Why is a Will is an essential part of financial and estate planning?
In recent news, the tragic and untimely passing of singer Liam Payne has prompted important conversations around estate planning. While the full circumstances are still unfolding, reports suggest that he may not have left a valid Will outlining his wishes for his estate – supposedly worth over £24 million. If this is true, it serves as a sobering reminder that no one is too young or too healthy to put their affairs in order.
Writing a Will is a fundamental part of the process of protecting your legacy, yet it is a step that is often overlooked, delayed, or underestimated. Here are some of the main reasons why a Will is crucial to have, not just at an older age, but at any stage of life.
1. Ensuring your wishes are taken into account
A Will ensures that your assets – including property, savings, a business, or personal belongs – are distributed according to your wishes. In cases where someone dies intestate, it falls to the courts to decide who inherits what, which may not be aligned with your wishes. Not only can this cause unnecessary delays and legal costs, but it can also trigger family disputes, which is not something anyone likes to think of happening when they have passed away.
2. Protecting partners and loved ones
Without being married or in a civil partnership, your partner is not automatically entitled to your estate under intestacy laws. A Will allows you to ensure they are provided for, along with stepchildren, close friends, or charitable causes that matter to you. It’s your opportunity to leave behind a thoughtful, tailored legacy.
3. Ensuring your children (and pets) are looked after
If you are a parent, writing a Will offers the opportunity to nominate legal guardians for children under the age of 18. Without a valid Will, it is usually up to the courts to decide who will be responsibility for and take care of your children. Outlining your wishes in a Will will make give you and your loved ones peace of mind that your children will go into the care of someone you trust. A Will also offers a chance to outline your wishes for the care of any pets you may have, after your death.
4. Tax efficiency and financial planning
An up-to-date Will, structured with the guidance of an accountant or estate planner, can help minimise inheritance tax liabilities. An advisor can also help you make the most of trusts, lifetime gifts, and charitable donations, to ensure your estate is managed efficiently and with intention.
5. Business succession
If you are a business owner, it is important to carefully consider your business succession, even if you have no current intention of exiting. As part of your Will, you can name your chosen successor(s) for your business, preventing major issues which could trigger significant disruption to your business or even its closure.
6. None of us know what is round the corner
We may all know it in theory, but it can be hard to put the knowledge into practice that death can often be unexpected. It’s not an easy thing to think about, but we don’t believe that writing a Will should be considered morbid – it is simply a responsible act that can help you protects your loved ones and ensure your wishes are known even after you’re gone.
How Mercer & Hole can help
We can help you take the next steps to plan your affairs in your lifetime, to ensure you have sufficient means on which to live and leave more value to your beneficiaries.
By planning to ensure reliefs and exemptions are utilised and maximised, we can help keep tax liabilities down.
Considering the merits of involving trusts (in lifetime and/or on death) can secure protection for assets – possibly just until such time that a beneficiary is ready to hold wealth outright, or perhaps to provide for further generations. Trusts frequently prove useful in the scenario where a second marriage may be involved.
Keeping beneficiary details within a lifetime trust deed has the additional benefit of preserving privacy, whereas a Will becomes available for public view following grant of probate. Our trust specialists can provide bespoke advice based on your circumstances and intentions.
Our role is to understand what is important to you – your needs, views, objectives, and ambitions – so we can help you plan for the future. We do not have a ‘one size fits all’ process. Instead, we will provide you with a plan that is individual and right for you. This can range from updating your Will through to structuring investments and pension plans. Find out more about what we offer in our estate planning and financial planning services.
Get in touch with our team
Losing someone unexpectedly is always painful. The absence of a Will can compound that grief with legal uncertainty and avoidable stress. We always advise our clients not to wait for a certain milestone, or a health scare. It’s important to take this step now if you can, for the sake of your legacy and those you care about most.
If you would like support in getting started, please reach out to Alison Palmer, Jo Bateson, or your usual Mercer & Hole contact. It’s never too early to plan for the future.
