Information a solicitor needs in order to prepare a will.
Our solicitors specialise in probate and wills, and offer a free consultation service. Call us on 0333 888 0439 or email us at info@probateandwillssolicitors.co.uk
We are often asked, ‘What information does a solicitor need to prepare a will?’ Here is a brief summary of what is required.
When you visit a solicitor to discuss your will, you are likely to be asked for certain personal financial information. We promise this is not because we are nosey. Providing us with your personal financial information is essential to enable us to draft your will and give you guidance on estate planning. This is why.
1. Not all assets pass in accordance with the terms of a will
Joint assets pass to the joint account holder or co owner by the rules of survivorship, and therefore do not pass in accordance with your will. Therefore, if you write a will and request that a joint asset passes to someone other than the co owner, this gift will not work.
Likewise, some pensions and life insurance policies may not pass in accordance with your will and instead will pass to those who you have been nominated with the pension or policy provider. This is also a useful way to mitigate inheritance tax as any funds from a pension or policy will pass to those beneficiaries directly, and will not be included in your estate for inheritance tax purposes
2. Legacies
It may seem obvious, but it is important to be sure that you have sufficient funds to honour a legacy in a will. So, if you advise us that you wish to make gifts of, say, £100,000 but you only have £50,000 in your estate, we will advise you that you do not have enough money to give effect to such legacies.
Likewise, if you have £20,000 in cash and a house worth £300,000, but wish to make a gift of £50,000 to someone, we will need to advise that the house will have to be sold on your death to pay the legacy, and ensure that this does not adversely affect your other wishes.
3. Inheritance Tax
You may require specialist legal advice on inheritance tax (IHT). This will include not only your inheritance tax liability but also how the IHT will be paid.
Inheritance Tax (or the first instalment of inheritance tax) will need to be paid before your executors obtain the Grant of Probate. The Grant of Probate is then needed to sell assets to release the required cash. Therefore, if you do not have enough funds in liquid assets (eg money in a bank account) to pay the tax bill, it can cause issues for your executors. They may need to take out a loan or use their own personal finances to fund your tax bill. Our lawyers can provide guidance in respect of this if they know what assets you have in your estate.
4. Foreign assets
If you have an asset outside England and Wales, it may be advisable to do a separate will to deal with that asset. If so, the will that our lawyers prepare shall be limited to your assets in this jurisdiction. We also need to ensure that your foreign will and your will in England and Wales do not inadvertently revoke each other.
5. Business assets
We can advise on how your business may continue after your death, or be wound up. The type of business you have (eg limited company, partnership, sole trader) may determine what happens to it when you die, and our lawyers can advise on this.
Contact us for a free consultation
Although the information we need is personal to you, there are very important reasons for asking these questions. As you will see from the explanation we have given, if we are in full possession of all your financial details we will be in a better position to ensure you avoid potential pitfalls. This in turn could save your executors a lot of time and money in the long run.
