In your lifetime you will write one document that may well end up being more important than any other: your will. The good news is that writing a will really isn’t particularly tricky.
This will ensure that your estate – the sum of the assets you have built up during your lifetime – is divided according to your wishes upon your death.
If you have children, it is also the document that lays out how you hope they will be provided and cared for in your absence.
It is vital stuff. And that is why it is shocking that around two-thirds of parents with children under 18 haven’t actually got around to writing a will. This matters; if you die without a will you die “intestate”. So your estate will be split according to established rules of intestacy. Even a brief scan will show you that they aren’t particularly simple, and that there is a chance that the final division wouldn’t be one you would have chosen. Worse, there are bound to be family rows over your “chattels” – pictures, jewellery and anything that might have sentimental value to more than one relative.
The good news is that writing a will really isn’t particularly tricky. They are fairly simple documents to draw up, and, if you pick the right service, can cost very little.
The best way to write a will
Many shops now offer do-it-yourself will writing kits for as little as £4.99. This may look like a cheap, easy solution (and we like those), but in most cases you are actually best spending a little more money to be sure you get it right.
Even a tiny mistake can invalidate a DIY will – make one spelling mistake in a beneficiary’s name and you could find that a feuding family ends up disputing the whole thing.
They are also easily discredited if there is any dispute over inheritance. Then there is the problem of misnaming charities in wills. A common mistake is to leave money to a general cause such as “cancer relief” rather than a specific and correctly-named charity.
Getting the will done professionally shouldn’t cost too much, and it will at least give you the peace of mind of knowing you have a correct and legally binding document.
So what is the cheapest route to this peace of mind? If you are over-55 you might go via Cancer Research UK’s FreeWill service. Cancer Research UK will contribute £100 + VAT towards the cost of getting a will drawn up and ask for nothing in return.
If you and your partner both want to get wills written they will pay the first £150 + VAT to get mirror wills written – these are wills that are identical except for a reversal of the names of you and your partner. Obviously, a donation to Cancer Research UK within the will would be a nice way of saying thank you for the help you are given (and one they are clearly hoping for).
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Those under 55 could wait until November when WillAid operates to write their wills. This is a charitable scheme where a solicitor will draw up your will for you in return for a donation to one of nine of the UK’s “best loved charities.” The scheme runs every November.
If this doesn’t appeal – or you feel you shouldn’t wait that long – shop around for the best deal with local solicitors. An individual will for a fairly simple estate should cost around £100, and mirror wills about £150. It will be more expensive than this in London, so it might be worth combining the admin with a day in the countryside.
Choose your executors carefully
One thing to watch out for along the way is who your appointed executors are – the people who will do the admin involved in sorting out your estate when you die. Many firms involved in the will-writing business – and this includes big names such as Barclays Wealth – like to encourage you to appoint them as executors. This might be tempting, but it is a mistake. Why? The usual reason. The fees attached to their work are far too high.
Barclays Wealth have, for example, been caught offering to write wills for £90 or less for some customers. But read the small print and you will find that they will be the executors, and that on your death they will be helping themselves to 4% of your estate in fees. This is extortionate – most solicitors charge around 2% (and even that isn’t exactly cheap, particularly if you have a large estate).
But they aren’t the only ones guilty of the scam. The AA, Age Concern and Help the Aged all offer online will-writing services, but are not “explicit about their costs,” says David Budworth in The Times. So read the small print when getting a will written. And if you already have a will, read the small print. Got an executor you’d rather not have? Add a codicil – an amendment that you have legally witnessed (this should cost £50 or so for a single will and £70 for a mirror will).
If you haven’t written your will yet, then there’s still time to consider who your want as your executor. If your estate is fairly straightforward then a friend or family member should be able to cope with the workload. It takes around 20 to 25 hours of mainly letter-writing over a couple of months to trace and sell assets, pay tax and debts and distribute the remaining estate. Just make sure you ask them before you appoint them.
If you would prefer to have a professional involved, shop around for a good deal and make sure you know what cut of your estate they are going to take in return for their services.
Keep your will up to date
Once you’ve had your will written, don’t forget about it. If you have a change in circumstances, such as getting married, having a child or – fingers crossed – getting a windfall of cash, then update your will to reflect the change. This can generally be done via another codicil. And if you are over 55, Cancer Research’s Will Aid will cover this cost too.
• This article is taken from our weekly MoneyWeek Saver email.
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