Writing a will is essential for ensuring that your loved ones are cared for long after you are gone and that your final wishes are honored smoothly and respectfully. By carefully crafting your will and considering all possible factors, you can prevent misunderstandings or conflicts. So, to ensure you don’t miss anything important, here’s a list of 18 common mistakes people make when writing their will.
Not Planning for Business Succession
Family-owned businesses can be a source of pride, a much-loved link between relatives, or simply a good source of income, and you’d never want your family to lose that. Goughs Solicitors say that effectively planning succession “helps minimize disruptions during leadership transitions, preserves the company’s value, and protects the interests of stakeholders, employees, and customers.”
Disregarding Potential Family Conflicts
Unequal distributions or unspecific instructions can cause potential family conflicts once your will is read. To avoid this, it is important to clearly communicate with your family members to manage their expectations and consider using trusts or very specific bequests to mitigate misunderstandings.
Not Consulting a Professional
Although it might be an added expense, seeking professional legal advice will allow you to ensure your will is valid and accurately reflects your wishes. A professional will also be able to ensure you’ve covered all bases, especially for a complex family situation or a significant estate.
Failing to Update Regularly
It’s important to review your will every few years, or after each significant life change such as marriage, divorce, the birth of a child, or changes in assets. According to Mark Reynolds Solicitors, “an outdated will could cause lots of complications for your loved ones when you die. For example, it can cause them to receive less than intended and possibly [pay] more inheritance tax.”
Ignoring Tax Implications
The types of bequests in your will can have varying tax consequences for your beneficiaries and loved ones. By working with a professional, you’ll be able to help minimize these tax burdens with a strategic plan that considers HMRC’s tax laws.
Not Clearly Defining Bequests
It is important to ensure all of your bequests are specific and detailed to prevent misunderstandings and ensure each beneficiary receives the intended portion. By including clear descriptions and instructions, you’ll help alleviate potential disputes among heirs.
Forgetting Digital Assets
In modern estate planning, it is important to include digital assets such as social media accounts, online bank accounts, and digital currencies. You’ll need to ensure these are accessible to allow them to be distributed according to the will.
Overlooking the Selection of an Executor
Choosing someone to manage the distribution of your estate will ensure that your will is fulfilled as per your wishes in a timely and respectful manner. Money Helper says that above all, you should choose someone you trust, but also that “it’s helpful if your executor is good at paperwork and managing legal issues.”
Neglecting Debts and Taxes
It is very important that all of your debts and taxes are settled in full before your assets are distributed to your beneficiaries; after all, someone’s still going to have to pay, and it won’t be you. So, you should make provisions in your will to settle these liabilities should it be necessary.
Omitting Funeral Wishes
While not legally binding, by outlining your funeral wishes in your will, you’ll help alleviate decision-making burdens from loved ones and most likely have your wishes upheld. Details you could look to include are your preferences around burial or cremation and the type of ceremony you’d like.
Failing to Consider Guardianship for Children
Appointing a guardian for children will ensure they are cared for by a trusted person if the worst happens to you. When making this decision, it’s important to consider the guardian’s values, parenting style, and your children’s needs. You should also name an alternative guardian should the first choice be unable to take on the responsibility at the time.
Overlooking the Impact on Beneficiaries
Beneficiaries who receive a large sum or asset can be impacted by a change in personal circumstances or government benefits. It’s important to consider this and, where possible, take steps to mitigate any negative impacts. For example, you could look to create trusts that gradually drip-feed the funds rather than offering a lump sum.
Not Accounting for Personal Property
It is important to consider your personal items, other than money, that hold sentimental value for your family members. To avoid disputes between loved ones, you should consider creating a list of items and their intended recipients.
Overlooking the Need for Witnesses
There are a lot of legal requirements surrounding the writing of wills, and it’s important to take the correct steps to ensure it’s valid and carried out as you wish. Witnesses are an important part of the process, and Irwin Mitchell says, “A will is not valid unless it is signed by both the testator and two witnesses.”
Lacking Flexibility in the Will
While regularly reviewing your will should help mitigate out-of-date bequests, it is also helpful to include alternative scenarios and contingent beneficiaries in your will. You could consider including clauses that allow the executor some discretion to adapt to unforeseen situations.
Forgetting to Coordinate with Other Estate Planning Documents
It is essential that all of your estate planning documents, including trusts, insurance policies, and retirement accounts, are consistent in detail. By having unmatched details across these documents, you risk leaving behind legal challenges or unintended consequences after your death.
Underestimating the Value of Personal Effects
By underestimating valuable personal items, you can cause disputes or unintended tax consequences for your beneficiaries. It is recommended that you get appraisals for high-value items and regularly review the value of bequests to ensure a fair and reasonable distribution between your loved ones.
Failing to Consider the Will’s Accessibility
Keeping your will in a safe, accessible spot and informing the executor of its location is essential to ensuring your wishes are accurately and correctly met. Speak to a professional to decide where you’d like your will stored, and consider options such as registering it with a court or storage service.