Making a Will is one of the most important steps in effective estate planning, yet it is often overlooked. A properly drafted Will ensures that your assets are distributed according to your wishes and that your loved ones are protected. At Applegrow, we help individuals plan ahead with clarity, confidence, and tax efficiency.
A Will allows you to decide who benefits from your estate, appoint trusted executors and trustees, and put suitable arrangements in place for family members. It also provides an opportunity to plan in a way that can reduce the overall inheritance tax burden.
In addition, a Will enables you to appoint guardians for minor children and ensure that appropriate financial provision is made for their future.
If a person dies without a valid Will, their estate is distributed according to intestacy rules rather than personal wishes. These rules may not reflect your intentions and can lead to unintended outcomes.
For families with children, the surviving spouse or civil partner is entitled to:
• A statutory legacy of £322,000 (for deaths from 26 July 2023)
• All personal possessions
• One half of the remaining estate
The other half of the estate passes to the children, who inherit equally once they reach the age of eighteen. If a child has already passed away, their share is inherited by their children.
If there are no children, the surviving spouse inherits the entire estate. Where there is no surviving spouse, the estate is distributed among other relatives in a fixed legal order. If no relatives exist, the estate ultimately passes to the Crown.
Different intestacy rules apply in Scotland, making tailored advice particularly important.
If your children are already financially secure, you may wish to leave assets directly to grandchildren. This approach can help avoid an additional inheritance tax charge that might otherwise arise when assets pass through the next generation.
Thoughtful planning can preserve family wealth and ensure that future generations benefit more effectively.
For greater flexibility, you may choose to leave decisions to trustees through a discretionary Will trust. Trustees can consider the circumstances at the time of your death and distribute assets in a fair and tax-efficient manner.
Trustees are usually guided by a non-binding letter of wishes, allowing you to express preferences while retaining flexibility for future changes.
Your signed Will should be stored securely and be easily accessible when required. Executors and relevant family members should know where it is kept.
It is also helpful to prepare a financial data sheet summarising your affairs. This can significantly ease the administrative burden on executors.
You should review your Will regularly, particularly after changes in tax legislation or major life events such as marriage, divorce, births, or significant changes in wealth.
Life insurance policies should generally be written in trust for named beneficiaries rather than forming part of your estate. This helps ensure quicker payment and may reduce inheritance tax exposure.
A clear financial summary should include:
• Location of your Will and important documents
• Funeral preferences and personal wishes
• Details of executors and professional advisers
• Tax reference information
• Main assets and property holdings
• Mortgage and lender details
• Other liabilities
• Pension and insurance arrangements
• Record of gifts made in the last seven years
Estate planning requires careful thought and professional guidance. Applegrow supports individuals by:
• Advising on Will planning and updates
• Identifying inheritance tax planning opportunities
• Structuring trusts and asset distribution
• Helping prepare clear financial summaries for executors
Our advisors can help you protect your assets, reduce tax exposure, and ensure your wishes are clearly set out for the future.
