What happens if you don't make a will?

We’re all aware of what a will is. And it’s pretty likely that we would like to be the ones who decide how our savings, homes and possession get shared out when we die. So why, then, do so many of us leave no will behind to guide our executors and benefit our loved ones?

According to recent statistics, 61% of people in Britain have not made a will, including 22% of people aged 55-64.

Each year thousands of pounds are reclaimed by banks, after decades of sitting in a bank, because their ancestors did not make wills, or had bank accounts that they didn’t tell anyone about. The rules of intestacy fail to adequately protect civil and common-law partners, while even spouses get a raw deal.

It’s not surprising that many of us defer writing a will. It’s scary to think about death, while the carving up of our estates can raise taxing questions about who gets what. But failing to do so can be disastrous.

Loss of control

We can’t decide when we pass away, so isn’t it only fair that we exercise control where we can?

Wills offer us the ability to pass out what we own to who we love. It’s a final act of benevolence and, depending on how much we hand down, it can be a life changing event for the beneficiaries.

Just as, in life, we should grant lasting power of attorney to a trusted relative or friend to make sure we can dictate how we are cared for and how our financial affairs are managed in the event of physical or mental deterioration, writing a will makes sure death, and the fate of our hard-earned savings, property and possessions are dealt with on our terms.

Wasted time and effort

It’s a well-worn phrase, but you can’t take your money with you. But shouldn’t your hard work count for something?

Dying without a will can lead to your loved ones being unable to get the benefit of your savings. You would be surprised by how many accounts go undeclared, so while spouses, children or grandchildren might struggle to make ends meet – especially nowadays – the bank can quietly just take money you have deposited with them.

Make sure those you want to benefit from your assets are aware of what assets you own, even if you don’t even write a will.

Family disagreements

It is an extremely difficult time for families when a loved one has died. The heightened emotion is one reason why inheritances lead to so much damage between family members.

If you die intestate, you can fuel these issues by not making it clear how you wish your estate to be shared out and – most importantly – why.

But don’t just let a legal document do your talking. Speak to those you intend to pass assets onto and those who you don’t while you can. Explain your thoughts and reasons. It might be a very difficult topic to discuss, but the shock people feel when they find they have inherited little or nothing can cause them to do things they regret.

And also make sure you go through the whole process of  how to administer your will while you can. Being an executor is a serious responsibility at the best of times, but spouses, siblings and children will find it even tougher when also dealing with emotional loss. From probate registry to inheritance tax, make sure they are clear on what they need to do.

Rules of intestacy

Not surprisingly, a whole set of rules is in place to deal with instances where no will has been made. But the rules of intestacy are by no means perfect.

Spouses are only guaranteed to get up to £250,000 while it is very common for the remaining partner to receive everything in wills.

And then there are civil partner and common-law spouses, who are guaranteed no protection under the out-dated laws. Writing a will is the only way to guarantee they receive what you want.