When does a free Will cost a fortune?

What is free Wills month?

Free Wills Month offers a free Will, drafted by a qualified solicitor, to people aged 55 and older. The scheme takes place twice a year, in March and October.

The scheme is run by a group of charities in the hope that you will make a gift to them in your Will. Whilst there is no requirement that you leave a gift to charity in your free Will, gifts in Wills provide important income for charities to be able to continue their work, so the scheme is designed to encourage charitable giving in simple estates.

There are real dangers in drafting your own Will, as the law has strict requirements around what makes a valid Will, so it is a good opportunity for those who may not otherwise be able to afford one, to get a professionally drafted Will.

When isn’t a free Will appropriate?

The scheme is aimed at those with a modest estate and straightforward intentions for what should happen after they die, and it is particularly intended for people who are leaving a gift to charity (subject to the below warning).

However, you shouldn’t rush into taking advantage of the scheme without asking yourself whether you should be seeking further bespoke, legal advice. There are circumstances where a free Will may not be suitable and you need more detailed advice tailored to your circumstances. These include:

• You have re-married and want to ensure your assets pass to your children from a previous marriage or relationship. Blended families are common, and parents often want to ensure their own children ultimately benefit from their estate. You can use a trust to ensure your spouse (or partner) is looked after, but that your assets ultimately pass to your children. For example, you can use a trust to allow your spouse to continue to live in your shared home, but on their death (or other circumstances set out in the Will, such as remarriage), the house passes to your children. It is important that these trusts are properly set up in line with your wishes and that you understand the possible tax and other implications.
• Where you are making a gift to charity to take advantage of the inheritance tax (‘IHT’) benefits. Under current legislation, any gifts to a qualifying charitable body are exempt from IHT. If the gift is worth at least 10% of the total value of your taxable estate, a special reduced rate of IHT (36% rather than the usual rate of 40%) applies to the remainder of the estate. The rules around this can be complex, so you should seek specific advice on this point if it is something you hope to take advantage of.
• Your estate includes business or agricultural assets. The law provides for relief from IHT where you own business or agricultural assets on your death. The application os these reliefs is not always straightforward, and there are exceptions where they do not apply. Seeking specialist advice will ensure your Will is set up to take advantage of these reliefs where possible, and to minimise any IHT that might otherwise be payable by your estate.
• You have an estate that may be subject to IHT, or you would like estate planning advice. If you believe that your estate may be taxable to IHT (for example, where you have assets in excess of the tax-free allowance of £325,000), there may be exemptions and reliefs that can minimise the tax bill. Specialist estate planning advice can help you take advantage of these, and ensure you are maximising the funds that are left for your beneficiaries. This is also important if you have made sizeable gifts in your lifetime, set up a trust or benefit from a trust or if you own any foreign property.

Free Wills Month is a great scheme, but you must be aware of its limitations when considering your own Will and estate planning. This is a non-exhaustive list of examples where a free Will may not be suitable for your needs, and where you may need further estate planning advice.

Whilst seeking tailored advice and having a Will drafted outside of the scheme may cost more in the short term, it may save you and your estate much more money in the future, whether that be in IHT savings or in dealing with complications arising from a Will that was not suitable for your circumstances.

Our team of experts are experienced in providing estate planning advice, and would be pleased to assist you in drafting or updating your Will.