If you want to know the best way to leave money in a will in the UK you’ve come to the right place.
The Best Way to Leave Money in a Will in the UK
Creating a will is about considering what you want to leave behind and who should receive it. This friendly guide breaks it down for you, making the process of writing your will easy and stress-free.
Step-by-Step Guide:
Firstly, before you begin writing your will, take some time to think about who you want to leave your belongings and assets to.
It’s essential to outline your plan for your estate early on, even before you consult a solicitor or discuss your wishes with your family.
But don’t worry, it’s simpler than it seems! Just follow these easy steps:
Step One – Make a List of Your Beneficiaries:
Grab a pen and paper, and take a few moments to jot down who you want to benefit from your estate. This could include your partner, children, other family members, close friends, or even charities that are close to your heart.
Remember, these are the people (or organizations) who will be your beneficiaries, so it’s important to consider each one carefully.
Step Two – List down all your assets and give them a rough estimate of their value.
Start with the assets that are easiest to put a price on, such as your savings and any valuable items like jewelry or family heirlooms.
Then, consider assets whose value may fluctuate over time, making them a bit trickier to assess accurately. These could include your pension, any business interests you have, investments in the stock market (such as shares, bonds, or funds), and any property you own. Don’t forget to account for any outstanding mortgages or loans secured against your property.
Finally, think about any sentimental items that you’d like specific people to inherit.
It’s worth noting that including your pension in your will depends on the rules of your pension scheme. Make sure your pension provider knows who you want your pension to go to, as this information may not automatically be included in your will.
Step Three – Consider how you want to divide your money and belongings when creating your will.
There are five main ways you can leave a legacy:
Pecuniary bequest: This involves leaving a fixed sum of money to someone, like saying, “I leave £2,000 to my son.”
Specific bequest: This means leaving a particular item you own to someone, such as saying, “I leave my jewelry to my daughter.” If the described item doesn’t exist at the time of your passing, the gift may not apply.
Residuary bequest: Here, you leave a percentage of whatever your estate is worth after all debts, costs, and taxes have been paid. For instance, “I leave half my estate to my brother.”
Reversionary bequest: This involves leaving something to someone, but if that person dies before you, the gift goes to another specified person. For example, “I leave my share of my house to my wife, and if she doesn’t survive me, it will pass to my daughter.”
Trust: This sets up a legal arrangement for your property, allowing you to specify who benefits from it after your death. For example, “I leave my share of my house to my wife for her lifetime, and then it will pass to my daughter.” Trusts can be complicated, so legal advice may be necessary.
If your affairs are straightforward, you might opt for simple residuary bequests. However, if things are more complex, you might use a combination of these methods.
For instance:
Mike, who is married with a son, leaves his share of his home to his wife for her lifetime, gives £1,000 to each grandchild, leaves his watch to his wife’s son, and donates the rest of his estate to charity.
June, who is divorced with three children and four grandchildren, leaves £500 to each grandchild, places half of her remaining estate in a trust for her son’s lifetime, splits the remainder between her daughters, with provisions for grandchildren if a daughter predeceases her.
Step Four – Check if you’ll need to pay Inheritance Tax.
In most cases, you won’t have to pay inheritance tax if:
- Your estate’s value is under £325,000,
- You leave everything over £325,000 to your spouse, civil partner, or a charity.
- If the allowance isn’t fully used on the first death, it can be transferred to your spouse or civil partner.
Additionally, there’s an extra threshold for your home. However, the rules can be a bit tricky. It’s best to seek professional advice to navigate this smoothly.
You’ve Made Your Will – What Next?
Once you’ve gone through the steps, you’ll have a good sense of what you want in your will and who you want to benefit.
Consider having a chat with your family about your decisions.
Next, it’s time to get your will written up.
If your wishes are straightforward (like leaving everything to your partner), you might be able to do it yourself.
But if things are a bit more complicated, it’s wise to seek advice from a solicitor.
Talking to Your Family About Your Will
To prevent any future disagreements, it’s worth having “the talk” with your family about your wishes.
It’s your opportunity to explain your choices and help them understand why you’ve made them.
Discussing death isn’t easy, but here are some tips to make the conversation smoother and less stressful.
Preparing to Talk to Your Family About Your Will
Get Clear on Your Wishes
When it comes to writing your will, it’s not just about who deserves what—it’s about what you envision for your money’s impact.
Start by jotting down your main priorities.
These could include:
- Ensuring your partner is taken care of
- Supporting a family member with an illness or disability
- Providing for your grandchildren’s education
- Contributing to a charity close to your heart
Once you’ve outlined your wishes, it becomes easier to determine who should receive what.
It also helps you articulate your reasoning to your family.
Drafting Your Will: A Friendly Approach
Create a Rough Draft
Having a basic outline of your will or some notes handy can help steer the conversation in the right direction.
With a draft, you can express your wishes rather than having others dictate what they think should be included.
Remember, it’s entirely up to you to decide who receives what in your will.
Schedule a Chat
Bringing up the topic of death can feel somber, so consider approaching the discussion with sensitivity.
If a formal family meeting feels too heavy, opt for a more casual setting, like during a family gathering.
Give your loved ones a heads-up beforehand so they can prepare mentally and approach the conversation with openness.
Friendly Conversation Tips:
Clarify Your Intentions
Start by sharing the reasons behind your decisions. This helps your family grasp your perspective and prepares them for what’s to come.
Focus on the broader impact of your choices rather than just the financial aspect to avoid potential conflicts.
Share the Details
Connect the specifics of your plan back to your overall goals. For instance, you could say, “Given our concerns for John’s future, I intend to allocate half of my estate to support him.”
Welcome Input
Encourage your family to express their thoughts and expectations regarding your will. While the final decision rests with you, others may offer valuable insights or raise considerations you hadn’t thought of.
They may also hold sentimental attachments to certain items, so it’s essential to listen attentively to their input.
Friendly Advice on Will Conversations:
Acknowledge the Fluidity
Highlight the unpredictable nature of life between your discussion and the end of your journey. Babies might be born, or you might experience loss. Reassure your loved ones that you’re open to revising your will to reflect these changes.
Emphasize Sensitivity
Recognize that family dynamics can be complex, and talking about wills may uncover tensions. Make it evident that your intention isn’t to criticize anyone but to ensure your wishes are honored when you’re no longer around.
Avoid Personal Criticism
Steer clear of directly discussing personal preferences or relationships. Instead, focus on what you believe would be best for your assets’ future distribution. Diplomacy is key in maintaining harmony within the family.
Stay True to Your Wishes
Be firm in expressing your desires while maintaining tact and sensitivity. Clear communication about your preferences will facilitate a smoother conversation and understanding among family members.
Final Considerations:
Reflect on Your Plan
Take some time to reflect on the discussion. It might reaffirm your initial intentions or inspire new ideas for adjustments.
Draft or Amend Your Will
Once you’ve mulled over the conversation and considered your family’s input, it’s time to take action. Whether it’s crafting your will for the first time or revising an existing one, you’re now equipped to move forward confidently.
Best Way to Leave Money in a Will Online in the UK
Can you make a will online?
Yes, making a will online is now easier than ever. With countless online will companies available, finding the best one matters.
While many claim to be “will writers” or offer “legal checks,” opting for a solicitor ensures expert guidance and peace of mind.
For convenience, consider the award-winning ‘Make A Will Online‘ service, the sole provider granted an Innovation Space Waiver by the Solicitors Regulation Authority.
Their success prompted a rule change in 2019, granting broader public access to solicitors.
Visit ‘Make A Will Online‘ website for hassle-free will creation. Read our Make A Will Online review here.
