Too Good to Deny Future Generations
This will be a series of articles from Steve Pitts, Partner at Thursfields, who are Worcestershire based solicitors. Steve is passionate about the Severn Valley Railway and has joined the SVR Charitable Trust as a fundraising volunteer.
Putting your affairs in order can spare family or friends painful decisions and even financial difficulties that could happen if you don't make your wishes clear. Putting your affairs in order may also clear your mind of lots of worries, leaving you free to concentrate on the present. In this article, I am going to deal with the importance of making a Will.
A Will is one of the most important documents most people ever sign yet, surprisingly, onver two-thirds of adults die without a valid Will, causing a great deal of uncertainty at a time of heartache and distress. Making a Will ensures that whatever you have - no matter how much or how little - is divided up according to your wishes. It also safeguards the security of your loved ones and enables you to choose who handles your possessions after your death by acting as your Executor(s).
Making a Will is important because:-
If you die without a valid Will, there are certain rules which dictate how your money, property or posessions will be allocated. This may not be the way that you would have wished for them to be distributed and, if you leave no next of kin, your estate will go to the Crown. Your Executors (who take charge of your estate and wind it up) will also be chosen according to fixed rules and these may not be the most suitable to act.
To avoid these problems, it is important that you make a Will. . .
By making a Will, you can:
Providing for you loved ones is the most important thing to consider when writing a Will; however, once they have been considered, you may wish to leave a gift in your Will to support the work of the Severn Valley Railway. One way of doing this is to include a residuary legacy to the Severn Valley Railway Charitable Trust.
Types of gifts you can leave in your Will:
Inheritance tax is paid if the value of your estate exceeds the threshold set by the government - currently £325,000. Inheritance tax of 40% is paid on the amount that exceeds this threshold. So, out of every £1 over the threshold, your beneficaries will only keep 60p; 40p will go to the government. However, gifts to charities are generally exempt from Inheritance Tax. If you leave a charitable gift, it will be deducted from your estate before Inheritance Tax liability is calculated.
Assessing you estate
Before you draft your Will, you should:
Drafting your Will
It is always best to ask a legal advisor to draft your Will. he or she will know the correct form of words and can avoid ambiguities and misunderstandings. In the meantime, these three basic rules may be helpful:
It is essential that your executors know their role and where to find your Will, which should obviously be somewhere safe, for example, with your legal advisor or bank. Therefore, it is helpful if you breif your executors about this and also provide them with key contacts in respect of your bank account, insurance, investments, etc.
> Part Two
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