The experienced team at Prestige Wealth Solutions, based in Dubai, have noticed that many people, when talking to them either at work, or in their own lives, about writing or amending their will, assume many things to be true when, in fact, they are not the case. From this information, here are four examples of these assumptions, and the implications of such inaccurate beliefs.
My partner will simply inherit everything
This is not the case. Whether this involves a spouse or legal partner, as defined in 2004 by the UK Civil Partnership Act, without a valid will, that partner will receive everything up to a value of £450,000 and the personal possessions. Beyond that, the balance of any estate is then divided. Half will pass to any children they have either at age eighteen or if they should marry before this. The other half is then held in trust during the lifetime of the surviving spouse or civil partner and they will only receive the income generated. On this person’s subsequent death, the balance then also goes to the children.
If I don’t make a will, it will still be okay
Some people do adopt this “head in the sand” attitude. Their belief is that, somehow, the world will simply know what they wanted. Such people are said to have died “intestate”. This means that the estate will be distributed according to the rules of intestacy. This also leads to delays in settling the estate and can also result in costly administration charges.
Everybody knows how I want my funeral to proceed
Whether this is true or not, many disputes do arise between family members about how they want such an event to take place. This may reflect their wishes, rather than those of the deceased. You can clearly set out the arrangements you wish in your will.
Once it’s written I can just forget about it
The circumstances of your life will change, and these often mean your will should be redrafted. Generally, unless made clear in the original that this event is expected, then a following marriage or civil partnership automatically revokes a will and intestacy provisions would then apply. Other life-changing events such as divorce or an addition to the family often means a new will should be drafted to reflect these changes.
Key points a will helps you achieve
Having highlighted just four of many assumptions, you will appreciate the importance of leaving a will. This allows you to identify specific gifts to be made or ensure that your estate passes to a single beneficiary. There are many other benefits which the PWS team highlight from your completing this process.
A will allows you to appoint the executors you wish to handle your estate. Executors obtain a grant of probate, collect the assets and distribute them according to the terms you have set down. Should you have children, a will allows you to appoint guardians and make it clear who you wish to take care of your offspring.
You also have the opportunity to set out details of any trusts that you wish to become effective in the event of your death. A will also helps to avoid potential inheritance tax bills that might otherwise arise.
A will matters
After examining the above points, you are sure to appreciate the importance of an effective will. The simple advice is to obtain professional help to make sure that your final wishes are both clear and then respected.