Dying without a will, or ‘intestate’, can often have unintended and unfair consequences, but especially so for single people and unmarried couples who live together.
Under the rules of intestacy if someone dies without a valid will, unmarried partners, close friends and charities can all miss out. What’s even worse, people need to make sure they’re being vigilant against fraudsters making false claims to exploit assets or estates they are not entitled to.
Having a will allows individuals to set out exactly what they want to happen with their assets when they die.
Clare Moffat, finance expert at Royal London, says: “Talking about matters related to death can be challenging; however, it is crucial to have these uncomfortable conversations to ensure your assets are distributed according to your wishes. Making assumptions about who will benefit from your estate can lead to issues such as the wrong version of the will being relied upon, your entire estate going to the Crown or worse - it going to a fraudster. When someone dies intestate, set rules determine who receives the estate. Where there are no surviving relatives, the estate will pass to the Crown. Before that happens, these estates are listed as ‘Unclaimed Estates’ on government websites. Whilst the list is used by relatives and genuine firms that trace relatives, it has recently been highlighted that it is potentially being used by fraudsters to claim these estates. These fraudsters might claim to be a friend or appear with a will and claim the estate.
“Royal London’s annual Financial Resilience Report shows that single people are less likely to have a will than someone in a relationship and could therefore be at higher risk of complications once they die. This could be because they don’t know who to leave their estate to or that they believe their estate is not large enough. It’s also a possibility that they don’t want to deal with the life admin and aren’t worried about what happens after their death. For many people, their estate only consists of the house. But, with house prices increasing exponentially, that house could be very valuable.
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“Writing a will can give you peace of mind that those who you want to inherit will benefit instead of the Crown or even a fraudster. You don’t need to give your estate to family or friends, the beneficiary of your estate could be a charity or even for the care of a favourite pet. And it means less chance of fraud.
“Leaving copies of your will with a solicitor or friends or family is important too, and it’s worth reviewing it every few years and noting that you have done this so that no-one else can claim to have ‘found’ a more recent will.
“There are some assets which won’t form part of your estate though. For example, most pensions are not part of your estate and pension providers have a duty to investigate who you would want to receive the money. This means that if there is a potential fraud with a new will appearing, the insurance company could still pay out to family members as they don’t have to follow the terms of the ‘new’ will. Similarly, insurance policies set up under trust will be the responsibility of the trustees.
“You might not want to think about, or perhaps you don’t really care what family members receive on your death, especially if relationships have been strained. But most people wouldn’t want a fraudster to steal their property or the Crown to receive it. Taking action could prevent that.”
Clare Moffat, finance expert at Royal London, explains the five things you should never do when it comes to writing a will.
Don’t keep putting it off
Writing a will often never makes it off the to-do list, but having a valid, up to date will is an important step in making sure your assets go to those you want to receive them. You may not think you have many assets to pass on, but if you own a house, it’s important to include it in your will. It’s also important, if you have children, to express who you would like to be responsible for their care. Writing a will might seem like a tedious task but it’s easier than you think.
Don’t forget to update it
It’s important to think of your will as a live document, and therefore one that reflects your stage in life. If you’ve recently been through a big life event such as marriage, divorce, you’ve bought a house or had children, make sure your will reflects your new circumstances. Reviewing your will can be just as important as writing it.
Don’t ignore your living status
If you live with your partner unmarried – also known as cohabiting – it’s even more important to keep an up-to-date will, as you won’t have the same automatic inheritance rights as those who are married. This means that anything which belonged to the person who died will usually go to their relatives, even if they have cohabited with their partner for many years.
Don’t keep it a secret
While no one likes to talk about death, it’s essential we have these uncomfortable conversations with our loved ones to avoid causing problems for them after you’re gone. Once you’ve written a will, make sure your next of kin, and your chosen executor (the person who carries out your wishes) knows where to find it. This applies to all your financial documents.
Don’t forget your pension
People often use the term ‘estate’ to mean everything someone leaves behind when they die, but your pension won’t normally form part of your estate, so won’t be covered by your will. Instead, you should make sure that you fill in a nomination of beneficiary form, so that the pension scheme knows who you would like to receive it. In some cases, the pension can be worth as much or more than the value of assets in the estate.
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