Different types of wills
A will is a legal document which states what we wish to happen with our estate when we pass away. But when we think about leaving assets to our loved ones, what are the different types of wills to consider?
In this article we’ll explain the types of wills available in the UK, though it’s worth noting that different rules apply in Scotland and Northern Ireland.
Every family is different, with various factors at play – from the marital status of the parents to the number of children and other dependants. So unsurprisingly, there are different types of will to reflect the fact that no two families are the same.
There are significant consequences to dying without a will, as your property and assets would be distributed according to a legal default known as intestacy. So if you’re thinking of getting some protection for your loved ones, below are the various types of will (available in England and Wales) to consider.
Single will
A single will is the most common type of will. It’s used by individuals to outline their final wishes, such as who they’d like assets to be passed onto; the plan for the funeral; and any arrangements for looking after children under 18.
Single wills are often used by people who aren’t in a relationship. However, there are circumstances where they’re arranged by people who are married or co-habiting with a partner. For example, you might use a single will if the following applies to you:
- You’re married but have children from a previous relationship
- You have different wishes to your partner
- Your spouse already has a will.
Mirror wills
Mirror wills are used when a couple has very similar ideas about what their will should contain. These types of will are two separate legal documents which include almost identical information.
When one partner dies, the estate automatically passes to the surviving partner. After the second death, the estate is distributed according to the wishes detailed in the mirror will.
These types of will can be changed without the other person knowing, so they rely on a high degree of trust between partners.
Trust wills
Some people choose to set up a trust as part of their will. You can also write your life insurance policy ‘in trust’ .
Trust wills are often used for a variety of reasons, such as:
- To help with Inheritance Tax planning.
- To make specific provisions for a loved one, such as adult children with disabilities.
- To protect a property’s value for future generations.
But what are the different types of trust will?
By speaking to a professional, you can decide which type of will is the best option for you.
While our lives can be unpredictable, there are different stages in life which may inform the type of will you need. Here are some questions to consider:
What is your relationship status?
If you’re married, in a civil partnership or with a long-term partner, you might want to take out a mirror will. But if you’re not in a relationship, or you have different wishes to your partner, a single will may give you the individually tailored solution you desire.
What is your budget?
If you’re budget-conscious, you might be able to save money with a mirror will compared to writing two single wills. However, the cost of a will isn’t just determined by the ‘type’ of will; for example, some charities may be able to provide will services at a reduced rate.
What are your family dynamics?
Since mirror wills can be changed without the other partner knowing, they may be less appropriate when family dynamics are more complicated. For example, could the presence of children from a previous relationship persuade a surviving spouse to change their mirror will?
Do you have dependants?
If you have dependant children, including adults with disabilities, you may get the reassurance you need with a discretionary trust will.
How complicated are your finances?
If you have complicated financial and business interests, you might want to speak with a professional and look into ‘will trusts’. This arrangement would give named trustees control over your assets on behalf of your beneficiaries.
Many things in life are outside of our control. But when it comes to important matters like your money, property and belongings, writing a will gives you the ability to assert your preferences, make provisions for your loved ones, and reduce stress. The future is never certain, but writing a will can give you and your family stable foundations and some peace of mind.
How do I write a will?
Find out more about life insurance
More articles and guides
Living wills and advanced decisions
What happens if you die without a will?
Over 50 Life Insurance
