Why Make a Will?
By Janet Cribb
Many people think that a Will isn’t
important but they couldn’t be more wrong!
Letters that have been signed but not witnessed count
for nothing, verbal instructions are only valid if they
are given by a soldier on the battlefield!
A Will is the instrument by which money, real estate,
and personal property are distributed after your death.
Common Law, the system upon which some countries base
their Laws, allows each of us to say freely to whom
our possessions are given when we no longer need them.
In the absence of a Will that fulfills the legal requirements
of clarity, pristine condition and correct attestation
(signing and witnessing), the Rules of Intestacy are
brought to bear. These are imposed by the government
and vary from country to country and, indeed, from state
to state in places like Australia and the USA and Canada.
In the UK, for instance, a limited amount (presently
£250,000) is allowed to pass from husband to wife;
anything over that is divided between the spouse and
the children and put into trust, in other words the
capital is not available. Similar Rules apply in Hong
Kong, Australia, etc.
The government does not allow you to depart from this
life leaving loose ends. If you don’t write a
will you must make do with a default version.
In some cases this can work quite well, but in a situation
where there are substantial assets the opportunity to
make the most of tax allowances and to put in place
some financial arrangements that will reduce the size
of your estate are sacrificed and largely to the Inland
Revenue. The appointment of Guardians, especially if
the children are small, is essential.
In mediaeval times in England, the ‘common’
people - those who owned nothing and were subservient
to the aristocracy, were allowed by an Act of Parliament
in the reign of King John to possess the small strips
of land on which they used to grow their own crops.
Animals grazed on Common land (the property of everyone).
This right was confirmed by a Title Deed which defined
the boundaries of the property. With it went the right
to pass the land to another person, usually a child.
Of course in those days that would be the eldest son.
In the passing on of property Taxes were imposed.
Today's Wills are sophisticated documents by comparison
but the principles haven’t changed. The conscientious
and responsible property owner takes the time and trouble
to think about the consequences of an untimely death
and provide clear instructions to his or her family
so that the Will can be administered quickly and effectively.
Before you instruct your professional adviser, take
time to think who you want to put in charge of administering
the Will, who should be responsible for your children
and what happens if your main beneficiaries die with
you.
It is a job that almost everyone puts off - or perhaps
puts it in the too-hard basket. It doesn’t have
to be a painful experience. We do our best to make the
process as relaxed as possible. The peace of mind that
comes knowing that this small but important job is finished
is well worth the time and effort spent in completing
the task.
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Janet Cribb
Channel: Wills & Living Trusts |
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