Every adult with a QROPS (Qualifying Recognised Overseas Pension Scheme) has the right to select who they wish to bequeath their assets and possessions upon the event of their death. However, about half of the population isn’t likely to create a will prior to their death in spite of the clear advantages that drafting a last will and testament that are continually exhibited.
Below are 10 reasons why it’s important for you to create a will when you have a QROPS!
1. Intestacy Rules – If you pass away and you’ve never created a will, the law is that the government will choose how your estate is distributed to it’s benefactors. Your desires will be of no consequence, as there is no legal written document exhibiting your wishes about how you wished for your assets and possessions to be distributed upon your death, even if you verbally promised certain assets or possessions to a friend, relative, or loved one in good faith.
2. Absence of Relatives – If you are without blood or legal relatives, all your assets and possessions will be given to the government if you don’t have any kind of will, even if your wishes were very different from these circumstances.
3. Inheritance Tax – Drafting a will permits you to considerably reduce tax amounts paid on inheritances that result from your estate. Taxes may even be reduced to nothing when you create an applicable will to be applied in the event of your death.
4. Legal Guardians – If you’re a parent, a will permits you to appoint who you’d prefer to raise your children in the event of your death. If you are without a will, it will be up to the government to decide who will raise your children based on their own discretion. They might not make the same decision you would have made, which means your children may be raised by someone who you would prefer didn’t raise them or who you didn’t want to care for them.
5. Trust Funds – If you’re a parent with a QROPS and you die, your children’s financial futures can be both bright and secure, provided they have a trust fund you’ve arranged for to be funded with their inheritance, provided you meet an untimely death. This also ensures that your children gain access to their funds when they reach a particular age, which you can choose. You can deem when your children gain access to their trust fund, even if it’s after they reach majority when you feel they can responsibly manage their own money.
6. Romantic or Domestic Partners – If you’re in a domestic or romantic relationship that isn’t legally recognized as a marriage or civil partnership, your partner has far fewer rights to your estate upon your death and could end up with much less than you wish or even absolutely nothing in the event of your death if you haven’t designated your wishes concerning your partner and the distribution of your assets and possessions upon your death where your partner is concerned if you haven’t clearly stipulated your desires in a legal will.
7. Charitable Considerations – It’s not uncommon for people to leave a part or even the entirety of their possessions and assets to a charity. When you clearly exhibit these desires in your will, your donation will be exempt from inheritance tax.
8. Cost-Effectiveness – Creating a will is very likely less expensive than you may expect it to be. However, the price of effectively and efficiently allocating your assets and possessions that are part of your estate in the event that you die without the benefit of a will can surely prove to be a painstaking task for your family, friends, and loved ones who you leave behind.
9. Funeral Arrangements – Funerals can be costly, and if your assets are frozen, as they are held subject to legal considerations and can’t be utilized for your funeral expenses, because you died without enacting a will, your relatives, friends, and loved ones may have difficulty funding your memorial services. If you prepare for your funeral before you die with a will, your assets will be available much more quickly than if you hadn’t the benefit of a will, which allows for the designation of funds to satisfy your funeral arrangements.
10. Ease Your Loved One’s Distress – It’s quite awful to not only lose a loved one, but to have to debate, discuss, and argue about the distribution of their possessions and assets after their death without the benefit of a will. If you’ve created a will, a solicitor won’t distribute your assets to the appropriate people or charities, as it will already provide for designation prior to your death.
If you’re now convinced to go out and create your will, locating a family solicitor to assist you is the next logical step. A professional probate and wills solicitor can ensure your desires are carried out upon your death.