Be strong willed and start to think about the future

Cambridge News 23/05/2006

Dying isn't something that most of us choose to think about all that often. It's hard enough trying to get through today (Tuesday, 23 May) without imagining what might happen in the distant future.

It's a similar story with wills. Thinking about or writing a will is a painful reminder of our own mortality. But not leaving one means you die 'intestate,' in effect without leaving any direction as to how your money and property should be divided up.

Not only does this result in your favourite donkey charity not getting the lump sum you had in mind to donate, but more seriously, it's a real headache for the relatives and friends who have to sort out your affairs. It can also be a great deal more expensive in terms of legal fees and inheritance tax.

But even when you've made a will, you can't sit back and relax. If your circumstances change, then your will should too. If you're single and you die will-less, for example, the state will divide up your estate between parents, brothers and sisters, grandparents, aunts and uncles in that order. If none of them are still living, then the taxman takes the lot.

Get married or enter into a civil partnership and everything becomes a lot more complicated. You might assume that your partner gets everything. Not so, other siblings might still be entitled to a share.

Similarly, if you re-marry you'll need to write a new will as the old one will be invalid.

If you're living together as a couple but not as husband and wife or a couple in a civil partnership then you should be doubly careful as the law may not recognise your partner at all and they could be left with nothing on your demise. Equally, if you have children, don't assume they'll automatically be given to your partner to look after - you need to get it in writing.

Outside forces can make a difference too.

This year's Budget, for example, is likely to effect between five and 10 million existing wills.

Whereas previously wills designed to avoid tax always ran the risk of falling foul of the revenue, now wills designed to protect minors, vulnerable beneficiaries and first families where there has been a subsequent marriage are also under scrutiny.

It's unclear exactly what effect these changes will have, but you need to be prepared. If the arrangements on your death involve any of the following you should take advice as soon as possible:

n Provides any age restriction as to when a child is to benefit from your estate, for example at 18 or over.

n Restricts your spouse or civil partner's access to your assets in any way. For example, if they are held in trust for your spouse or civil partner's life.

n Creates any trusts, other than those in your will, either for the benefit of minor children at age 18 or above, or to settle family disputes, e.g. on divorce.

n Has life insurance policies written into trust.

It's clear that writing a will is a complicated business and something that needs constantly updating. The effects of not writing one, however, could be far worse.