildren, will be looked after by the right people if you’re no longer able to do so yourself?
If you need to make a will, haven’t reviewed your will in the last year, have recently experienced any major life or wealth changes, or want to ensure your family are looked after in the future, your Courtiers Financial Adviser can help you plan your legacy.
