Why should I make a Will? asks Shelby Munn, wills, trusts and probate solicitor with Preston-based north west law firm Napthens

The untimely death of former One Direction star Liam Payne in October 2024 has brought to light a crucial issue in the world of wills and succession planning.

Payne passed away without making a Will, which means his £24.3million estate must now be dealt with in accordance with the UK’s intestacy rules.

Regardless of age, it is essential for individuals to consider and implement any appropriate estate planning during their lifetime to mitigate against any adverse consequences that might arise in relation to their estate after their death.

Shelby Munn, Wills, trusts and probate solicitor at Napthens, takes a look at why people are never too young to make a Will.

The importance of making a Will

Creating a Will allows an individual to ensure that their estate is distributed to the beneficiaries that they had intended, at the appropriate time. 

In Payne’s case his estate will now be administered by his former partner, Cheryl Cole, alongside music industry lawyer Richard Mark Bray. 

Payne’s eight-year-old son, Bear, will be due to receive the entirety of the estate, whereby the assets will be held in trust for him until he reaches the age of 18.

With a will in place, the complex administration of Payne’s estate could have been avoided.

A guide to creating a Will

1.    Appoint trusted individuals to manage your affairs after your death: These people would be your executors and trustees, and you can appoint whomever you wish, so long as they are over the age of 18. You should appoint people that you trust, and it is advisable to appoint individuals who are financially astute, given that there may be several complex tasks to be undertaken. 

2.    Give provision to anybody you intend, regardless of the legal status of your relationship: As unmarried partners are excluded from benefitting under the intestacy rules, creating a will is the most effective way of ensuring that your unmarried partner can benefit from your estate. The alternative may be an application to court, which could be expensive, and may not lead to a successful claim.

3.    Incorporate trust structures for the benefit of your intended beneficiaries: Where assets are left outright to beneficiaries, there is a considerable danger that it might not be an appropriate time for them to inherit on your death. This is commonly thought of in the context of minor beneficiaries, but also in the context of adult beneficiaries who may be experiencing financial difficulties, going through a divorce, or in receipt of means-tested benefits, when you pass away. By incorporating a discretionary trust within your will, this will allow your trustees to take stock of your beneficiaries’ circumstances at the date of your death before deciding if and when they receive any assets from your estate. 

4.    Mitigate against inheritance tax on your death: An adequately drafted will can ensure that your estate passes in the most tax efficient manner when you die. In the context of a married couple or a couple in a civil partnership, anything passing between spouses or civil partners is free of inheritance tax on the first death.

If you are married with children and you pass away without making a will, this can cause significantly adverse inheritance tax consequences for your estate, given that the surviving spouse’s entitlement would be limited under the intestacy rules. 

Furthermore, where you are passing on assets to beneficiaries who are already wealthy in their own right, this can exacerbate their own liability to inheritance tax.

By incorporating a discretionary trust within your will (under which no specific individual will be deemed to own the trust assets), this will avoid a further charge to inheritance tax on the death of that beneficiary.

Instead, assets held in a Discretionary Trust are taxed at a maximum of six per cent every ten years, rather than at a rate of 40 per cent on the death of a beneficiary.