Stevens - Wills

Wills

Why should I make a Will?

You may think making a Will is a waste of time and that your estate will all go to your family in any event. Think again! The laws of intestacy do not provide a complete answer and in this day and age, family relationships and obligations become ever more complicated. Whether your circumstances are simple or more complicated, there are some powerful reasons why it is best to make a Will rather than leaving the situation to chance. Here are some of them:

to make sure your property and assets are inherited by those you wish
to ensure your family and those you care for are looked after
to make proper provision for your partner (married, cohabiting, or for a partner of the same sex)
to consider the effect on all your family if you have re-married and either you or your spouse have step-children or step-grandchildren or if there are other family members for whom you wish to provide
to make provision for a dependant ex-spouse or other dependant
to avoid claims under the Inheritance (Family and Dependants) Act
to appoint guardians and to make special provision for your children
to ensure your estate is administered by the person(s) of your choice
to consider the inheritance tax effects and to minimise liability to pay tax
to make provision for your business
to express funeral wishes
to make charitable bequests and to help others

Information we need

Making a Will is not just a simple question of who you would like to leave your money to! Everyone's circumstances are different, but here are some of the questions we may need to ask you:

What is the value of your estate, and what does it consist of?

If you would like advice regarding Inheritance Tax (including ways in which your future liability could be reduced) it is helpful if you have an idea of the nature and value of your estate.

Who would you like to appoint as Executors/Trustees?

Your Executors are the people who will be responsible for administering your estate after your death. You can appoint a sole Executor, or as many as four. It is common for Executors to double up as Trustees, and oversee any trust funds created on behalf of minor beneficiaries, but you can have separate Trustees if you would prefer.

If you have children under the age of 18, who would you like to appoint as their guardian?

You can appoint as many guardians as you would like, and state which one of them you would like your child to live with. You can also use your Will as a means of expressing your wishes regarding other aspects of your child's upbringing. If you are unmarried, separated or divorced, you will need further advice on this and we shall be happy to discuss it with you.

Would you like to make any gifts of specific items?

Many of us have items of sentimental or monetary value - such as pieces of jewellery or photographs - which we would like to leave to the people we think will appreciate them most. If you do not make any specific gifts, all your belongings will fall into your residuary estate and may not end up passing to the person you would wish.

Would you like to make any pecuniary gifts?

These are gifts of money made to specific people or classes of people. If you wish, the gift can be made subject to a condition, e.g. '...to my friend Lizzie the sum of £3,000.00 providing she looks after my beloved dog Rex'.

Would you like to make any charitable gifts?

People often like to leave something to their favourite charities. Since all gifts to charity are exempt from Inheritance Tax this is a good way of saving tax as well as helping worthwhile causes.

Who would you like to leave your residuary estate to?

Your residuary estate is everything that is left after all tax, debts and specific legacies have been paid out. You can appoint as few or any many residuary beneficiaries as you would like, individually or by class, to inherit either equal or unequal shares.

At what age would you like any minor beneficiaries (children) to inherit?

Until minor beneficiaries reach the age you have specified , your Trustees will hold their share of your estate. 18, 21 and 25 years are popular choices.

What degree of power or control would you want your Trustees to have?

Your Trustees powers are limited by law, and may be seen by some to be too estrictive. You can make provision in your Will for their powers to be extended, which may make their job easier, and make it easier to provide for minor beneficiaries.

Who would you like to inherit if one of your beneficiaries dies before you do?

If you make a gift to a child or other issue (i.e. to a grandchild or great-grandchild) and if that person dies before you do, the law states that their issue (i.e. their children, grandchildren or great-grandchildren) will receive that person's share in substitution, unless a contrary intention appears in your will.If there are no issue, then the share of the beneficiary who has died will be shared equally between any other residuary beneficiaries. You should however note that this only applies where the deceased beneficiary is a your child or remoter descendant. If you have made gifts to a parent and a child who are unrelated to you and if the parent dies before you, that person's gift will lapse and be divided between the residuary beneficiaries. The best thing to do to avoid all these pitfalls, is to make clear your wishes in your will.

