Why You Should Write a Will in Your Thirties
Many young adults believe that your thirties are ‘too early’ to write Wills and think they could be tempting fate by doing so. However, if the pandemic has taught us anything, it is that it is never too early to think about how you would want things to be left, should you pass away unexpectedly. Early estate planning is crucial to ensure your assets are distributed according to your wishes.
Elizabeth Fillingham, Associate in the Wills, Trusts and Probate team, highlights the importance of making this a priority.
Who is responsible?
Not only does a Will outline how your estate is distributed, but it also allows you to nominate a chosen person or people to act in the administration of your estate as personal representatives. Under your Will, your personal representatives are known as executors and being an executor is a role which can be challenging for many reasons. Not only is this role one which can be very paperwork and administratively intensive, but also one that loved ones are faced with in the midst of navigating their grief, following the loss of a loved one.
By your thirties, you may have acquired assets such as property, savings, and investments. There may be nuanced circumstances which the preparation of a Will could help to protect or preserve in the event of your death. Whether your estate is objectively large, modest, or even nominal, the preparation of a Will is invaluable as it specifies who should deal with the practical steps involved in tidying your estate. This would include matters such as arranging payment of outstanding liabilities, arranging your funeral and dealing with other practical arrangements such as clearing your property.
Is there an alternative?
In the event of no Will being in place, the Intestacy Rules will govern the succession of your estate, together with who is entitled to deal with the administration. These rules however do not factor in romantic relationships where the people involved are not married or in a civil partnership or friendships. Therefore, often they do not reflect how an unmarried person, or one without children would want their estates to pass in the event of their death. Without a Will, partners who are unmarried or not in a civil partnership and close friends will not inherit anything, regardless of their significance in your life.
There is a common misconception within society that unmarried partners and those not in a civil partnership can have what is called a ‘common law’ marriage. It is thought this gives them the same rights as those who are married or in a civil partnership. However, this could not be further from the truth. This often can result in those assuming that their partner would automatically be entitled to a share of their estate as beneficiaries in the event of their death. However, the law in England and Wales does not automatically recognise cohabiting partners as beneficiaries. As a result, a surviving partner could potentially be left financially vulnerable in the event of their significant other dying.
What about my children?
If you have a child or children, a Will is crucial for recording who your chosen guardians would be for them, in the event of your death whilst they are under eighteen and the death of anyone else with Parental Responsibility. Your Will is your opportunity to make your wishes and feelings clear to a Family Court considering what should happen to your minor children, at a time where you are not around to articulate these wishes for yourself.
Whilst not every child or teenager is the same, many parents worry about how financially responsible their children would be if they were to receive inheritance at the age of eighteen. When we look at our toddlers playing in the sunshine, or our children learning to ride a bike, it is hard to envisage the type of adults they will be. By preparing a Will, it means you do not have to leave matters up to chance or afford your children too much financial autonomy following your death. Your Will is an opportunity to specify a higher age at which your child or children should inherit, should you wish to. You can also establish trusts to manage your children’s inheritance until they are mature enough to handle their finances responsibly.
Risk of family fallout?
More often than not, life without a loved one seems unfathomable. The thought of carrying on without them seems too much to tolerate. People often cannot imagine a situation could ever arise following the loss of a loved one where arguments would ensue concerning money. Regrettably however, this is far from uncommon.
Whilst your Will does not always afford complete protection from possible dispute or litigation, it does provide clarity concerning your wishes. This in turn can reduce the likelihood of disagreements over your estate and how it is distributed. This is particularly important when looking at different family situations, such as blended families or families with estranged relatives.
The preparation of your Will is a proactive way to outline your intentions in order to minimise the risk of legal challenges, which can be both costly and emotionally draining for those closest to you.
Can I escape Inheritance Tax?
Whilst there is no foolproof way to avoid Inheritance Tax, preparing your Will can also provide an invaluable opportunity to conduct proper estate planning. Estate planning allows you to take stock of your present circumstances and the Inheritance Tax rules in force at that time. This in turn may enable you to take steps during your lifetime which would reduce the value of your estate, should you pass away.
In England and Wales, the Nil Rate Band has been fixed at £325,000 since April 2009 and will remain at this figure until at least April 2028. If there is no other Inheritance Tax relief available, estates exceeding £325,000 are subject to a 40% tax on the value above this threshold. However, through effective Will structuring, such as leaving assets to a spouse or charity, or in some circumstances, setting up trusts – it is sometimes possible to reduce the immediate liability owed.
Does it really matter?
Ultimately, your Will is your opportunity to record your wishes in relation to your estate and do what you can to ensure your loved ones will be taken care of. Life is unpredictable, and whilst no one likes to contemplate their own mortality, preparing a Will affords you peace of mind, should the worst happen.
Writing a Will in your thirties (or really, as soon as you become an adult) is a responsible and proactive step in securing your future and protecting those you care about. Speaking with a solicitor who specialises in Wills, Trusts, and Probate ensures your Will is legally sound and tailored to your specific needs.
If you would like to discuss making a Will please get in touch with Elizabeth on 01494 738 067 or email elizabeth.fillingham@blasermills.co.uk.
