By Bola Anike – One thing is guaranteed in life and that is that we will all die one day and not making a will can lead to several potential consequences, both legal and personal, for our estate and loved ones. These consequences vary depending on the laws of different countries, but the outcomes are similar. Family falls out over money, large legal bills on the estate etc.
If you die without a will, your estate is distributed according to the intestacy laws of the UK or your own country. These laws often follow a strict formula which may not reflect your personal wishes or the unique needs of your family. It is important to consult a good wills and probate solicitor to help you draft your will. And more importantly, talk to your family about the content of the will so that no one is surprised by its content after you are gone.
Family Disputes
If you don’t have a will, there may be confusion or disagreements among surviving family members about how your estate should be divided leading to family disputes. This can lead to lengthy and costly legal battles, potentially damaging relationships within your family. Legal experts have reported a huge rise in inheritance disputes in the UK which they believe has been triggered by factors including the rise in property value, cost of living crisis etc. Data shows a 34 per cent increase over five years, between 2017 and 2022, in people challenging the wills of deceased relatives to get what they argue is their fair share of the estate according to Birmingham Live.
Guardian for Minor Children
If you have minor children and don’t designate a guardian in a will, the courts will decide who will raise them. This could result in someone you wouldn’t have chosen taking care of your children. You also will then lose control on how you want your children to be raised including in what religion.
Impact on Non-traditional Families
According to BusinessWeek.Com, 80% of households in the U.S. have a non-traditional family structure so if you are one of these families (e.g unmarried partners, blended families, or same-sex relationships), intestacy laws might not recognize your partner or stepchildren as beneficiaries. This can leave them without any legal claim to your estate.
Unintended Beneficiaries
Your estate may end up with unintended beneficiaries, such as distant relatives, estranged family members, or even the state. If you have specific people, friends, or charities you want to support, those wishes won’t be honoured without a will.
Higher Legal and Administrative Costs
Settling an estate without a will is usually more complicated and time-consuming, leading to higher legal fees and administrative costs.
The probate process can take much longer without a will. Your assets might be tied up in legal proceedings, causing delays in financial support for your dependents or family members. All of these reduce the overall value of the estate and delays the distribution of assets to beneficiaries.
Business Interests May Suffer
If you own a business and don’t have a succession plan in your will, it can lead to uncertainty or conflicts among surviving partners or shareholders. The business might even be forced to shut down or be sold all the years of hard work lost.
No Control Over Funeral Arrangements
Through your will, you can specify your preferences for funeral arrangements and final rites. Without a will, these decisions are made by your next of kin, and their choices might not align with your personal wishes and can also create conflicts and even more family disputes with each person trying to second guess what you would have wanted.
Charitable Donations Are Lost
Many charities depend and rely on people leaving donations to them in their wills and any charitable intentions you have will go unfulfilled without a will. If you intended to donate a portion of your estate to causes you care about, the absence of a will means those donations won’t happen.
It is therefore of the utmost importance to Create a will to ensure that your assets are distributed according to your wishes, reduces the burden on your loved ones, and provides clarity and security. If you haven’t made one yet, it’s advisable to consult an estate planner or lawyer.
Bola Anike is based in the UK and works at Elmgrove Financial Services Limited
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