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Two reasons to review your will after gifting to loved ones

Siobhan Cordery, Gibbs Denley Financial Services
Siobhan Cordery, Gibbs Denley Financial Services

Giving assets to your loved ones while you’re still alive rather than after you pass away allows them to benefit from your gifts immediately and gives you the enjoyment of seeing your gifts improve their lives.

The value of your estate will change

Providing significant gifts to loved ones could change the value of your estate. This may be part of the reason you’ve decided to gift, as it may bring the value of your estate under inheritance tax thresholds, reducing the bill loved ones will face when you pass away.

However, it can also mean the way your estate is divided in your will isn’t appropriate anymore. Leaving a fixed sum of money in your will could now represent a higher portion of your estate than you had intended. Leaving a percentage of your estate instead could make more sense.

You may want to distribute assets differently

Gifting now may affect your wishes later: if you’ve just given a lump sum as an early inheritance to one child, you may want to adjust your will to reflect this. This could include leaving the recipient a smaller portion of your estate so that each child receives an equal amount when gifts and inheritance are combined.

How to update your will

There are two ways to update your will.

  • The first is through a codicil. This is a document that allows you to make amendments to an existing will. It must be signed and witnessed in the same way as a will and should be kept with the original document.
  • The second option is to write a new will. This should clearly state that your new will revokes any older wills or codicils. You should also destroy your old will and any copies so it’s clear which one should be followed.

Contact our team to find out more about how we could help you. Call 01954 233650 or email financial@gibbsdenley.co.uk.

Visit gibbsdenley.co.uk.

This article is for information only, and does not constitute financial advice. Annual gifting limits apply.

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