Advice before writing a will

CaptainWales

I currently don't have a will and really want to put one in place. I am finding it hard though to decide who I want my money, assets to go to, whether this should be a % of my estate or a specific amount.

I have seen both the good money can do and how it corrupts and changes people. I've also seen a fair few family disputes over money. I would hate to think that the way I left my estate would cause any of that, but I think that's just wishful thinking on my part even if I told people of my intentions. Also leaving money to children in my family is on my list, but then I think would it be better for them not to have it until 18, 21 etc. Leaving money to charity is something I would also like to do. 

So...I have a lots of questions and thoughts running through my head and wondered whether anybody had any advice on this?

Linton

I find a top down approach helps.

1) Allocate any items such as your house or your collection of old masters you wish to leave to specific beneficiaries.

2) From the cash value of the rest decide what %s you want to leave to each of the main categories eg family and charity. You can split further into sub-categories(eg close and distant family) by % if you want.

3) From each tranche allocate a % to each of the main beneficiaries in that category and specific lump sums for the small beneficiaries.

Allocating large fixed amounts to nominated beneficiary can be a bad idea. If you die much poorer than you planned those people allocated specific items and specific sums of cash could be allocated all you estate.  In this case the % based beneficiaries would get nothing.

Once you have a good idea of what you want to achieve then consult a solicitor (not a cheap will writer) to ensure that the wording of the will meets your objectives wiith no room for any confusion.  Dealing with the "what ifs" such as a beneficiary dying before you is vital.

Emmia

If you leave your house, or collection of old masters /teaspoons, it is best not to specify the address of the house or the list of old masters/teaspoons, as if you subsequently sell the house, or the old masters/teaspoons buy a different one /buy modern art/forks and don't update your will the intended beneficiary gets nowt.

Personally I've allocated percentages of my estate to individuals and charity - if I die a billionaire some people will do extremely well (much better than I've anticipated when instructing the will) if I die with only a few beans to rub together then my estate won't be entirely swallowed by value based bequests, leaving other recipients (intended to get the bulk) with nothing. 

If I have £100k to leave and I leave two of my friends £10k each with the rest for my sibling (£80k) that works on a 10% + 10%+80%

If I die leaving only £20k, and I still specify £10k each to my friends, they'll get the lot as they have specific bequests, and my sibling gets nothing, as there is nothing left over (this is not my intention)...

If I do it on a percentage basis they'll get £2k each and my sibling will get £16k

If I do it on a percentage basis... And I die leaving £1m. My friends get £100k each and my sibling gets £800k. This is more than I'd originally intended to leave my friends, but my sibling still does very well as I intend.

SiliconChip

There is a potential issue for your executors if you leave a percentage to charities, who may well insist on achieving the maximum possible value on the sale of any assets (particularly property) in order to maximise the sum that they receive. It might be better to leave specific sums to charities and to ensure your Will is updated if your financial position changes greatly over time to either reduce or increase these sums.

Marcon

CaptainWales said:

Also leaving money to children in my family is on my list, but then I think would it be better for them not to have it until 18, 21 etc. 

It takes careful planning (and some sort of trust - discretionary/secret) if you want to stipulate higher ages than 18. Definitely one for legal advice.

Alphatauri

% is definitely the way to future proof.

I know it’s really difficult to do this but do think about some of the what ifs e.g. if one of the younger family members dies before you or at the same time what would you want to happen to their % e.g. to their children (if any) or shared with siblings.

I have made it clear in my will that it goes to children then siblings. A disaster clause sees it going to wider family. 

Think carefully about executors, ideally choose someone from the next generation. We all hope to live a long life so peers and siblings may realistically be too old to do probate. 

CaptainWales

Thanks all for the advice. 

In terms of nominating an executor, without wanting to sound big headed, I am probably the one in the family most interested and clued up about financial matters. From a practical perspective I am definitely going to try and pass some of that wisdom to others in family (if I can get them to listen!) otherwise it's difficult to choose who to nominate.

DullGreyGuy

Also consider the scenarios that major beneficiaries may not out survive you or may die simultaneously to you... if you want to leave your house to your brother what do you want to happen if you are killed together? 

km1500

The other thing to consider is if you are at this stage unsure about your wishes, is the default 'no will' scenario ok for you in the short term ? It may well he as a stop-gap

https://www.gov.uk/inherits-someone-dies-without-will

user1977

I advise you decide who you want to inherit! How likely is this to be your last Will? Bear in mind you can update it an infinite number of times before the day comes.

CaptainWales

Definitely do not want to die without a will - otherwise it will all go to my parents which is not ideal from their own tax perspective when they then die. 

"I advise you decide who you want to inherit!" - that's the difficult question I'm faced with!