The benefits of writing a will and how to do it for free

The majority of us haven't drafted a will

One of the most crucial things you can do for your loved ones and yourself, however, is this.

A will is a powerful tool against the tax collector because it can be one of the easiest ways to lower your inheritance tax liability. However, most of us have never bothered to write one.

The laws of intestacy govern your estate if you pass away without a will. In the event that you are married, your spouse will inherit any jointly held assets, while your children and spouse will split the remainder of your estate. The first 250,000 plus half of the remaining amount goes to your spouse, and the remaining amount is divided between your children.

The issue here is that if everything passes to your spouse, there is no inheritance tax owed; however, if your children receive more than £325,000, they will be required to pay taxes. This issue can be avoided by writing a will.

Making sure your money is distributed to the people you care about is another reason to have a will. Lacking one could result in your money going to a distant relative or an ex-partner you haven't yet divorced instead of your long-term partner. Unless you have a will in place, your partner would receive nothing at all because unmarried partners are not covered by the laws of intestacy and there is no such thing as a common-law marriage in the UK.

"Though we would prefer not to think about our own mortality, it is an important consideration to factor in when it comes to wealth planning, inheritance, and any loved ones we may be leaving behind," says Lisa Caplan, director of advice and guidance at Charles Stanley Direct.

"No matter how wealthy you are, inheritance can be a challenging maze to negotiate. Consulting a financial advisor can help you make sense of the situation and implement efficient estate planning techniques to ensure your beneficiaries receive the most from your estate upon your passing.

An essential component of inheritance planning is creating a will, which is one way to ensure that your desires will be honored after you pass away. It can also speed up the process, prevent arguments, and ease the burden on your family during what will be a very trying time.

The process of creating a will doesn't have to be difficult; it can even be done for free.

Benefit from the Free Wills Months.

Every March and October is Free Wills Month. Through this initiative, anyone over 55 can have a will made or updated for free by a solicitor (if you're writing your will as a couple, only one of you needs to be 55).

Customers are urged to leave a legacy to a charity in their will in exchange for the free legal advice, and hundreds of law firms throughout the UK participate. Oxfam, The Salvation Army, Samaritans, and the British Heart Foundation are examples of charities. A donation to one of the listed charities is not required.

You can schedule an appointment later than March, but you must reserve a time slot by 5 p.m. on Monday, March 31st, in order to participate this month. On the Free Wills Month website, enter your postcode to locate a participating solicitor in your area who is available. The free consultation could help you avoid paying hundreds of pounds in legal fees.

Don't worry if you miss Free Wills Month or are too young to take part; Will Aid is open to anyone who is at least 18 years old and takes place every November. Any adult can have a basic will written by hundreds of solicitors as part of a UK-wide campaign that involves seven charities. Instead of charging their usual fee, they request a donation to the charitable will-writing program Will Aid. The recommended donation amounts are 180 for two simple "mirror wills" or 100 for a single will. The charities receive the donations.

Free wills are obviously popular, so if you're interested in either scheme, you'll need to move quickly to secure a spot.

When drafting your will, there are six steps that can be useful.

When writing your will, Olly Cheng, director of financial planning at Rathbones Group Plc, offers his best advice.

Make long-term plans: It's critical to ensure that your children are financially shielded from future financial difficulties. Thus, think about who you would designate as your guardian to look after your children until they are eighteen and how you want to divide the estate. Otherwise, in the event that you or your partner die suddenly, the authorities might have to make that choice for you. Giving to a charity can help reduce the amount of inheritance tax owed on your estate while simultaneously supporting a worthy cause because gifts to charities are exempt from inheritance tax. Furthermore, the tax collector would receive a smaller portion of your estate if 10% of your net estate was left to charity. This is because the rate of IHT that applies upon death is lowered from 40% to 36%. Transfer assets free from IHT: Upon death, you can transfer assets up to the amount of your nil rate band (325,000) tax-free. However, you won't be required to pay any IHT if you leave your spouse or civil partner your entire estate. The residence nil rate band, which decreases for estates worth more than £2 million, is an additional 175,000 allowance available to anyone who transfers the family home to direct descendants. It is advisable to stay below the IHT threshold, as failure to do so will result in a 40% charge on your estate upon death. To legally bind your will, make sure it is duly signed by two independent, adult witnesses who are not beneficiaries or spouses of potential beneficiaries. Giving an early inheritance: Also referred to as lifetime gifting, passing on wealth while you are still living can help lower future inheritance taxes, give you more control over how your inheritance is spent, and allow you to watch your loved ones reap the rewards of your kindness. This could happen in a variety of ways, such as by assisting them in starting their own business or moving up the real estate ladder. Keep an eye out for changes to pensions and gifts: In last year's Autumn Budget, Labour focused on pensions, and chancellor Rachel Reeves declared that unused pension funds would no longer be exempt from IHT starting in April 2027. It is worth keeping an eye on the Spring Forecast to see how these changes will actually play out, as this could have a significant impact on people's retirement plans.

Your will should be updated.

Remember to keep your will current after you've written it. Divorce nullifies any prior wills, but marriage does not.

Additionally, make sure your will is kept in a secure location that will be easy to locate after your passing.

Cheng at Rathbones says, "It's important to review your will on a regular basis to make sure that it matches your current wishes, especially after life events like marriage, divorce, and the birth of children and grandchildren."

Writing a will is an inexpensive and simple process.

Do it yourself: A do-it-yourself will-writing kit costs about £20 on the high street. However, this is only appropriate for those with very basic financial matters, and it is simple to make mistakes that could make it invalid. Services with a set fee: A fixed-fee will-writing service might be a better choice. The starting price for Which? and Co-op Legal Services is 150. Find out if a will-writing service is part of your premium bank account. If you decide to add legal coverage to your home or auto insurance policy, you may also be eligible for a free will. Online resources: You may also use websites like Make A Will Online or Farewill.com. To make your own will, you respond to online questions. After a specialist reviews it, you receive a link to download, print, and sign it. You could spend between £60 and £100 on a single will and between £90 and £160 on a joint will using these internet services. You can easily update your will whenever you want, sometimes for a small additional fee, which is an added benefit of online services.