Making a will is one of the most important steps you can take to ensure your loved ones are taken care of after you’re gone. Yet, many people make errors that can lead to disputes, delays, or even invalidation of their will. In this article, we’ll cover seven common mistakes people make when drafting their will – and how to avoid them.
Not Making a Will at All
Surprisingly, this is the biggest mistake. Many people assume that their assets will automatically go to their spouse or children. Without a will, the law decides how your estate is distributed, which may not reflect your wishes. If you die intestate (without a will), your loved ones could face a lengthy, complicated process to settle your estate.
How to avoid it: Take the first step and draft a will, even if you feel it’s too early. Life is unpredictable, and having a will provides peace of mind.
Not Updating Your Will Regularly
A will isn’t a ‘one and done’ document. Major life events like marriage, divorce, the birth of a child, or purchasing property can change the way you want your estate distributed. Failing to update your will could lead to unintentional exclusions or beneficiaries being left out.
How to avoid it: Review your will every few years or after significant life events. Make sure it reflects your current situation and wishes.
Not Naming Guardians for Minor Children
If you have children under 18, naming a guardian is crucial. If something happens to you and your partner, you’ll want to ensure someone you trust is ready to take care of your children. Without this, the courts will appoint someone – and it may not be the person you’d choose.
How to avoid it: Carefully consider who would be the best person to care for your children and ensure you legally name them as guardians in your will.
Appointing the Wrong Executor
The executor of your will is responsible for managing your estate, settling debts, and distributing assets. People often choose a close family member or friend, but this isn’t always the best option. Being an executor can be time-consuming and complex, especially if the estate is large or contentious.
How to avoid it: Choose someone who is organised, trustworthy, and capable of handling financial matters. You can also appoint a professional executor like a solicitor, especially if your estate is complicated.
Not Considering Inheritance Tax
Inheritance tax (IHT) can take a large chunk out of your estate if not planned for properly. If your estate exceeds the current IHT threshold, your beneficiaries may face a hefty tax bill. Many people overlook tax planning in their will, leaving loved ones with unexpected costs.
How to avoid it: Speak with a financial advisor or solicitor about inheritance tax and consider strategies to reduce the tax burden, such as gifting assets or setting up trusts.
Failing to Make Specific Bequests
General wording in a will can lead to confusion. For example, if you simply state that your estate should be divided equally, disputes may arise over sentimental items or family heirlooms. Lack of specificity can lead to unnecessary arguments or even litigation.
How to avoid it: Be as specific as possible. If you want certain people to receive particular assets or items, clearly state this in your will to avoid confusion.
Not Making Provisions for Digital Assets
In today’s digital age, people often forget about their online presence when making a will. Social media accounts, online banking, and even cryptocurrency can form a significant part of your estate. Without making provisions for these, your family could struggle to access these assets.
How to avoid it: List your digital assets and include instructions on how they should be managed after your death. Make sure your executor has access to your digital accounts and understands how to handle them.
Writing a will is about ensuring your loved ones are protected and your wishes are honoured. By avoiding these common mistakes, you can ensure a smoother, less stressful process for your beneficiaries during an already emotional time. Seek professional advice if you’re unsure, and remember that a well-prepared will is one of the best gifts you can leave behind.
0 Comments