The products featured in this article have been independently selected by specialist journalists at This is Money. If you open an account through links marked with an asterisk, This is Money earns an affiliate commission. We will not allow this to affect our editorial independence.
Half of British adults don’t have a will, according to new research, and many believe they don’t have the necessary wealth to deserve to make one.
The survey by pension and insurance company Canada Life found that more than two-fifths of Britons are not concerned about not having a will, while almost one in six have no intention of making one in the future.
People generally become more concerned as they get older, but it turned out that one in three adults aged 55 and over still hadn’t made a will.
A quarter of Britons who don’t have a will don’t think they have enough wealth to make one.
When asked why they hadn’t, a quarter of people said they felt they didn’t have enough wealth or assets, while nearly one in five said they thought their loved ones would automatically inherit their wealth.
Other popular reasons for not making a will included not being able to pay to make one, believing they have enough time to make one, not knowing how to write one, and not wanting to think or talk about death.
We look at why making a will is important, how you do it and what it should contain.
Why do you need to make a will?
Making a will isn’t just about choosing who gets a portion of your estate after you die.
For one thing, dying without a will is likely to leave a ton of red tape for loved ones as they try to find out where your savings, investments, and loans are.
And the common assumption that everything automatically passes to loved ones is not always correct.
Last wishes: Having a will is the best way to have a say in what happens when you die
Many couples forget that under current succession laws in England and Wales, an unmarried cohabitant has no automatic rights under succession rules. A valid will is essential to ensure that the assets pass to the surviving partner as they are intended.
A will is also an invaluable tool for single parents with small children to ensure that those children are taken care of by the people they trust to care for them.
Without these provisions in a will, it is possible for the courts to decide who should have parental responsibility.
Stacey Love, Technical Manager for Taxes, Trusts and Wealth Planning at Canada Life, says: “It’s a shame that people still believe that making a will is a challenging process.
“At any age, dying without a valid will can be a huge burden for your loved ones at a time when they may already be vulnerable and struggling to cope.”
Since the tax-free allowance was raised to £325,000 in 2009, the amount of inheritance tax the government collects has more than doubled
“Even when you’re young, making, signing, and testifying a will should be on your bucket list, even if you don’t think you have any real wealth to pass on,” adds Love.
“Even digital assets like social media accounts and crypto can have value – after all, data is the new gold.”
For many people, writing a will can also be wise if their estate could be subject to inheritance tax.
Assets transferred to a spouse upon death do not owe any estate tax, but if they pass it on to someone else, they eat away at their IHT-free allowance, above which there is 40 percent tax.
At the moment, anyone can pass £325,000 in cash and assets tax-free.
Married couples and registered partners can pass their unused allowance on to their surviving partner, allowing the IHT-free amount to be doubled to £650,000.
If they give away their main residence to their children (including adopted or foster children, or grandchildren), this threshold can rise to £500,000.
So for a married couple with children, it is possible to pass on a total of £1 million.
Where to make a will
This will depend on personal preference, how much someone is willing to spend and the complexity of their financial affairs.
Many charities offer a ‘free’ service – although that usually comes with an expectation of leaving a legacy to the charity.
Some retailers also sell “will packs” that allow people to do it themselves – but they still have to have the document attested when they sign it.
Most attorneys offer cheap deals for drafting their wills, and their employer may offer a third party will for their employees.
There are also online want companies such as Parting* which provide a faster, easier and more cost-effective way to divide an estate than the traditional process.
Online service Farewill is a relatively inexpensive way for the British to draw up a will online
Farewill has a 4.9 star rating on Trustpilot from over 13,000 reviews.
It costs £90 to create an online will, or £140 for couples. Alternatively, it’s possible to do this over the phone for £240, or for £380 as a couple.
The upfront cost includes unlimited changes for a year, which means it’s possible to update it at any time in the first 12 months.
After that, it’s possible to continue making updates for just £10 a year.
What should be included in a will?
A will should list all people or charities to whom money or property will be left after death. It should also make it clear who will look after children under 18.
It also appoints executors. These are the people who arrange the estate and carry out the wishes of the will.
It also typically includes a register of assets, which lists all bank accounts, investments, pensions, and insurance policies, for example, to prevent families from having to struggle to untangle someone’s finances.
Listing your belongings ensures that everything is easy to find when you are away
How will my relatives find out about my will after I pass away?
If you have made a will, it is wise to tell a close friend or relative where to find it.
Those who use an attorney to draft a will should also make sure they and your executors have copies.
It is also possible to register a will through a national will registration company such as Security. For anyone who can’t find a loved one’s original will, these are good places to start.
“Once you complete your will, don’t sit back and forget it,” Love adds. “Talk to your family, let them know where it is kept.
“Also, be sure to review it every few years — family circumstances change over time and you should make sure your will evolves, too.
“It’s human nature not to think about death, but writing a will can be a huge burden off your shoulders and those of your loved one.
“Don’t be afraid to talk about it openly with those you want to leave a legacy to.
‘A professional financial or legal adviser is also invaluable for independent advice and guidance.’
Some links in this article may be affiliate links. If you click on it, we may earn a small commission. That helps us fund This Is Money and use it for free. We do not write articles to promote products. We do not allow any commercial relationship to compromise our editorial independence.