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Reviewing your Will

Having made a Will it is important that it is kept under review and amended should there be any changes in your personal or financial circumstances. It should also be reviewed if there have been any changes to the law which may have an effect on the distribution or taxation of your estate.

If you have already made a Will, equityCare Legal Services offers a Free Will Review Service, regardless of where the Will was made, without obligation and in complete confidence, to ensure that it is valid and reflects your current wishes and circumstances.

Reviewing your Will also gives you the opportunity of ensuring that other issues relating to your estate planning are in place, for example, making a Lasting Power of Attorney and Financial Planning.

An invalid Will can be equally as damaging as dying without making a Will:

• If you are married or in a civil partnership, your spouse or partner may not inherit all your property and personal possessions.
• If you are co-habiting with someone, they may not receive anything at all.
• If you have children, the courts may decide their future arrangements and who will look after them. In certain cases they may come under the care of the local authority social services.
• Failing to set out clearly how your estate is to be distributed may result in family and legal disputes after your death.
• If you fail to appoint responsible executors, there is a risk that your estate will be negligently administered and the beneficiaries may not receive their full entitlement.
• Your funeral arrangements may not be undertaken as you had wished.

Once you have made a Will it is important that it is kept up-to-date. You should review your Will at least every three years or after any major change in your life. Listed below are a few examples when you need to consider reviewing your current Will:

Marriage or Civil Partnership

Marriage and civil partnership invalidates all Wills made before the date of marriage or civil partnership unless it is expressly stated in the Will that the intended marriage or civil partnership shall not revoke (cancel) it.

Divorce

Divorce or terminating a Civil Partnership does not invalidate a Will. However, on pronouncement of the final order, bringing the marriage or civil partnership to an end, any appointment of the former spouse or civil partner as an Executor or Trustee is treated as omitted from the Will and all gifts to the former spouse or civil partner have no effect.

Separation

Separation from a spouse or civil partner without a divorce or annulment has no effect on the spouse or civil partner’s rights to take a share of your estate no matter how long the separation has lasted.

Cohabitation

If you are cohabiting with someone, your partner is not normally entitled to anything unless they are specifically mentioned in your Will. Failing this, your partner may be able to make a claim against your estate under the Inheritance (Provision for Family and Dependants Act 1975), which may prove to be complicated and expensive.

Births and Deaths

The birth or death of a beneficiary may alter how the estate is to be distributed and may result in beneficiaries you had not intended benefiting sharing in the estate with others being excluded. The death of a nominated executor or guardian may also require a replacement being appointed.

Increase in Wealth

Increase or sudden wealth through receiving an inheritance, selling a business, a compensation award or a prize win are all occasions when you should review your Will, to ensure that the wealth passes to the appropriate beneficiaries, and that you maximise the Inheritance tax reliefs that are available to you during your lifetime and on your estate at death.

Illness and Long Term Care

One of the most important occasions to review your Will is when your health is failing or there is the possibility of you having to move into a care home. The law relating to the funding of long term care is complex, however, one thing is sure – it is exceedingly expensive with the average cost of nursing care being £664 per week (£34,528 a year) and residential care £464 per week (£24,128 a year). Your Will may be used to protect the family home and savings.

Purchasing Property

Buying or selling your home is probably one of the biggest financial decisions you will ever make so it is worth taking time to consider what is to happen to your interest in the property should you die. This is particularly important if you are buying the property with a friend, partner or spouse.

There will be a number of important matters to address:

• Do you want the joint owner to inherit the property on your death?
• Do you wish to make provision for your children or step-children?
• What is to happen to your interest in the property if your partner or spouse remarries or cohabits with someone?
• If you are elderly and purchasing a property do you want to prevent your interest being taken into account in a financial assessment if your spouse or partner is admitted into care after your death?

In Business

Starting your own business or becoming a shareholding director or partner in a business will require consideration as to how your interest is to be evaluated, maintained and disposed of on your death. If procedures are not put in place, your death may result in the business failing and no value passing to your estate.

In addition to ensuring that the legal formalities are in place, it is important that advice is sought from an experienced Independent Financial Adviser on the use of financial based products, possibly written in trust, to protect the business and the estate of the deceased.

Selling a business or retiring are occasions when your Will should be reviewed to simplify the content and plan your estate to mitigate Inheritance Tax.

For more information on reviewing your Will, please call equityCare Legal Services direct on 01594 838940 or take a few minutes to complete our enquiry / request callback form and we will contact you as soon as possible.