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I don’t need a Will – the misconceptions

Often, I speak with clients who think that they do not need a Will. Some of the reasons for this are as follows:

1. “I am too young” – To make a Will you need to be over the age of 18. At this age, your mortality is not typically at the forefront of your mind, especially if you are in a relatively low risk profession. As difficult as it is to think about death, life is unpredictable and by looking at your Will early, you are not only being responsible for yourself but also making provision for the ones you love.
2. “I don’t have a large estate” -There is no question that if you have a substantial estate, you need a Will and probably some efficient Inheritance Tax Planning. However, not only do people often underestimate the full value of their estate, but even if you do not consider yourself to be ‘wealthy’, there are other important reasons for making a Will. These include:

• personal possessions – these may have sentimental value, rather than monetary value and a Will allows you to ensure that specific people receive items of your choosing;
• if you have minor children, guardianship is not automatic on your death and is a matter for the court, who may not select guardians that you would have chosen; and
• you may have concerns about particular family members inheriting from your estate. For example, your Will allows you to specify an age for your children to inherit, rather than the default of 18.  You could also include a trust within your Will, if the familial or financial circumstances of a beneficiary concern you.

3. “Everything will go to my family anyway” – If you die without a Will in place, the rules of intestacy will dictate who deals with and inherits your estate. The rules may not follow your wishes and could cause your loved ones unnecessary stress during an already difficult period of grief. You may have close relatives that are entitled to a share of your estate but have unfortunately been distant in your life for some time. By not doing any estate planning, you may end up inadvertently worsening a family member’s inheritance tax position if they benefit under the intestacy rules.

Lasting Powers of Attorney – why do I need them?

Lasting Powers of Attorney (LPAs) allow you to decide who you trust to make decisions in relation to your health, welfare, property and finances in the event that you become unable to. Many people will think their risk of losing mental capacity is low but mental capacity can be lost in many ways e.g. dementia, other mental health conditions or via an accident. By the time you need an LPA, it is often too late to make one, which can result in your family going through a long and expensive process to gain access to your finances and make decisions on your behalf. Again, life is unpredictable and whilst we hope you will never need to rely on your LPAs, without them there is no certainty as to who may apply and be appointed to make decisions on your behalf.