1 March 2019
At the start of Free Wills Month in March, Brewin Dolphin – one of the UK’s leading wealth managers – is encouraging Brits to think about writing or updating their wills and to consider creating a Lasting Power of Attorney (LPA). Research by Brewin Dolphin reveals that over half (55%) of Brits and nearly a third (30%) of people aged over 55 don’t have a will.
Liz Alley, Divisional Director, Financial Planning, Brewin Dolphin, provides tips on how Brits can overcome the barriers preventing them from putting these important documents in place and some of the key things to consider.
- Put wills on your life admin “to-do list”
The most common reason for not having written a will is simply because people ‘just haven’t thought about it yet’, with half (50%) of Brits stating this as the reason why they don’t have one in place. This is also the reason for nearly two-fifths (39%) of those aged over 55 who don’t have a will. The simple act of creating a “to-do list” for life admin tasks such as this will ensure it stays top of mind. We all lead such busy lives that it can be easy to put off estate planning, but it’s best to put one in place sooner rather than later. Not only does this ensure that your wishes are carried out, but it also helps to reduce the emotional and financial burden on loved ones at an already difficult time.
- Envisage your legacy
Our research found that nearly a fifth (17%) of Brits don’t have a will because they don’t like to think about their own death. It’s not nice to think about your own mortality but envisaging the legacy we want to leave our loved ones can be a more positive way to start planning your will. Imagine the pleasure it could give someone close to you.
- Consider helping loved ones financially now
Over half (51%) of people in the UK haven’t discussed their will with their family or friends and of these, one in seven (15%) don’t intend to. Free Wills Month creates the perfect opportunity to talk to those close to you about inheritance matters. For instance, you can talk about the items you might like to pass on, as well as discuss how they might spend any inheritance. When people have conversations about inheritance they often discover that they can help their loved ones financially now, rather waiting until they’ve passed away. As well as being able to see first-hand your loved ones benefiting, this can also help reduce inheritance tax.
- Think about your individual circumstances
Over two thirds (69%) of unmarried couples who live together don’t have a will and this is especially surprising when considering that unmarried couples don’t automatically inherit from their partner unless they own property together. For those who pass away without having established a will, referred to as dying ‘intestate’, the law will determine what happens to their estate and who will receive their money, property and possessions. By creating a will, you will ensure your wishes are met regardless of your individual circumstances.
- Create a Lasting Power of Attorney (LPA)
A Lasting Power of Attorney (LPA) is a legal document in which the individual appoints one or more people to act for them if they become incapable of making decisions. This can only be set up at a time when the individual, or “donor”, has the mental capacity to do so. It is therefore important to think about this when you are in good health so that unnecessary stress is not put on your loved ones should it be necessary for them to take control of your financial decisions. For example, even if you are married or in a civil partnership, your spouse will not automatically be able to deal with your bank accounts and pensions, and make decisions about your health and care, if you lose the ability to do so, if you have not specified this in your LPA.
ENDS
The value of investments can fall and you may get back less than you invested.
The opinions expressed in this document are not necessarily the views held throughout Brewin Dolphin Ltd
Please note that this document was prepared as a general guide only and does not constitute tax or legal advice. While we believe it to be correct at the time of writing, Brewin Dolphin is not a tax adviser and tax law is subject to frequent change. Tax treatment depends on your individual circumstances; therefore you should not rely on this information without seeking professional advice from a qualified tax adviser.
PRESS INFORMATION
For further information, please contact:
Richard Janes richard.janes@brewin.co.uk / Tel. +44 (0) 20 3201 3343
Sian Robertson: Sian.Robertson@brewin.co.uk / Tel: (0) 20 3201 3026
Payal Nair payal.nair@brewin.co.uk / Tel: +44 (0) 20 3201 3342