Everything you need to know about Wills, gifts in Wills, assets and inheritance tax!
Without a Will, your assets are divided under intestacy laws, the government’s way of deciding who gets your assets, which may not reflect your wishes and your money, property etc could go to the wrong people. This can cause stress and complications for loved ones. Making a Will ensures your wishes are followed.
A Will clearly states your wishes about who should inherit all or part of your estate after you die. It is a legally binding document where you can lay out what you want to happen to any money, property or specific items, who you want to look after your pets, children under the age of 18, and who you want to be in charge of sorting this whole process out.
Everyone should have a Will – they are one of the most important documents you will ever write, yet can take just 15 minutes to complete. People often write or update their Will at life stages such as:
A valid Will reduces family conflicts by setting out clear instructions and avoiding misunderstandings or legal disputes. With blended families now common, a Will is especially important. Writing one with a legal professional allows you to explain gift choices, support charities, or exclude individuals who might otherwise inherit under intestacy laws, helping prevent challenges later.
Gifts to UK-registered charities in your Will are always exempt from inheritance tax, with no limit on the amount you can leave. Donating at least 10% of your taxable estate can reduce the tax rate on the rest of your estate from 40% to 36%, lowering the final bill. From April 2027, some pensions will be included in estates, making charitable giving an even more effective way to reduce inheritance tax while supporting a cause you care about.
Residuary gift – Which is a percentage of your estate after all your other payments, gifts and deductions have been made. This type of gift is the most valuable because it’s inflation proof.
Pecuniary gift – Which is a set cash gift (for example £5000). These gifts come out of your estate first and then the rest is divided out according to your wishes. It’s worth noting that a fixed amount can lose its value over time due to inflation.
Specific gift – Such as a valuable item like a car, jewellery or a work of art. It’s always best to contact the charity first to ensure they can accept the item.
Legacies help safeguard their work for years to come. These special gifts ensure they can continue their services to benefit future generations. The generosity from people leaving a gift in their Will funds over 70% of Heart Research UK’s life-saving work. Without them, like for many other charities, breakthroughs and treatment would drastically reduce and even stop. Another reason is that it simply feels good. Your legacy will leave behind more than just memories; you will live on through the lives you save.
Dying without a Will causes additional stress and complications to your loved ones at an already distressing time. If you have children who are under 18, your Will allows you to decide who will look after them if you and your co-parent were to die. Without a Will, the court would appoint guardians, which may not reflect your wishes. Your Will allows you to provide for them, either directly if the child is over 18 or through a trust for children under 18. A Will allows you to give items to your children, ranging from cars to sentimental items like jewellery.
Everyone over 18 should have a Will. A Will is so important as it’s your chance to have a say in what will happen when you die. Financially, dying without your Will in place is called dying intestate and may cost your family thousands after you pass away. Financials aside, having your Will in place can reduce family disagreements, ensure your assets go to where you want them to and help plan your funeral and leave specific gifts.
Big or small, any gift you leave will help prevent future deaths from heart diseases in the future.