Having a Will in place gives most people great peace of mind. However, it's important to review your Will from time to time to ensure that it continues to meet your current wishes and legal requirements.
Life changes, and so do circumstances. As life unfolds, you may decide to distribute your estate differently or appoint someone else as your executor or guardian for your children if their circumstances have changed.
It is generally recommended that you review your Will at least once every five years, as well as in the event of certain life events, including the following:
For most people, property is their biggest asset. When buying a property, it's wise to decide what you want to happen to it in the future. This decision also affects how you buy a jointly owned property. For instance, if you own it with someone as joint tenants, it will automatically pass to them if something happens to you. However, if you own it as tenants in common, you can leave your share to someone else in your Will.
You can also grant the other owner a life interest in the property, allowing them to live there as long as they wish, after which your share will pass to your chosen beneficiary.
- Entering marriage or a civil partnership
When you marry or enter a civil partnership, your existing Will automatically becomes invalid unless it specifically states that it is being written in contemplation of the marriage or civil partnership. Without a new Will in place, your estate would be subject to distribution according to the Rules of Intestacy.
Many people choose to review their Will upon the birth of their child to ensure that the child will be provided for in the future if the worst should happen. Your Will offers the opportunity to designate a guardian of your choice for your child. Failing to appoint a legal guardian would leave the decision of your child's care to the discretion of the court in the event of any unforeseen circumstances involving you and the other parent.
- The death of someone named in your Will
If someone appointed in your Will as an executor, trustee, or guardian passes away, it's important to reassess whether you need to designate a replacement. This is crucial if your Will does not specify anyone as a reserve appointee.
If a beneficiary named in your Will dies, you might consider drafting a new Will to establish alternative arrangements for the gift they were intended to receive.
- Getting divorced or dissolving a civil partnership
In the event of divorce or the dissolution of a civil partnership, any provisions made for your former spouse or partner in your Will are no longer valid. As a result, part or all of your estate may become intestate, meaning it lacks a designated heir and would be distributed according to the Rules of Intestacy.
- Changes in your financial situation
A significant alteration in your financial situation may necessitate revising your Will to ensure that your intended beneficiaries continue to be adequately provided for. Your estate typically disburses specified gifts first, such as '£5,000 to X', before distributing the remaining residue. This means if the value of your estate decreases, your residuary beneficiaries may receive less than those receiving specific gifts.
From time to time, laws regarding matters like Inheritance Tax and the allowable amount for tax-free gifts may change. It could be beneficial to reassess your Will considering these changes to ensure that your estate is structured in the most tax-efficient manner.
For further advice, please contact your usual Moore adviser.