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Orange County attorney article review: Failure to create a will can put the state responsible to distribute valuable assets. It is easy to see how important it is to have a will so that your wishes are documented.
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Wills
Taking Control: Safeguarding the
Distribution of Your Assets by Making A Will
by Miss Janine Byrne
The Importance of
Making a Will
A valid will is one of the most important documents you could ever put your
signature to, as the consequences of failing to make a will before you die can
have far-reaching effects on the people you care about most.
Despite the importance of this legal document, it is still the case that only 3
out of every 10 people make a will mainly due to lack of awareness as to why a
Will is needed.
The 3 most important reasons why a Will should be made are;
1. Simplifying Administration Process
2. Intestacy & Distribution of Assets
3. Inheritance Tax
1. Simplifying the Administration Process
Before a deceased person's estate can be distributed to various individuals a
grant of representation needs to be obtained from the
Probate office. All assets
which comprise the estate -including money in bank accounts - are frozen until
this grant is confirmed. Where no will has been made the process of applying for
the grant is drawn out, causing aggravated upset and anxiety for relatives and
possibly acrimonious disputes and legal costs over who should deal with the
estate.
A valid Will resolves these problems as persons will already have been appointed
by the Will - executors - to deal with the estate and can obtain the grant and
begin the distribution of the assets in a minimal period of time thus saving
costs, time and unnecessary distress.
2. Intestacy & Distribution of Assets
Making a Will is the only way to ensure that the people you wish to inherit from
your estate actually do so. Failing to make a Will will result in the law of
Intestacy being applied, and the intestacy rules will dictate who will receive
what, and often this will not accord with what you would have wanted. For
example;
a) If you are single you may want to
distribute your assets amongst selected
friends and family. The rules of intestacy will not take into account any
relationships based on friendship, and will distribute amongst relatives only,
everything passing to the State if no relatives can be found.
b) If you are living as cohabitees (unmarried couple) you may want your partner
to derive some benefit from your estate, perhaps to remain in the family home
for example. The rules of intestacy would not take your partner into account; as
far as the law is concerned, you would be treated as a single person and your
partner would receive nothing.
c) If you are married with children you might assume that your spouse would
receive everything. This is not always the case, as brothers and sisters and
often your children will also have a claim.
d) If you are a parent, you might assume that if anything were to happen to you
that your closest relatives would be responsible for the care of your children.
However, the matter will need to be taken to the Courts for them decide who
should have custody, a process which can be very drawn out and distressing to
the parties involved. This particular consequence is of vital importance if you
are a single parent or unmarried couple with children.
Making a Will is
invaluable by appointing Guardians to be responsible for the care of your
children.
Failing to
make a Will leaves control over the distribution of YOUR possessions
and assets in the hands of the State.
Making a Will puts the control back in
YOUR hands.
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3.
Inheritance Tax
The family home is often the main asset and with the increase in property values
more and more people have been caught in the Inheritance Tax net. Failing to
make a Will will result in the rules of Intestacy being applied and these will
only provide for the minimum Inheritance Tax avoidance.
The UK legislation provides that assets up to the value of £275,000 are exempt
from Inheritance Tax and anything over this threshold will be taxed at 40%. When
you add up everything you own - including personal items etc - you may find you
are worth a substantial amount of money. In addition, you might be dismayed to
discover that you also be liable to pay inheritance tax!
As an example, if your estate is worth £300,000, £25,000 of that will be taxable
at the rate of 40% which will result in £10,000 worth of tax being payable!
Making a Will is one of the best tax avoidance tools you can employ - in
addition to others and utilizing the exemptions which are available.
Making a Will is probably one of the last - and most important - undertakings
you can do for the benefit of your family and those you love…failure to make one
can have far reaching and dire consequences.
JsByrne
LLB (Hons) LPc.
www.Draft-Your-Will.com
Miss JsByrne holds a Bachelor of Law degree with Honours & a post-graduate
diploma in Legal Practice. Also gained qualification in Wills Writing & is the
owner/author of www.Draft-Your-Will.com and DYW
Wills & Estate Planning
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