Succession Law: The Importance of Having a Will

Although we might not like to think of it - death is a certain fate for us all. When we pass away - our families will go through a stressful and traumatic time as they come to terms with their loss. At the same time - there is a requirement for the administration of our estate - and this is usually bestowed upon a close relative or friend during this already painful time. However - a lack of foresight and planning can be catastrophic - leaving behind a tangle of assets and liabilities and possibly a hefty inheritance tax bill - depending on jurisdiction. On top of that - the absence of a will can mean a distribution of assets on the basis of standard 'default' rules - rather than on the basis of your individual preferences. In this article - we will look at some common provisions in the absence of any will - and aim to justify the benefits of making a comprehensive and clear will during your lifetime.

Most jurisdictions will bear some liability to tax on death. This can be a specific problem for the administrators of estates - usually close friends - who must ensure every known asset and liability is accounted for before making legacies and signing off the tax bill. A major problem comes with the personal liability attributed to the administrators - which means that should anything 'slip through the net' which is later discovered - there may be increased liability to tax. In practical terms - this could mean a surprise bill for several thousand which has already been distributed in legacies and for which the administrator must personally account. Providing for these outcomes in a will is one of the best ways of avoiding this hassle and stress - and it can also be the best way to ensure all assets and liabilities are uncovered. By drafting an effective will - you can be sure your loved ones don't face financial hardship after you're gone.

In the absence of a will providing specifically for the administration of a deceased's estate - it is up to the laws of intestacy to determine what happens to the entirety of our worldly possessions. Unfortunately - this doesn't usually correspond with the way we'd like things to turn out. For example - in a number of jurisdictions there are automatic provisions for spouses and kids - meaning you can disinherit - even with a will. There is also usually a default order of preference of who gets what and how much they get - which doesn't necessarily match your favourite relatives - or correspond to actual family set ups. In fact - cohabiters might run into problems getting anything - including the house in which they live without proper testamentary provisions in their favour.

As you can see there are a number of obvious benefits to drafting a will during your lifetime. Sadly - many thousands of people die each year without making these provisions - and it really is a real headache for their friends and relatives who are left with the burden of a fair settlement. Intestacy causes hostility and stress - which can be readily avoided by just simply making a written will. If you haven't made a will - it is probably a good idea to make a appointment as soon as is convenient with a legal adviser to do so - to ensure your family are provided for as you would intend and to promote a favourable distribution of your estate on death.

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