No one wants to think about what might happen to their dependants after they die, which is why so many of us put off making a will.
A badly worded will could lead to relatives being saddled with massive legal fees
It is National Write a Will week this week, and 30 million people in Britain don't have a will – about 70 per cent of the population – according to unbiased.co.uk, the financial advisers' website.
Even if your affairs are simple, you do need to spell out what you want to happen to your assets. "If you die without, you leave your dependants at the mercy of the intestacy rules," warns William Marriott, of solicitor Meadows Fraser. "The rules don't always work the way you would expect them to."
As well as making life easier for your dependants, making a will can help reduce the tax payable.
So what should you put in a will and what will happen if you don't have one?
IF I DIE INTESTATE, WHAT WILL HAPPEN TO WHAT I OWN?
If you die intestate, which means without making a will, your assets will be distributed according to the law, and not according to your wishes. Jill Dando and Stieg Larsson, the author of The Girl with the Dragon Tattoo, are among those who have died without leaving a will and whose estates were inherited by their fathers, not their partners.
In England and Wales, if you are married with children, you might assume that all of your assets would go to your spouse. However, if your estate is worth more than £250,000, your partner will only get the first £250,000. They will get a life interest in half of the remaining estate, which means they can't get rid of it or spend it, but they are entitled to the interest.
The remainder will go to the children. If your assets are worth less than £250,000, your children will get nothing.
If you are not married or in a civil partnership, your partner won't inherit under the intestacy rules. Similarly, if you have separated but not divorced, your ex-partner will inherit the first £250,000 of your estate.
If you are childless and single, various family members could take varying shares of your estate. If no one claims it, the Government will take the lot.
THAT'S NOT GREAT. HOW DO I GO ABOUT GETTING A WILL?
You can make your own will, as long as you get it witnessed and have all of the formal requirements within it. If your circumstances are fairly simple, you could consider using a will-writing kit, which is available from stationers. However, a will that is badly worded could lead to relatives being saddled with massive legal fees.
It is possible to use online services where your will would be checked by a professional. For a full will, which will help your family to avoid tax and trauma after you die, it's best to talk to a solicitor. Using a firm regulated by the Law Society (www.lawsociety.org.uk) will mean that you deal with a qualified person, and also that you have some consumer protection.
Will-writers, on the other hand, are cheaper, but not regulated.
WHAT ISSUES SHOULD I CONSIDER WHEN I MAKE A WILL?
Do everything you can to make sure that your wishes are not contested. Make sure you do not ask any of the beneficiaries of your will to help draft it. Older people may ask grown-up children to help them write a will, but this means the will could be challenged by other potential beneficiaries. Make sure your will is properly signed and witnessed by two people who are not beneficiaries.
You will need to decide who your executors are. These are the people who will administer your will. You can pay for a bank or solicitor to do this, or a friend can offer to do it for free. If you have young children, you will need to appoint guardians to look after them if you were to die.
WHAT ABOUT TAX PLANNING?
Inheritance tax is 40 per cent, but it is known as the "voluntary tax" because it is relatively easy to get out of paying it with proper planning. Anyone who dies with total assets of more than £325,000 could leave their family with a tax liability. But if you leave your assets to your spouse or civil partner, no tax is payable. If you want to avoid tax and leave money to your children, seek legal advice about setting up a discretionary trust.
HOW MUCH SHOULD IT COST?
To save money, check if your employer, union or home insurer offers a free or discounted solicitor will-writing service. More Than insurance's £20 legal "add-on" to its home insurance policy offers a service where they will check a will for you. If you are on a low income, aged over 70, disabled, or you have a disabled child, www.communitylegaladvice.org.uk may be able to help you.
November is Will Aid month, when more than 1,000 solicitors will draft wills in exchange for a charitable donation. Expect to pay a voluntary £75 per single person and £110 per couple. Visit www.willaid.org.uk.
WHERE DO I KEEP MY WILL?
If a solicitor has made the will, they will usually store it, or you can pay an annual charge to have it stored at a bank. You can keep it yourself, but this is not the safest option.
HOW OFTEN SHOULD I REVIEW IT?
If you get married, divorced or have a child, make sure your will reflects this. Ensure that it is properly changed – either with an official change called a codicil if the change is minor, or by making a new will. Either way, make sure the changes are witnessed.
http://www.telegraph.co.uk/finance/personalfinance/consumertips/8087048/Write-your-will-before-its-too-late.html
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