Wills & Probate Law
Why make a will?
Although it is perhaps not the most pleasant thing to think about, it is the inevitable and if not dealt with the consequences may be those not intended by you. If a will is not made, a deceased's property will automatically be distributed according to the rules of intestacy dictated by the law.
For example, if you are married you would assume that all your property would automatically pass on to your spouse. However, this is not always the case.Under the intestacy rules only property up to a certain value can pass to your spouse. If the property exceeds this value your spouse may have to share the value with your children. If you have no children then the value may have to be shared with your brothers and sister or even nieces and nephews.
Moreover, if you have a partner and are not married, they have no automatic rights to your property should you die. Making a will however, is a way of ensuring your property goes to those you wish them to.
Wills are also a good way of ensuring that funeral and burial arrangements are carried out the way you wish. Moreover, opting for a carefully drafted will often can result in paying less inheritance tax upon ones death.
How a will works?
There are various things to consider before making a will. It is first essential to consider what property and possessions you have.Then you must think about who you want to benefit from your will and these people are known as the beneficiaries of the will.
Moreover, it is essential to consider who is going to carry out the wishes set out in the will, these people are known as the executors. The executors will be responsible for collecting together all the deceased's assets, paying off any relevant debts, taxes, funeral and administration costs out of money in the estate. Then they will need to pay out the gifts and transfer any property to beneficiaries.
There are a number of requirements relevant for making a valid will: it must be in writing, signed by the person making the will in the presence of two witnesses. The witnesses must also sign the will in the presence of the person making the will. Notably, witnesses or their married partners cannot benefit from the will at hand.
Notably, if you change your mind or your circumstances change your will can be altered. It is advisable to regularly review your will in order to make sure that it still reflects your wishes.
How trusts work?
This is a useful device which can be used to benefit those you wish with your assets however with the ability to bypass the probate process upon the death of the testator. This process works by putting your assets into a trust device which essentially divides ownership of the assets between trustees and beneficiaries. A trustee is appointed to administer the trust and carry out any necessary obligations such has making payments to you during your lifetime. Thus while you are alive you will still have access to your assets and you may have income paid out to you from the trust.
Like a will, you also pick beneficiaries (anyone who benefits from the trust), they will benefit from what's left in the trust once you have passed away. This will happen in a manner by passing the probate system. The difference between a trust and a will is essentially that a trust enables your assets to be transferred to the relevant beneficiaries whilst you are alive. On the other hand, such transfer only happens upon death through a will.
Notably, a trust is generally created through a deed.