Do I Need a Will After Buying a House?

Purchasing a house is a significant milestone in life. It’s often seen as a symbol of stability and long-term investment. However, with this new responsibility, it’s essential to think about what happens to your property if something unexpected occurs. This is where writing a Will comes into play.

If you’re wondering whether you need a Will after buying a house, the answer is yes. In this article, we’ll explore why estate planning is crucial after purchasing a home, no matter what age you are.

In this advice article, we will cover:

• Understanding the importance of a Will
• What happens if you don’t have a Will
• The role of estate planning after purchasing property
• The process of writing a Will
• When to update a Will
• How a solicitor can help writing a Will

Understanding the importance of a Will

A Will is a legal document that outlines how your assets will be distributed after your death. It ensures that your property, including your newly purchased house, is passed on according to your wishes.

Without a Will, your estate will be distributed based on the rules of intestacy, which means you cannot control who inherits your estate. This can lead to potential conflicts among your loved ones.

A Will is particularly important to those who are in long term relationships but are unmarried, those with children, those with a tenancy in common agreement, or those who have sole names on the property deeds.

A Will also allows you to appoint guardians for children, meaning you can decide who looks after your children if the worse was to happen.

You can also make specific bequests of personal items, decide who will take care of any pets and even make arrangements and leave instructions for your funeral.

By having a Will in place, you can provide clear instructions that minimise confusion and help your family navigate the difficult period following your death.

A Will protects your investment

Your house is likely one of the most significant investments you’ll make in your lifetime. Having a Will ensures that this investment is protected and allocated according to your desires. Whether you want your house to go to a family member, a friend, or a charitable organisation, a Will ensures that your wishes are honoured. This proactive step can prevent your property from being sold or distributed against your intentions.

Additionally, a Will can specify how any outstanding mortgage on the property should be handled, providing financial clarity and security for your heirs. This foresight can help prevent financial strain and potential loss of the property due to unpaid debts.

What happens if you don’t have a Will?

Not having a Will can have significant legal implications. In the event of your death, without a Will, your estate may be subject to intestacy laws. These laws may distribute your assets in a way that differs from what you want.

For example, if you are separated but still married, anything you own will likely be inherited by your legal spouse. If you are not married and have children from a previous relationship, your children will  inherit. If you are unmarried and have no children, a distant relative could inherit your estate.

Dying without a Will, called dying intestate, can complicate the legal process for your loved ones. It can lead to lengthy probate proceedings and potential disputes among heirs. A well-drafted Will simplifies this process, providing clear instructions on how your estate, including your house, should be handled. This can significantly reduce the time and stress associated with settling your affairs.

I have purchased a property with my partner

When you purchase a property with a partner, it is crucial to discuss creating a Will together. By crafting a Joint Wills, you can ensure that your assets are distributed according to your wishes. Relying on the rules of intestacy may not protect your partner’s inheritance rights, so taking the necessary steps to create a Will is essential.

It is useful to consult an estate planning solicitor who can provide guidance on how your property ownership may affect your Will. Additionally, consider including a clause in your Will to address any future changes in your circumstances including marriage or sale and future purchases of property.

Tenants in Common

Tenancy in common is a legal arrangement in which two or more parties share ownership rights in property. Each independent owner may control an equal or different percentage of the total property.

If you own as tenants in common, your share will pass under your Will or Intestacy. This means that if you are not married, it could go to your children, or your parents, or to siblings rather than your partner.

If you are married, then your husband or wife will more than likely inherit your share on your intestacy.

If you have a Will, it will pass under the terms of the Will.

Joint Tenants

As joint tenants you and someone else has equal rights to the whole property.

If you own as joint tenants, then the house would automatically pass to the survivor. So, if you bought the property with your partner as Joint Tenants, then your share of the house would pass to them automatically.

The role of estate planning after purchasing property

Estate planning goes beyond just writing a Will. It encompasses a range of legal and financial strategies to manage your assets during your life and after your death. Comprehensive estate planning can provide peace of mind and financial security for you and your loved ones.

Trusts

A trust is an estate planning tool that allows you to transfer property into a trust while you’re still alive. This can help you avoid probate, reduce estate taxes, and provide more control over your assets. Your house can be included in a living trust, ensuring it is managed according to your wishes. Trusts offer flexibility and can be tailored to meet your specific needs and goals.

Trusts also allow for the seamless transfer of assets upon your death, which can be particularly beneficial for complex estates. They can provide ongoing management of assets for beneficiaries who may need assistance or protection.

Power of Attorney

A power of attorney is a legal document that grants someone the authority to make decisions on your behalf if you become incapacitated. This can include financial decisions, such as managing your house and other assets. Having a power of attorney in place ensures that your estate is managed if you’re unable to do so yourself. This legal tool can prevent the need for court-appointed guardianship, which can be time-consuming and restrictive.

The Process of writing a Will

To begin the process of writing a Will, you need to gather relevant information about your assets and beneficiaries. It’s important to consult with a solicitor to understand the process and ensure that your Will reflects your current circumstances and intentions.

Take the time to consider any specific clauses or alterations you wish to include, such as expressing your wishes regarding guardianship and dependants. By following these steps, you can start the process of creating a new Will.

When to update a Will

It’s crucial to update your Will regularly, especially after significant life events. Buying a house is one such event that warrants a review and possible update of your Will. Keeping your Will current ensures that it accurately reflects your wishes and any changes in your assets or family circumstances.

Changes in Family Structure

Marriage, divorce, the birth of a child, or the death of a loved one can all impact your estate plan. Ensure your Will reflects these changes to provide for your family according to your current situation. Regular updates can help prevent unintended consequences and ensure that your loved ones are properly cared for.

Consider also the impact of blended families, stepchildren, and other complex family dynamics. Clear and thoughtful estate planning can help address these unique situations and prevent conflicts.

Changes in Assets

Purchasing a house significantly changes your financial portfolio. Updating your Will to include this new asset ensures it is accounted for and distributed according to your wishes. Regularly reviewing your assets and updating your will can help maintain an accurate and effective estate plan.

Other changes in assets, such as acquiring new investments, selling property, or receiving an inheritance, should also prompt a review of your Will. Keeping your estate plan aligned with your current financial situation is essential.

How can a solicitor help with writing a Will?

An estate planning Solicitor can provide expert advice on the legal requirements and options for single and joint Wills, as well as discuss options for trusts, powers of attorney and inheritance tax planning.

Our Wills, Trusts & Probate team can also assist in reviewing and updating Wills as needed, considering changing family dynamics.

You can email Howells to make an appointment at [email protected]  or call us on 0114 2743481.