Why keeping an up-to-date will is crucial for your financial wellbeing

Amid the demands of everyday life, writing or updating your will may be low on your to-do list. If so, you’re not alone. Research by the charity Will Aid has revealed that 67% of UK adults either don’t have a will or have one that’s out of date.

There are many reasons why you might put off this important task. For a start, it’s not pleasant to think about a time when you won’t be around. Moreover, if you’re relatively young and fit, writing or updating your will may not seem like a pressing need.

Perhaps planning how to pass on your wealth feels unnecessary if you don’t have children. According to the National Wills Report 2024, only 39% of people without children have a will, compared to 61% of those with children.

Whatever the reason, if you don’t have an up-to-date, professionally written will, now is an ideal time to get one. November is Will Aid month, when participating solicitors waive their fee for writing a basic will. Instead, they invite you to make a voluntary donation to Will Aid.

Read on to find out why keeping an up-to-date will is crucial for your financial wellbeing, whatever your age and circumstances.

Having an up-to-date will puts you in control of your wealth

Creating and regularly updating your will is an essential part of your financial plan for several reasons.

Your estate will be passed on in line with your wishes

Writing a will allows you to set out what happens to your money, possessions, and property after you die.

Without a will, your estate will be distributed according to the rules of intestacy. In other words, the courts will decide how your assets are divided, which may not reflect your wishes. For example, your unmarried partner or stepchildren may be excluded.

If you have a will, but it’s outdated, your assets might pass to unintended heirs, such as an ex-partner or someone you no longer wish to inherit. The National Wills Report 2024 found that 47% of over-55s had not updated their wills, leaving them exposed to this risk.

You can ensure that someone you trust oversees your estate

Choosing one or more individuals who you’d like to act as “executors” is a crucial part of the will-writing process.

An executor is responsible for winding up your estate according to the directions you leave in your will. It’s an important role, so you’ll want to pick someone you know well and trust completely.

If you don’t nominate an executor, the court will do so. This could mean that your estate is overseen by someone you wouldn’t have chosen.

Equally, if you haven’t updated your will for some time, your named executor or executors may no longer reflect your wishes. For example, you might have named a family member or partner who you’re no longer on good terms with.

You could reduce the Inheritance Tax due on your estate

Your beneficiaries could face an Inheritance Tax (IHT) bill if the value of your estate exceeds certain thresholds. In 2025/26, the standard rate of IHT is 40%, which is payable on the amount of your estate that’s above the tax-free threshold.

A properly structured will could include gifts, trusts, and charitable donations to reduce a potential IHT bill. For example, if you leave 10% or more of the net value of your assets to charity in your will, your estate might benefit from a reduced IHT rate of 36% (2025/26).

However, tax rules can and do change. Failing to update your will could mean that your wealth isn’t passed on as tax-efficiently as it could be.

You can ensure that your dependants and pets are provided for financially

As well as choosing a guardian for your children or pets, you can make provisions for their financial future in your will.

This might include setting up a trust for your children’s education or ensuring that a certain amount is provided for their care each year.

Without an up-to-date will, any stepchildren you have may not benefit from your estate as you’d like them to. This is because UK law states that only spouses, civil partners, and blood relatives can automatically inherit if there is no valid will.

If you have stepchildren who you’d like to leave an inheritance to, you’ll need to include them in your will.

Failing to do so could increase the risk of family disagreements and costly probate litigation.

6 signs it might be time to update your will

The passage of time and certain events might alter your financial circumstances and your wishes. As such, it’s crucial to review and update your will to ensure that it reflects your current preferences.

Here are six reasons why you might want to update your will:

1. Marriage or civil partnership – In England, Wales, and Northern Ireland, marriage or civil partnership automatically revokes a will unless you make it clear that you do not want this to happen. If you fail to create a new will, any children you have from previous relationships could be unintentionally excluded from inheriting – this is known as “sideways disinheritance”.
2. Divorce or dissolution of a civil partnership – Unlike marriage, divorce or dissolution does not automatically invalidate your will. However, your ex-spouse or civil partner will be treated as though they had died once the divorce or dissolution is legally finalised. This means that they will be removed as executor (if you nominated them for this role) and any assets will pass to the next named beneficiary. If this is not your intention or you want to name a new primary beneficiary and executor, you’ll need to write a new will.
3. A beneficiary or executor dies – If this happens, it’s crucial to amend your will to avoid disputes and ensure your estate passes to the beneficiaries of your choice.
4. You have children or grandchildren – If your family grows, you’ll likely want to ensure that all new family members are included in your will. You can often make small changes to your will with a codicil, rather than rewriting the entire document.
5. Legislative changes occur – If the government changes the rules on IHT, trusts, or property rights, your existing will may no longer have the effect you intended. It’s worth seeking professional advice to stay on top of any such changes.
6. It’s been five years since you last reviewed your will – Even if you experience no significant life events and there are no relevant changes to the law, it’s wise to review your will at least every five years to ensure it’s fit for purpose.

We can help you pass on your wealth tax-efficiently and avoid common pitfalls

It’s generally advisable to use a solicitor to write your will. This ensures it reflects your wishes and complies with current rules and regulations, reducing the risk of disputes.

A financial planner can also play a valuable role in helping you write a will that protects your financial wellbeing and that of your intended beneficiaries.

At Lloyd O’Sullivan, our experienced team can advise you on how best to structure your assets for maximum tax efficiency and support you in incorporating your will into your wider estate plan.

To find out more about how we can help, please get in touch by emailing info@lloydosullivan.co.uk or call 020 8941 9779.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning, tax planning, trusts, or will writing.