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7 misconceptions about wills, trusts and estate planning

22nd August 2014 Print
Will

If you’ve been putting off writing your will, it’s time to consider seriously doing so. For many people, misconceptions hold them back. Here are some of the most common myths about writing a will:

Myth 1: “Making a Will Is Tantamount to Tempting Fate”

This is purely superstition. Writing your will won’t have an effect on your chances of dying – these will remain the same. All it will do is ensure that your estate is distributed as per your wishes, in the event of your death. It’s better to be prepared than not. 

Myth 2: “As I’m Married, My Spouse Will Automatically Get Everything”

Steak Tartare

On your death, your spouse will inherit the first part of your estate – this is your personal possessions and at least the first £250,000. Without children, your spouse will inherit your personal possessions and the first £450,000. Your spouse will only inherit everything if your assets fall within these values. Anything else will be held in trust and distributed between your children or other family members. 

Myth 3: “The Children Can’t Be Executors Because They Are Beneficiaries”

It’s actually common for the Executors to be Beneficiaries of your will. In theory, you can assign whomever you like to be your Executor. Two executors are usually recommended. 

Myth 4: “When I Die, My Loved Ones Will Have to Pay My Debts”

Your debts will not fall to your family, but they will be paid through your estate, meaning you may not be able to leave the legacy to your family that you’d like to. 

Myth 5: “If I Die Without a Will, the State Will Get Everything”

This is false. Your assets automatically go to your spouse and family. The state only takes everything if there are no relatives that can be found. It’s still important to write your will so you can state who gets what upon your death. 

Myth 6: “The Cost of Probate Will Swallow up All of the Estate’s Assets”

Many estates don’t require probate, and if they do, it’s likely to cost less than 5% of the value of the estate. For many people, this area has created many disputes, particularly when the asset amount can be significant. In these circumstances, seeking legal advice is paramount from a reputable firm such as this Telford based solicitors, who focus on disputed probate. They have nearly seen a 50% increase in their disputed probate caseload: a clear indication of the growth.

Myth 7: “I’m Not Leaving Anything to My Spouse”

Some parents wish to leave everything to their children, especially if they have married multiple times. The survivor has to be fine with this agreement once their partner has died; otherwise they can go against the will and take assets anyway. He or she may be awarded 1/3 of the estate or may be allowed to live in the family home – it entirely depends on regional law. You can avoid this by going to a lawyer and getting your spouse to sign a waiver to give up their right to go against the will and claim assets.

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Will Estate House