Have you already made a Will?

If you have an existing Will which you wish to revise, we would strongly recommend that the original Will is destroyed as soon as the new one is executed. This will help avoid confusion at a later date.

Are there any other family members for whom you have not make provision?

It is possible that your Will could be contested by people for whom you have not made provision, such as a former spouse or child. We will be happy to advise on their chances of success, where appropriate.

Laws of Intestacy

Surviving Relatives	Entitlement
Surviving Spouse No issue No close relatives	All to spouse
Surviving spouse and Surviving issue	Spouse takes: Personal chattels First Ł125,000 Life interest in half the remainder Issue take: Remaining half at 18 years Balance on death of spouse
No spouse but Surviving issue	Children take: Whole estate at 18 years If any have predeceased, their issue take their share
Surviving spouse No issue Other close surviving relatives	Spouse takes: Personal chattels First Ł200,000 Half the remainder absolutely Close relatives take remaining half in order of priority*
No Surviving Spouse No issue Close Surviving Relatives	Close relatives take entire estate in order of priority*
No surviving spouse No issue No close relatives	Whole estate passes to remoter relatives in order of priority*
	*Order of Priority: Close Relatives Parents Brothers and sisters of the full blood or their issue Remoter Relatives Brothers and sisters of the half blood and their issue Grandparents Uncles and aunts of the full blood and their issue Uncles and aunts of the half blood and their issue

In absence of any relatives, the entire estate would pass to the Crown, the Duchy of Lancaster, or the Duchy of Cornwall.

Inheritance Tax

From 6th April 2007 no tax is payable on estates up to £300,000. Estates over £300,000 attract tax at 40%. The nil rate band usually changes each year. For the year 2008 to 2009 the exempt figure will be £312,000; for 2009 to 2010 the exempt figure will be £325,000; and for 2010 to 2011 the exempt figure will be £350,000.

Where assets have been given away within 7 years of the death those assets are added back into the estate. The amount of tax is reduced depending on the number of years which have passed between the gift and the date of death. 100% of the tax chargeable will apply for the first, second and third years following the gift. 80% of the tax chargeable will be payable in the 4th year; 60% in the 5th year; 40% in the 6th year; and 20% in the 7th year. It is possible to take out an assurance policy to cover this tax which is a point to consider when planning your estate.

You should also consider the £3,000 annual exemption and the exemption for gifts of up to £250 per annum to any number of people. Exempt gifts may also be made upon marriage of £5,000 by a parent; £2,500 by a grandparent or by the bride or groom; and £1,000 by anyone else. Regular payments made out of annual income are also free of inheritance tax provided they do not reduce your standard of living.

Estate planning can be complex and the advice of a lawyer and possibly also of an accountant should always be considered if there is any risk your estate will be anywhere near the IHT limit.

Costs of making a Will

Please see the section on fees click here for details of our charges for making a Will.

There is a fixed fee for simple wills while for more complex wills we charge at hourly rates. By more complex wills we mean those which involve inheritance tax planning, trusts for the disabled, discretionary trusts, business assets and (in some cases) second families. More complicated wills, particularly those involving inheritance tax planning, require careful thought but they can usually completed within 2 to 4 hours. In all cases there is a modest additional charge for home and hospital visits depending on the distance from our offices.

Frequently Asked Questions and Answers

I don't really own anything except my house ...

People often forget they also own life assurance policies, savings, building society accounts and perhaps some shares. However, a Will is not just about financial things, what about that treasured stamp collection? Or your pet dog and cat! A Will can also provide a valuable opportunity to explain what your wishes will be for your burial or cremation.

Surely Wills are complicated and expensive?

No, provided you receive sensible and competent legal advice.

Won't everything go to my nearest relative anyway?

Not necessarily. When a person dies without making a Will the intestacy laws apply, and for example a wife may find she has to share the value of the matrimonial home with other relatives.

I'm not married and I don't like formalities, so I don't want to bother thank you.

