New research has found that large numbers of Britons don’t fully understand how wills work.
For people estate planning in Cheshire and beyond, it is therefore important to be fully informed about how the laws of succession work in the UK.
The study, published by financial services company Canada Life, interviewed around 2,000 adults across the UK and identified around 38% experiencing some degree of confusion when estate planning, writing a will or comprehending the rules around succession. This group of respondents mistakenly thought they could avoid probate if their bequeathed assets were inherited by their spouses.
Another 33% assumed that in the absence of a will, their assets would automatically pass across to a loved one. A further 17% mistakenly thought that it was not necessary to update a will after marriage or remarriage, while 16% believed a cohabiting partner would automatically inherit the estate, even if not married.
According to tax, trusts and estate planning expert Liz Hardie, people should plug any gaps in their knowledge by regularly updating their will where applicable, in order to avoid pitfalls and ensure that their assets were allocated as desired. If you pass away intestate, this means a valid will has not been left in place, whereupon assets might not be distributed as anticipated, and carved up in line with the laws of succession.
Hardie added that incorrect assumptions could lead to loved ones experiencing delays, disputes and prolonged probate, with the additional prospect of higher inheritance tax bills. As such, it is crucial to be open and transparent with beneficiaries.
