The Life Stages That Go Into Legacy Making

Record property values and family structures have made inheritance planning an increasingly important issue, yet research shows that more than half of UK adults do not have a will in place – and this figure rises to almost 60% among parents.

Many of those with a will who experience a significant life event do not then update it, even though each such event has an important impact on outcomes if you die without leaving a will, which is why it is so important to have one in place and to then keep it up to date.

People can have different reasons for not doing this, but there are a strict set of rules which govern how a person’s estate is distributed if they die ‘intestate’ (without a will) and issues may arise if you pass away while in this position.

So, when should you think about writing or updating your will? Let’s look at what happens at some key life stages:

Buying a property

When buying a property, you will, in most circumstances, want to protect the interests of those close to you, especially if you’re a co-habiting couple who buy a property together or agree that one has become entitled to a share, or where children from previous relationships are involved.

Property ownership needs to be structured to reflect this and the intentions of each upon death, with specific options available depending on your wishes and personal circumstances.

Protecting assets for children from an earlier relationship

Ring-fencing assets you bring into the relationship and providing for children from previous relationships are common challenges in this situation.

Together with appropriately-structured property ownership, the use of trusts can offer effective solutions to practical day-to-day problems.

Moving in together

Co-habiting couples do not have the protection that comes with marriage or civil partnership – many believe in the idea of so-called ‘common law marriage’, assuming they have legal rights on death, only to discover that the intestacy rules do not provide for co-habiting partners.

Getting married

Any existing will is automatically revoked when you get married or enter into a civil partnership, so this is an important item on the checklist, together with the cake and the honeymoon destination.

If you want to agree what will happen to assets that you bring to the marriage, you may consider a pre-nuptial agreement that sets out both sides’ intentions.

Having children

Use your will to appoint one or more guardians if you have children who are under 18 as the guardians will be legally responsible for the children if both parents die before they become adults.

Your will can set out your intentions, for example, how your children are to be raised by the guardians or the age at which you would wish your children to inherit.

Getting divorced Getting an up-to-date will in place can often be overlooked in divorce cases, but an existing will that leaves everything to your spouse remains valid until the decree absolute is confirmed, even if you have separated or received your decree nisi. Wills are not written in stone, and should reflect your evolving wishes and circumstances – as life moves on, so should your inheritance planning and your will.