The BBC recently reported that Nelson Mandela left an estate worth £2.5million (46 million rand) including properties, savings and the royalties from his recent book. It is claimed that Mandela’s Will is forty pages long and although there is certainly no requirement for a Will to be so exhaustive, the importance of putting a Will in place is apparent regardless of the value of your estate.
In writing a Will, Mandela was able to leave cash sums to his family members, pass money to causes he supported during his life and to set up a family Trust. The disagreements among members of Mandela’s family have been well documented and it seems that his Will has provided them all with guidance and certainty as to how to administer his estate now that he is gone.
Clients often suggest that they have already discussed how they wish their estate will be administered with family members and that they do not need to put this down in writing. However, people deal with the death of a family member differently as it is a difficult time for those you have left behind.
By setting out all your wishes as to who you want your estate to pass to, you can provide clarity and reassurance for family members. A Will provides you with an opportunity to appoint those who you trust to act as your Executors, leave cash legacies to friends, family members and charities and leave your personal possessions and remainder of your estate to who you wish. You also have the chance to narrate any funeral instructions and to set out in writing if you wish to leave your body to science or if you are an organ donor etc. When you put a Will in place, it is also a good time to look at your affairs generally. There may be opportunities to carry out Inheritance Tax planning by maximising reliefs and exemptions.
In the event that you don’t have a Will in place at the time of your death, your estate is administered according to the Law of Intestate Succession. Although your spouse/civil partner will have certain rights, they will not automatically inherit your whole estate. Children also have rights to inherit but cohabitants, friends and remoter relatives do not. When you do not have a Will you lose the choice of who you wish to appoint as your Executors and who will benefit from your estate and this could be different to those who you had envisaged would be appointed or would benefit.
Whether your estate is complex or straightforward, it is always advisable to make a Will.
