As financial advisers, we often encourage clients to think beyond saving and investing for the future. A part of financial planning that is often overlooked is creating and discussing your will. For some people, this is an uncomfortable topic but having a clear will and openly discussing its contents with loved ones is essential to ensure your wishes are followed and disputes are avoided.
One of the main reasons to openly discuss your will is to avoid misunderstandings or family disputes after you’re gone. Sometimes when a will is read for the first time, after someone has passed away, can come as a shock to some family members, especially if they had different expectations. Having clear communication now can prevent future friction and help your loved ones support each other instead of dealing with conflict.
If you have specific wishes regarding who inherits assets such as property, sentimental items or investments then it is a good idea to explain why you’ve made these choices. This avoids loved ones having questions when you are gone.
Making sure that your wishes are carried out in full is important so it is essential to discuss your will with your executor or close family, so they know the reasoning behind your choices. For example, if you have set aside money for grandchildren or chosen to make charitable donations, sharing these details can offer clarity and reduce the chance of disputes or confusion.
Another reason to discuss the contents of your will is important especially if you have vulnerable beneficiaries such as young children, elderly parents or relatives with special needs. Your will should include provisions to safeguard their future. This could involve setting up trusts, appointing guardians, or leaving specific instructions regarding their care. If you are appointing guardians or trustees, it is essential to communicate with them to ensure they’re comfortable with their responsibilities.
Inheritance tax (IHT) can significantly reduce the value of the estate you leave behind. Having a conversation with a financial adviser, like us, can help identify ways to minimise the tax burden. For example, gifting assets during your lifetime, leaving money to charity or setting up trusts can all help reduce your IHT liability. If you discuss your will and overall estate, you will ensure that your family will understand how to navigate the tax matters and avoid any complications.
Finally, it is always advised to discuss your will with your family so that it offers peace of mind for both you and your loved ones. Knowing that your affairs are in order and that your family is prepared can provide great relief, especially during what will be an emotional time.
While it might feel uncomfortable to discuss the contents of your will, it is an essential part of financial planning. It can prevent potential conflicts and ensure your wishes are carried out.
We would highly recommend speaking with Gill Werret at AFPS to discuss your will and Power of Attorney.
If you would like to discuss your financial planning in more depth, then please get in touch.
*The Financial Conduct Authority does not regulate Wills, Power of Attorneys, Trusts, Inheritance tax and estate planning.