7 things to avoid with your Will

Will Non-exhaustively!

  1. Putting it off. People hate doing it and making a will usually enters our consciousness at a moment of existential horror. It goes against all of our hopes an instincts. If it’s on your radar, and you’ve some momentum, guard it jealously and keep going!

 

  1. ‘Sideways disinheritance’ is all too common. Mr A and Mrs A are married and have one child ‘Sophie’. Mr A and Mrs A are responsible parents and create mirror wills leaving everything to each other and then to Sophie. Mrs A dies suddenly. Mr A eventually re-marries a lady who has two children from a previous relationship. Sadly, Mr A passes away soon after remarriage, without making a new will. Marriage having revoked Mr A’s will, his entire estate passes to his new wife and Sophie is left with nothing. There is no malintent on the part of Mr A only poor luck. This situation could have been avoided with proper drafting of his original document.

 

  1. Putting gifts together in the wrong order. Possibly the most common structural problem we see with DIY wills. There is a hierarchy by which gifts are distributed. If you want to leave your house to someone, so that they can actually live in it, you need to make sure the £5,000 gift you’ve left to the dogs’ home doesn’t trigger its forced sale by executors!

 

  1. Loss of property to care fees. Local authorities are more or less destitute. Delineation of social and health-based care needs is arbitrary and political. A properly drafted will can be used to protect gifts by your will from attack by cash strapped local authorities, should someone therein need late life care. 

 

  1. Losing your Residents Nil Rate Band (RNRB). Apologies for jargon, RNRB describes £175-£350k of inheritance tax exemption, losing it can cost your beneficiaries up to £140k. You only receive this exemption to the extent an appropriately valued property is left to descendants. Failure to achieve this can occur accidentally e.g. through poorly organised gifts e.g. see ‘3’ or a misworded trust. 

 

  1. Losing your ‘transferable nil rate band’. This describes the inheritance tax relief that passes between spouses. The risk of its loss speaks to a wider point about inheritance tax exemptions, they are not automatically applied. Clear paper trails must be established for each of a couple’s deaths and exemptions applied for by executors. 

 

  1. Gifting to pets.  Not in England or Wales, in any case. You can’t give to a pet in your will. A pet is a piece of property here (unlike Singapore, where gifting to animals supports an entire area of niche tax law!)

 

If you’re considering these issues, I urge you to act now, speak to our client advice team on 0121 202 4714 or click here and we’ll call you