When a person passed away without a Will, their estate is divided in accordance with the Act of Succession in Scotland or the Inheritance Act in England. This means that your loved ones may not benefit from your estate. Leaving your loved ones without a Will can end up being a very long and complicated process, which ultimately will incur additional costs than if you had your Will in place.
We believe that everyone should have a professional, legally binding Will drawn up so that they can ensure their wishes are adhered to, giving you the peace of mind knowing that your family and loved ones will be protected once you are gone.
That's why we have put together a simple eight step guide to assist you during your Will Writing process. This guide will help you better understand the questions you may be asked and give you ample time to consider your wishes.
If at any point during your appointment, you feel unsure or change your mind - our professional and expert consultants will be able to answer any questions you may be asked and give you ample time to consider your wishes.
If at any point during your appointment, you feel unsure or change your mind - our professional and expert consultants will be able to answer any questions you may have.
Itemise and Value your Estate
Before you decide who you would like to leave what to, it is important to think about the items you own an what you may owe. By taking a note, whether that means writing down or typing up a list, of your assets and what they are worth you will be better equipped to decide the future of your estate.
The value of your estate can be calculated using the below sum:
Value of Assets - Any Outstanding Debts = Value of your Estate
When itemising your estate, you should include:
Your home and any other property you own.
Cash savings in banks and building society accounts.
Insurance policies that pay out at death.
Stock market investments, including shares, bonds and funds.
Pension funds that include lump sum payments.
Any business that you own or part-own.
Motor vehicles e.g. cars, motorbikes etc.
Valuables including jewellery, artwork, and antiques.
The contents of your home, including furniture, and personal possessions, including those of sentimental value.
You should also account for any debts. These may include:
Any outstanding balance on your mortgage.
Credit card debt.
Loans.
Equity Release Schemes.
Bank overdrafts.
2. Are you liable to pay Inheritance Tax?
Inheritance Tax is the tax which is payable on your whole estate once you pass away. If you do not make adequate plans for this it could result in a considerable tax sum being deducted from your estate.
At your appointment, we will provide you with the most suitable advice and assist you in carefully planning the future of your estate so that you are able to reduce or even eliminate the inheritance tax payable.
At the time of writing, the threshold is currently at £325,000 for a single person and £650,000 for a married person or person in a civil partnership. This means that if your estate falls below this threshold, there is no Inheritance Tax liability to be paid.
However if your estate exceeds this limit there are ways in which you can distribute your estate in order to attempt to limit your IHT liability. To receive personalised advice regarding your Inheritance Tax liabilities, you can arrange an appointment with an Independent Financial Advisors, or an Estate Planner.
3. Beneficiaries to your Estate
At your consultation with us, one of the main topics of discussion will be who you would like to leave assets of your estate to. You may choose to leave it to a spouse or partner, children or grandchildren, friends and loved ones or perhaps a charity organisation. Although there is no limit to the number of beneficiaries you can have, it is pivotal to ensure that the correct terminology is used. This helps to limit any misunderstandings and issues in the future.
If you live in Scotland, you must fulfil the Legal and Prior Rights of your spouse/partner and your children. To find out more about this, read our blog post by clicking here.
If you are leaving any assets or money to minor children or a loved one with disabilities or mental health conditions, we encourage you to write the gift into trust. This allows those assets to be managed by a person you can appoint. They can manage those assets until your beneficiaries reach a certain age, or indefinitely.
If you are considering leaving an assets to a loved one, but would like to place additional measures to ensure that the assets cannot be misused, find out how we can help you by setting up a Trust.
4. Leave a Legacy
You may choose to leave money to a charity that you hold close to your heart, this is known as leaving a legacy. At Thomas Bradley & Co, we offer a Free Will Writing service to all of our clients aged over 50. By partnering with charities across the UK, we have been able to offer this service - all we ask is that you leave a legacy to a charity.
This can be as little or as much as you'd like, and although we have a host of charity partners, you are always welcome and encouraged to leave a legacy to a charity of your choice.
Thomas Bradley & Co do not receive any compensation or renumeration from the charities we partner with, or any charities you leave a donation to.
5. Choose your Executors
An executor is the person or the persons who will be responsible for administering your Will and distributing your estate. This will be someone you trust to carry out you wishes, this can be a partner, close friend, or a professional body. The role of an executor involves a lot of responsibility.
Usually, you will assign two people to act as your executors, however you can have up to four people.
An executor will usually be someone who is close to you and therefore are likely to also be a beneficiary of your estate. There are no restrictions on this, your executors can also be beneficiaries.
6. Thomas Bradley & Co will write your Will.
At this stage, your instructions will have been taken by your Estate Planning Consultant and passed along to your Case Manager. You will receive draft documentation for review. At this stage, please be sure to check your email inbox for your drafts, unless you have specifically asked for your documents to be posted.
Once you receive your drafts, you must approve them. If you wish to make any amendments, you are required to make them in writing. At this stage, you may have questions or require updates - please be sure to contact your Case Manager, who is here to assist you throughout the process.
7. Signing your Will
Once you are happy with your documents and have given them the stamp of approval. You will need to sign your Will. A Will must be signed in the presence of two witnesses at the same time, however your witnesses cannot be beneficiaries in your Will.
Signing a Will, albeit seems like a simple task, does require a thoroughness. If signed correctly, your Will could be invalid. Read our blog post by clicking here which tells you all the do's and don'ts when it comes to signing your Will.
8. Storing your Will in a safe place.
After the signing of your Will, it is important to make sure it is stored in a safe place. It is also good to make sure that your executors are aware of where your Will is being kept to avoid issues in the future. You can keep your Will at home, or you can choose to keep it with us via our Will Storage Service which offers you other benefits such as any amendments to your Will free of charge.
Although we will always have a copy of your Will, it is essential that the original, wet ink copy is stored in a safe and secure place whether that be at home or with us!
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