The Mills Archive

Making or Changing a Will

Although it might at first seem a little daunting, making a Will is a very simple process. These notes provide a general introduction and the page on leaving money or property will help if you wish to leave objects or money to the Mills Archive Trust. In fact, we would be very grateful if you could consider a legacy to benefit the Mills Archive.

These notes are drawn up to reflect the laws of England and wales; other countries may differ. Even though the general principles may hold, it is wise to consult a solictor.

Why bother?

If you care about who benefits from your property after your death you need a will. Putting your affairs in order ensures that the savings and property that you have built up during your lifetime benefit the people and causes closest to your heart. Otherwise the state determines who gets what, if anything, and your friends, favourite charities, and even some relatives may get nothing. A Will can also help to avoid or reduce the amount of tax that may have to be paid on your death.

You probably need a solicitor

It is wise to seek the advice of a solicitor to be certain your instructions are legally valid. Poor wording can be very costly and traumatic for your heirs to sort out. The solicitor will make sure the Will is clear and unambiguous.

It should not cost a lot

The cost of making a Will varies so do get a quotation. Solicitors charge £50 to £100 for the preparation of a simple Will. Age Concern offers a Will writing service with a single Will costing £50 and a Codicil (a minor amendment to your existing Will) £35. [Phone Jean Fountain (020 8765 7200) or see http://www.ageconcern.org.uk/ (April 2002)]

Consider some simple preparation

It will save time and money if you have a few facts and figures ready

Make a list to clarify everything you own (property, car, accounts, policies etc, anything of value). You may be surprised, particularly if you own your home!
Note down the names and addresses of the people and or organisations you want to leave something to, and what you would like to leave each one.
Decide whom you want to sort the Will out after you die (your Executors).

Choose your executors carefully

It is advisable to appoint at least two executors in your Will, who will make sure your wishes are carried out after your death.

Ensure your executors agree to act and they understand the more complicated issues (eg if you are leaving a collection, will they know where to find it all?).
Choose friends or family members or a professional such as your solicitor (who will charge) and think of asking someone who is younger than you.
Executors (but not witnesses) can be left something in your Will.

Make sure your Will is valid

Wills must be signed at the bottom of the document in the presence of two independent witnesses. They must also sign the Will and must not benefit from it. The formalities for a Codicil are identical to those for a Will.

Look after your Will

It is important that you keep your Will safe.

Your solicitors will keep your Will for you at no charge; although they also recommend you tell someone (preferably your executor) where it is kept.
You should review your Will every five years or after a major life change such as getting married, divorced, having a child or moving house.
Anything complicated is probably best dealt with by making a new Will and destroying the old one. Tell people close to you so there is no confusion later.

Small modifications are worth doing

If your Will was made some time ago, you may wish to make a new Will or update your existing one with a Codicil. Before modifying your Will, it is a good idea to:

Review your choice of executors.
Check your assets and specify individuals or organisations you wish to benefit.
Consider whether you wish to leave a legacy to a charity like the Mills Archive Trust. Your legacy can help The Mills Archive, either by supporting the work we do, or by providing more material for our collections. Suitable forms of wording are given in the page on leaving money or property.

What type of legacy can you leave?

The three most common types of legacy are:

Pecuniary legacy. A gift of a stated amount of money; this will be eroded in value over time with inflation.
Residuary legacy. The whole, or part of the residue of your estate after taxes, debts and costs have been paid and all other legacies have been deducted.
Specific Bequest. A gift of a specific item (eg a collection of mill material).

Consider providing an "ultimate beneficiary" as one of the residuary legatees to take any of the estate not otherwise disposed of or in the event that another beneficiary is unable to take their share (eg if they die before you and do not leave heirs in their place). Charitable legacies are ideal for this purpose as they avoid Inheritance Tax.

How does Inheritance Tax affect your will?

Inheritance tax (IHT) may be payable depending on the value of your estate after all debts have been paid. Importantly IHT has to be paid before probate can be granted and your assets distributed. In some circumstances, if you have not left a Will, your surviving spouse may have to sell the house to pay other beneficiaries who have been identified by the state! You do not have to pay IHT on gifts to your spouse or to a registered charity such as the Mills Archive Trust. These gifts are subtracted from the value of your estate, and you only pay on the remaining value. Gifts to your spouse and registered charities may also be made during your lifetime, reducing any later IHT liability. The 2002 budget means your estate will have to pay 40% tax on all the remaining value above £250,000.

What next?

You can support the Mills Archive generally or in specific way, for example by an endowment, which supports the long-term sustainability of the Mills Archive. If you wish to leave anything to the Mills Archive Trust please read the page on leaving money or property and consider wording that gives the Trustees some discretion.