Why making a will should be top of your New Year’s Resolutions list

Hogmanay can be a time of reflection on the year that has passed and planning your goals for the year ahead, whether it’s spending more time with loved ones or cutting back on the indulgences of the festive season.

If you are looking to the future, one aspect often overlooked is ensuring your affairs are in order and that you have an up-to-date will. Although it may be an uncomfortable topic, having a will in place can remove unnecessary stress and anxiety that your loved ones face when you pass away.

Protecting your loved ones

A will ensures loved ones are cared for after your death. This could include nominating guardians for your children under the age of 16 or creating a trust within the will to hold assets for a vulnerable beneficiary,

Avoiding legal complications

When someone dies without a will, their family can face additional expenses and legal hurdles in order to administer the estate.

A key function of a will is to appoint executors. These are trusted individuals nominated by you to take control of your estate and distribute it according to your will. Without a will, your family must apply to the Sheriff Court to be appointed as executor. Only those who are a beneficiary of your estate (discussed below) can be appointed. This limits who can apply and may mean that individuals who you may not wish to carry out the role can take control of your estate, such as estranged family members.

Your executors also need to obtain a Bond of Caution. This is an insurance policy which protects the beneficiaries of your estate from any errors or misconduct by your executor.

The premium for a Bond of Caution is costly, and there are additional legal fees payable to prepare the paperwork for the executor appointment and Bond of Caution. These can be avoided with a will in place

Ensuring your wishes are honoured

The law dictates that where there is no will, an estate is distributed in a specified order. Ordinarily, your spouse or civil partner receives a limited and prescribed amount from your estate, with the majority then passing to your children. This may leave your surviving spouse or civil partner in a worse financial position than if you had prepared a will.

Where you are not survived by a spouse, civil partner or children, the law dictates your estate passes to siblings, parents and in the event none of these people have survived you, it passes to more distant relations.

If you are unmarried but live with a partner, it is essential to prepare a will to ensure they inherit from your estate. Without a will, your partner has no automatic right to your estate and must apply to the Sheriff Court to make a claim against it. They are under a strict time limit to do so and are limited in what they can claim.

As such, with no will in place you don’t have control over who your estate passes to. Estranged relations may benefit from your estate at the expense of who you wish to inherit.

Inheritance Tax Mitigation

Meeting with a solicitor to discuss your will also provides a crucial opportunity to get advice on actions you can take to mitigate your estate’s liability for Inheritance Tax, which may mean more of your estate passes to your intended beneficiaries.

This Hogmanay, raise a glass to making sure your family is looked after the way you’d want them to be after you’ve gone.

Contact a qualified solicitor to review or prepare your will and ensure your wishes are honoured, your family is protected, and your estate is managed exactly as you intend