FIVE MYTH-BUSTING FACTS ABOUT WILLS
https://www.telegraph.co.uk/lifestyle/cancer-charity-gifts-in-wills/myths-about-wills/
#willwriting #knowyourwill
Wills don’t have to be difficult or expensive, and can save money in the long run. David Prosser tackles common misconceptions about wills
Why don’t more Britons make a will? Surveys published in recent years have consistently found that people in the UK aren’t making any formal provisions setting out their wishes for after their deaths – more than half of adults don’t have a will in place according to some estimates.
That’s concerning – but also understandable. While a will provides you and your family with all sorts of valuable protections, a number of myths have grown up around will-making. It’s therefore important to understand why these myths aren’t accurate.
Myth 1: My loved ones will automatically get everything I own
Not necessarily. If you die without having made a will in the UK, there are binding laws to govern how your estate is distributed. If you’re lucky, your cash, property and possessions will end up with the people you’d like to receive them, but there are no guarantees.
The laws of intestacy state that in most circumstances, your estate should go to your spouse or civil partner in the event of you dying without a will. But only your estate up to the value of £322,000; beyond that threshold, your partner only gets half of what’s left, with the rest potentially going to children, grandchildren or other relatives. There’s a strict pecking order governing who gets what if you’re not married, or don’t have children and so on. Plus, divorce and separations can complicate matters.
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Myth 2: I only need a will if I’m rich
This isn’t right either – everyone should make a will, no matter how valuable their estate. For one thing, a will can be used to do more than just distribute your possessions. You can also use it to set out your wishes about your funeral, for example, or even to make arrangements for your pets.
Also, leaving a will makes life much easier for your loved ones. When you die, there is a lot of administration for your family and friends to deal with – just at a time when they’re coping with their grief – but your will can help them get past much of this red tape. A will can also help your family avoid any arguments about how to handle your affairs.
Myth 3: Writing a will is difficult and expensive
It doesn’t have to be. In theory, all you have to do is scribble down your wishes on a piece of scrap paper; if you get it witnessed, signed and dated by two independent adults, the document will be legally binding.
In practice, it’s a good idea to get a will written more formally, so that it’s worded and structured in the right way. Take a Free short online course, making sure your loved ones are taken care of, leaving a percentage of your estate to Macmillan would be hugely appreciated.
Myth 4: I don’t need to worry about inheritance tax
One important reason to write a will is to help your family plan ahead for an inheritance tax liability. But many people assume they’re not wealthy enough for this tax, charged at 40 per cent, to be a problem for them.
In fact, a growing number of families are caught in the inheritance tax net, largely because of rising house prices. Your heirs potentially start paying this tax on estates worth from £325,000, or £500,000 if including the value of your home. The inheritance tax threshold has been repeatedly frozen, so the net keeps getting wider. However, it’s worth knowing that charitable gifts are exempt from inheritance tax.
Myth 5: I can leave only specific gifts to recipients
Not at all. One good option is to make provisions in your will for “residuary gifts” – these are gifts made from the remainder of your estate once all debts, expenses and specific gifts have been made.
Residuary gifts are a good way to plan for the impact of inflation, because you’re leaving a proportion of your estate, rather than a fixed cash sum; the value of the latter will be eroded by inflation from the moment your will is signed.
Residuary gifts can also be split. You could, for example, provide for five per cent of whatever is left of your estate to go to your favourite charity.
What’s your legacy?
Leaving a gift in your will could make a big difference to people going through a life-changing experience. Take a Free short online course
https://www.telegraph.co.uk/lifestyle/cancer-charity-gifts-in-wills/myths-about-wills/
