Research consistently reveals that around half of UK adults do not have a will and, frighteningly, many do not know how to make one. Experts in the field had predicted that the pandemic would encourage people to think about wills and estate planning but there has only been a negligible increase in people making wills between 2019 and 2020.
There are many benefits to making a will including:
- being able to choose who is appointed as a Personal Representative – this person/s has responsibility for gathering in the assets and dividing them in accordance with the terms of the will
- choosing who inherits assets on death
- some tax planning advantages, depending on the value of the assets involved
- setting out funeral wishes
- peace of mind.
However, one of the main reasons to make a will is to avoid the workings of the intestacy rules. This is a strict list of people who are entitled to inherit the estate of someone who has died when they have not left a valid will. The intestacy rules can mean that people who are important to the deceased inherit nothing – an important example is a cohabitee. Even if a couple have lived together as husband and wife for many years, if they have not married, the survivor is entitled to nothing under the intestacy rules.
Consumers are often concerned about the cost of making a will and may decide to the services of an organisation which is not properly regulated, or unregulated. This is concerning for consumers. A law firm offering will writing and other legal services must be regulated, meaning that it must have indemnity insurance in place to protect the public in the event of incorrect advice being given. Unregulated will writing companies do not offer this protection.
A legal oversight body has recently announced that it will not be conducting a full review of the unregulated legal services industry. This is surprising as the body reports that unregulated firms cater for 9% of the total market for the legal needs of individuals.
A will is an important and sometimes complex document. Anyone making a will should consider whether they want to ask an unregulated organisation to prepare it or a firm which has insurance in place designed to protect the public.
To discuss this or any other private client matter, contact us.