Inheritance tax warning issued to 40 million Britons lacking one ‘vital’ document | Personal Finance | Finance
More than 40 million Britons are estimated to have not written a Will, new research by the Co-op shows.
The member-owned organisation found that nearly a fifth (19%) believe that they simply do not need one.
More than half (51%) of those without a Will admitted that they haven’t got around to writing one, whilst one in eight (12%) say that it’s something they simply don’t want to think about.
James Antoniou, head of estate planning at Co-op Legal Services, commented: “Of course, when it comes to estate planning, the impact that our death would have on our loved ones can be a difficult subject to broach.
“Our research suggests that a large proportion of the population has not put a legally valid Will in place. However, this is an essential part of planning for the inevitable and is something that we should all take the time to do.”
Wills are a crucial legal document offering individuals peace of mind that their wishes will be legally recognised and that vital assets, such as property and savings, can be protected for their loved ones after they’ve gone.
The Co-op Legal Services team pointed out that if a loved one dies without recording their wishes, the rules of intestacy will set out how the estate will be distributed rather than in the way they may have wanted.
With the average value of an estate being administered by Co-op Legal Services being over £300,000, it warned there could be “an awful lot at stake financially” if a loved one were to die without having a legally valid Will in place.
Additionally, writing a will is an essential tool for inheritance tax planning, as it allows people to structure their estate in a way that maximises available allowances and reduces the tax burden on beneficiaries.
Mr Antoniou continued: “A will enables you to plan and record your wishes so that they can be legally recognised, as well as take advice from a regulated provider so that you’re making informed decisions.
“Just these two steps can significantly mitigate complications arising and potentially help the probate process to run more smoothly for your loved ones.”
