5 Myths of Will Writing and Estate Planning
August 22nd, 2010 Filed under: Estate Planning — Estate Planning Author
There are many and varied myths of wills and will writing – here are my top 5.
1. My spouse would get everything – therefore there is no need to write a will. Dying without a will [or a valid] will means that one has died intestate. Dying intestate means that the deceased has given up the right to decide whom the beneficiaries of his or her wealth are and ceded that power to the state – which would divide the deceased’s estate according to the laws of intestacy – this could mean if your spouse died, you could be sharing the estate with some of the extended family of whom you were never very fond.
2. My common law spouse would get the protection afforded married couples – the point above, the spouse gets some but not necessarily all of the estate. There is no such thing in law as a common law spouse. So, if the person with whom you’ve lived for any length of time dies without a will, you stand to get nothing from the estate. Writing a will with your partner prevents the loss assets you could have expected to inherit
3. Inheritance tax is a problem for the rich. Most people have assets in excess of the inheritance tax threshold. A bit of planning, and the figures come to light. In our experience we come across people who for want of an hour or so and a few hundred pounds in fees end up paying thousands, tens of thousands in inheritance tax. In certain cases, the family home has had to be sold to settle the inheritance tax bill.
4. It would be tempting fate. While we all have our beliefs and superstitions there is no correlation between writing a will and death occurring. On the contrary not writing a will is to tempt fate by risking intestacy with all expense and hassle involved.
5. My affairs are so simple I do not require professional help. In over 20 years of my involvement in writing and drafting wills. I have met only one person who did not require help. He was a disabled gentleman who had so little he there was barely enough in his estate for a funeral. He got a cheque for a refund of his fee with his will.
In simple terms, wills prevent intestacy. While they are grieving your demise, the extra hassle expense and possibly bad feeling arising from having to second guess your wishes is on they could do without.
Ade is an estate planner and can be found at http://inherits.info. You may get expert advice on the best way to set out your wishes in a foolproof manner
