When faced with an economic downturn the last thing on most people’s minds is making or amending their Will. However, planning for your family’s future is just as important in the bad times as in the good times. The President of the Law Society, Paul Marsh, recently said, “With homes losing value, people may need to look again at their Wills, especially if they have included tax planning provisions that are no longer appropriate”.
In recent years we have seen significant increases in house prices with many people becoming concerned about the possibility of paying inheritance tax. Many saw a dramatic rise in the value of their estate and drew up their Wills accordingly.
Now that house prices and the value of shares have fallen sharply your existing Will may not reflect your current financial situation. Even more importantly your Will may no longer reflect your intentions because those receiving legacies will receive more than the ‘main’ beneficiaries because it was drawn up in a financial boom period. The value of any legacies should be reviewed to ensure that your estate has sufficient funds to pay both the legacies and distribute assets to the ‘main’ beneficiaries.
As well as a change in your financial situation, there are other occasions when it is extremely important to review your Will. These include changes in your family situation such as a marriage, which automatically cancels a Will; divorce or dissolution of a civil partnership; or the birth of a child. If you have a new addition to your family your Will should contain the appointment of legal guardians for any children under the age of 18.
In the event that you die without a Will your estate would be governed by the laws of intestacy. These may result in your estate passing to persons whom you would not wish to benefit. Many people mistakenly believe that all of their estate will automatically pass to their surviving spouse or civil partner but this is not always the case. Intestate estates can often be time consuming and costly to administer.
It is now more important than ever to ensure you have an up to date Will. Most Wills are relatively straightforward to prepare and having the right documentation in place now can save you and your family worry and unnecessary costs in the future.
For further information please contact Rebecca Fisher on
Email:rebecca.fisher@morrlaw.comPhone: 020 8971 1037
