Making sure your financial affairs are in order before you die is not something many UK adults under 50 are rushing to do, according to research by law firm Collyer Bristow.
It released the report ‘An Age of Apathy: Changing the conversation around Wills’, which featured a survey of 374 individuals aged between 18-50 with an annual salary of £50,000 ($63,000, €56,000) or over.
The survey found 68% do not have a valid Will, but 82% believe that having one is either fairly or very important.
Just under a quarter (23%) of respondents presumed that, in the absence of a Will, all their assets and possessions would automatically be left to their spouse
Where there’s a Will…
Peter Savage, director at Fairstone Northern Ireland (NI), told International Adviser: “It is something that we encourage all of our clients to do.
“We have an estate planning service that can help out because it directs the assets to who the client wants to get them.
“If you don’t have a Will it goes into the intestacy rules and it doesn’t recognise your partner if you are not married, or stepchildren.
“It divides it in accordance to those rules and it may be the way you want them distributed. It is important to have a Will because you want it to reflect your wishes.”
There’s a way
Collyer Bristow’s survey also found the top reason given for not creating a Will was shortage of time (25%).
The second most common reasons, each stated by 17%, were they believed they were too young to need one and thought they did not have enough assets to require a Will.
Savage added: “I would encourage anybody who has any form of assets to get a Will in place, even more so once they have children.
“Without a Will, it takes a bit longer because you have to find all of the assets.
“Even if it is going to the people you want, it speeds up the process especially if they are relying on what is being left behind.
“Get a Will and review it every five years.”
Illness
The law firm also asked respondents what would motivate them to create or review a Will.
Some 53% said being diagnosed with a serious illness, which was followed by arrival of children (40%).
Other significant life events included getting married (28%), buying a property (23%), and starting a business (12%).
Savage said: “Don’t be waiting for a ‘what if’, because it could be far too late. You might get too ill or become mentally incapacitated.
“Don’t leave it to chance, that is effectively what you are doing.
“For the sake of getting something drafted, which doesn’t take long or have to be a detailed spectacle, it just makes things a lot easier and a lot tidier on their death.
“If you are getting married, you have to be mindful of the fact that people can revoke your Will. If you get married several times, make sure you update them.
“That is the minimum in terms of estate planning.”
Lack of understanding
Peter Daniel, head of private wealth at Collyer Bristow, said: “It is very concerning to see that such a large percentage of individuals do not have a Will, despite realising the importance of having one.
“Our research shows a clear lack of understanding of the process of making a Will; the application of inheritance tax and, most importantly, what happens to your assets if you pass away without a Will.
“By having a valid Will in place, individuals and families can reduce the likelihood of a dispute and ensure that all wealth is distributed as intended.”
