COVID-19: How this Impacts Your Will and Estate Planning
What is a Will?
A Will is a legal document that will divide your assets between persons you nominate when you die. These people are generally a spouse, de-facto partner, child or any dependent, although theses are the most common people to leave your assets to, you are legally able leave your assets to anyone. Many individuals write their own Wills at home and while this might seem like an easy and cheap solution, it can unfortunately be very costly.
There are many factors within a Will that can be missed when completing it at home, these could induce tax burdens or the Will being held to not be binding, and therefore the persons assets are treated as though no such will existed. In order for a Will to be valid it must satisfy all three of the following requirements:
The Will is typed or written;
The will is executed by the individuals whose Will it is; and
The Will must be witnesses by two other individuals who are not benefitting from the Will, these individuals also need to sign the Will to signify they have witnessed the Will.
Can you change your will?
You can change your Will at any time, and such changes are highly encouraged when any major life choice changes for example you Marry or Divorce your partner, have a child, purchase property etc. When you want to make changes to your Will, this can be done by making a ‘Codicil’, being a document that allows you to legally amend your Will. This as well as a Will must be executed and witness by two people, or the Codicil will not be admitted, and the original Will, will prevail. Any such amendment can also be done by preparing a new Will, which supersedes any earlier wills.
What happens if you die without a Will?
If an individual dies without a Will, this is called ‘dying intestate’. When this occurs, a general distribution of your property and assets will be decided by the courts, in accordance with the rules of dying itestate. This generally includes dividing your estate up in sections to then pass onto your spouse and children. This may appear simple until you factor in the complexities that arise from children from other relationships or de-facto partners or you die with no relatives at all. This formula will only allow direct family members to inherit your assets, so if you do plan on providing for children to former partners, blended families, donating to charities or gifting your friends something, you must write a will.
Where should you keep your Will?
We advise you keep your Will in a safe place, ideally in a safe or even in safe custody at your Solicitor or local Law Firm. This is paramount, as, if the document cannot be found, it will be ineffective in expressing your wishes after you are gone. You should also advise you executors and close family where you Will is held, to allow them to obtain it after your passing.
How does COVID affect wills?
In the midst of a world pandemic, the reality of our mortality has never been more apart. Here at Wainwright Legal we are following all Government enforced pre-caution to stop the spread of COVID-19. This involves keeping a 1.5 metre distance between persons, and decreasing the amount of staff and clients within the office at any one time. If you or a loved one is considering updating or creating your Will you can enjoy the peace of mind Wainwright Legal will provide.