If you live with your partner and you are not married, it is absolutely essential that you think about what will happen when one of you dies. If you don't make a will, your partner may receive nothing at all or find himself or herself without a home. Please think again.

I am worried as to who will look after my children if I die.

You can appoint a Testamentary Guardian who will be responsible for looking after your children. If you do not live with the children's other parent, it is particularly important that you take legal advice since the appointment of the Testamentary Guardian will be affected by any existing Court Orders or Parental Responsibility Agreement relating to the children.

I know it's important to make a Will, so I'm going to buy a Will pack from my local stationers and I shall make it myself.

You can of course prepare your own Will but remember you must make sure it is signed exactly in accordance with the rules for the execution of a Will otherwise it will not be valid. Remember too that if your Will is unclear or misses something out, you won't be around to explain what you intended. You also need to remember that if you have husband or wife or dependants (including an ex-husband or wife) and you leave them out of your Will you may be risking a claim against your estate under the Inheritance (Provision for Dependants) Act.

I like to deal with everything over the Internet. I would much rather fill in a form on line and have the Will emailed to me for signature at home. Do Stevens operate this service?

There are firms of solicitors who provide this type of service but we are not comfortable with it. There are just too many possibilities to cover everything in the absence of a face to face interview and it would be all too easy to leave something out or to misunderstand or make false assumptions about your instructions. We are happy for you to email us your instructions and we can email you back with an estimate of the cost and any further queries. However, in order to finalise the terms of the Will, we really need to meet you and talk it through.

I have a Will already but I need to change it. I was thinking of writing the changes on the bottom and signing it again. Is that O.K.?

It is important to keep your Will up to date. An out of date Will could be worse than no Will at all. Minor changes can be included in a Codicil but it must be correctly executed in exactly the same way as a new Will. Often it may be better to start from scratch . In particular, you should always think about making a new Will if you get married; it you start living with someone; if you have children or become responsible for someone else's children; if you separate or divorce; or following the death of your spouse or partner.

I am happy with my Will the way it is, but I am worried that it may get lost or that my relations won't know where to find it.

We are quite happy to store your Will whether or not we have made it and we can always make enquiries both within our own wills system and with other solicitors if a missing will needs to be traced.

I read somewhere that I need to appoint Executors but I don't want to impose on anyone. What can I do?

You will need to appoint an Executor in your Will. Such a person can be a relative or a friend but it can also be one of the partners at Stevens. We make a charge for acting as Executor but it can save a lot of worry to know there will be someone competent who can look after your affairs.

Is there Legal Aid for Wills?

If you are a single parent who wishes to appoint a Testamentary Guardian, or a person over the age of 70 and if you have limited savings (up to £3,000) and you are on Income Support or Means Based Job Seekers Allowance or if you are on a very low income (subject to means test), you should be eligible for advice under the Legal Help Scheme. Stevens no longer provide this service except to those who are over 70.

I'd like to make a Will but I can't get about and I am waiting to go into hospital. Can it wait?

We really don't think you should leave it. On the contrary, if you are not feeling 100% it is only natural to be thinking about these matters. Stevens are happy to come and visit you at home or in hospital. We can make as many visits as necessary. When it comes to signing the Will we can bring members of our staff to act as witnesses so you do not need to disturb your neighbours or hospital staff.

Probate

If someone close to you dies you may have many questions. For example:

What should you do if you are appointed Executor?
What happens if someone dies without leaving a Will?
Is it really necessary to obtain a grant of Probate?
Is it possible to contest a Will?

These are the kind of issues which our Probate department can help you address. You will find that if the estate is small, it may be possible to deal with it on an informal basis under the Small Estates Procedure. We may be able to arrange this just by writing to the relevant Bank, Building Society or Insurance Company or we may need to prepare a more formal document setting out the facts known as a Statutory Declaration.

Where the estate is larger, if there is a valid Will, it will be necessary to obtain a Grant of Probate while if there is no Will, Letters of Administration will be needed. A lawyer can assist you with all the necessary formalities and can also prepare the Estate Accounts for submission to the Inland Revenue.