What is a will?
A will is a legal document that determines what will happen to your estate – money and anything else you own – when you die.
Mostly, wills are used to:
- choose how your estate will be shared out
- set up trusts
- give special gifts, like particular belongings
- appoint guardians for your children
- set out funeral arrangements
When your new baby is born, you may want to consider making a will.
When should you start thinking about your will?
Though some people find wills unsettling, making one can be an important part of the happiest occasions in life. You can make or update a will at any time, and you may want to considering doing this when any of these things
happen to you.
- When you’re in a happy relationship
Obviously you can find yourself in a happy, lifelong relationship without being married – and if you are, making a will is an important, meaningful step. Because you’re not legally a couple, your will is the only way to be sure you can provide for your partner. Equally, if things change for the worst in the relationship, you may want to consider reviewing and updating your will.
- When you get married, or have a civil partnership
It’s sensible to look over your finances as you plan your life together, and making a will should be part of that process.
- When you have a child
As soon as your new baby is born, you really should consider making a will. If you should die, your children would depend on you to provide for their future. It isn’t just about money either – your will should also specify who will be your children’s guardians if both parents die, so they’ll be looked after by the people you choose.
- When you become wealthy
If you’re celebrating newfound wealth, congratulations! Now it’s time to make a will. New assets can change the way inheritance tax applies to you, so it’s definitely worth making your will, or updating an existing one.
What happens if you don’t have a will?
A will gives you peace of mind, knowing that if the worst should happen unexpectedly, your wishes will be carried out. You can provide for your loved ones and give people the special gifts they’ll value.
To understand the importance of this, it can be useful to know what would happen if you died without making a will. This is called “dying intestate” and it can cause a lot of heartache at a difficult time. Here are some of the problems.
- Dealing with the estate can take a very long time – it might be months or even years before your loved ones can access the assets.
- There’s no choice about who gets what. If you’re married, your estate will usually go to your current spouse. If it’s above a certain amount, your children will get something too, but your godchildren and friends will get nothing.
- If you’re not married or in a civil partnership with your partner, they won’t usually get anything when you die. Instead, your assets will usually to go to children, other relatives – or to a spouse or civil partner if you have one.
- If you promise special gifts or presents to people, there’s no guarantee that they’ll get them.
- The state will appoint guardians for any underage children – and these may not be the people you would choose.
When do you need to update your will?
You should consider updating your will whenever your circumstances change. This might be when:
- you have another child
- you get divorced or remarry
- there is a death in the family
- your estate changes in value (for example, if you inherit a property or lose money in a business venture)
- your children turn 18
You should also review your will every 5 years to make sure everything is up to date.
