10 Interesting Facts About Wills You May Not Know
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A will is an important document and one that should be taken very seriously. It is your last will and testament and ensures that your wishes are carried out, and that your loved ones are taken care of, after you have gone. We take a look at 10 interesting facts about wills and answer some of your questions while dispelling any myths and misconceptions.
APPROX. 54% OF ADULTS DO NOT HAVE A WILL
In the first of our facts about wills, we take a look at just how many people don’t have a will and why. For the most part it is because death is not something we want to think about. For many, the thought of their own mortality is something they want to avoid. This is why many adults actually do not have a will – the figure is a staggering 54%. It is however, something that all adults should consider as its important to have plans in place should the unthinkable happen.
A WILL DOES NOT GIVE POWER OF ATTORNEY
While a will can express your wishes for after you are gone, it cannot act as a document to appoint someone to make decisions for you if you are unable to. As it a document that comes into effect after your death, you will need a Lasting Power of Attorney to give someone the authority to make decisions for you while you are alive.
YOU CANNOT LEAVE YOUR ESTATE TO THE CAT!
You may have heard people joke that they are going to leave everything to their cat. Some people are actually quite serious when they say this. For many, their pets are their most valuable companion and they love them more than anyone else. Unfortunately though, you cannot leave your estate to your dog or cat. They are not human beings so they cannot own property or money. You can however, make provisions to take care of your pets after you are gone with specific instructions.
WHEN YOU DIE – YOUR DEBTS DON’T
It’s a common misconception that when a person dies their debts will die with them however, this is not the case. Any debts must be settled from the estate of the deceased. Once debts have been paid, then the remainder of the estate can be distributed as per the instructions in the will. If there are not enough assets to settle the debts, the estate can be declare insolvent or bankrupt.
CHARITY DONATIONS
Any money you bequeath to a charity is tax-free. If you decide to make a donation from your estate to a UK charity, not only is that donation tax-free, it also reduces the amount of inheritance tax that your estate has to pay. Giving at least 10% of your estate to charity, actually reduces the tax on the remaining estate form 40% to 36%.
YOU DON’T NEED TO BE 18
While most people need to be 18 to make a will, this doesn’t apply to serving soldiers on active duty or sailors at sea.
YOUR SPOUSE WILL AUTOMATICALLY RECEIVE EVERYTHING
This is another misconception. Most people believe that if you don’t have a will, your spouse will receive everything when you pass away. In reality, if you have children, your spouse usually inherits £250,000 of your financial assets, jointly held assets and an interest in the remaining estate. If there are no children, they will receive £450k – the rest is then halved between the spouse and the rest of the family.
YOU CAN APPOINT A GUARDIAN FOR YOUR CHILDREN
This is extremely important and something you must consider. If both parents pass away without an unappointed guardian, social services may intervene to decide who should care for the children. If you have absolute wishes for who should care for your children, you should name them in their will. Of course, you will need to get their agreement.
IF YOU DIVORCE/REMARRY, YOU NEED A NEW WILL
It is important, if you already have a will, to make sure it is changed in accordance with your wishes following a divorce or break up of a relationship. This is to avoid your estate going to the wrong party.
NO BLOOD RELATIVES
If you are the sole surviving member of your family and you have no living blood relatives, your estate may pass to the government after your death. To avoid this, it is important to make a will to leave your estate to charities or other beneficiaries.
