Wills

If you die Intestate (without a will) you're likely to create expensive legal complications for your grieving family. Intestacy rules are 80 years old and don't take into account social and economic changes that have taken place over that time.

In England and Wales, intestacy law states that:

• If you are married with children, your spouse inherits everything up to the value of £125,000, plus personal possessions. Half the rest goes to the children (including illegitimate or adopted children) when they reach the age of 18, with the rest going into trust, and the spouse can earn interest on it, until the spouse's death, after which it goes to the children.
   
• If you are married without children your spouse gets everything up to the value of £200,000 plus personal possessions, with the rest divided between them and certain surviving relatives.
   
• If the family home was only owned by the deceased then the surviving spouse will not automatically inherit the house unless it is worth less than the £125,000 or £200,000.
   
• If you are unmarried with a partner and die Intestate your partner has no entitlement to your estate under intestacy law. The estate could be divided among your surviving children or blood relatives.
   
• If you don't have any close relatives your money could end up going to the crown.

If you have young children and both you and your partner die Intestate the estate is held in trust for the children until they are 18, but there is no guidance as to who should be their legal guardians, and they may end up being taken into care. There are restrictions on how their inheritance can be invested while held in trust.

Second families also create complications, because there is no provision in law for step-children and property is divided between the deceased's own offspring from both marriages. And although a divorce nullifies an existing will, in some circumstances first wives can claim a share of their ex-husband's estates in court.

Finally, rising property prices mean more people are now affected by inheritance tax, which is currently charged at 40% on the value of an estate above £263,000. Only joint owners of a house who are married are exempt, so if you and your partner die without altering your wills to take this into account you may leave your heirs with a substantial tax bill.

It's not that hard to avoid these difficulties. You could write your own, legally binding will, provided you sign it in the presence of two witnesses who were neither beneficiaries nor married to beneficiaries.

There are books, which provide helpful information, in particular the Which? guide to Wills and Probate, and software available online for a small fee that helps you lay out the document. But you should probably only write your own will without outside help if your estate is completely straightforward and not liable for inheritance tax. Bear in mind a solicitor's mistakes are covered by indemnity insurance; yours are not. The Which? guide recommends using a solicitor if:

• your (or you and your spouse's) assets exceed the inheritance tax threshold
   
• you co-own a property with someone other than your spouse
   
• you own a business or shares in a private family company
   
• you have complicated plans for your estate
   
• you have children from more than one marriage
   
• some of your assets are held outside the UK
   
• one or more of your dependants is physically or mentally disabled

Most problems with home-made wills are usually caused by a lack of clarity in the definitions of bequests or beneficiaries, e.g. a man bequeathed money to cancer research without specifying to which charity it should go.

A solicitor should be able to help you avoid these ambiguities. Fees vary, but start at around £100. You could also use a 'will writer', who may charge less, but if you do, ask to see evidence of their indemnity insurance. Many solicitors take a dim view will writers, as they don't need any professional qualifications to set up in business.

The choice of executor - the person who administers the will - should be made clear in the will. There's no reason why it shouldn't be a beneficiary, a relative or a friend. Many people appoint their spouse or partner as executor, although in these cases it may be wise to appoint someone else as a co-executor, in part to lift a burden from someone grieving, but also to cover the possibility of you both dying at the same time. You could ask your solicitor or bank to act as executor, to ensure complete impartiality, although they will charge a fee, and your bank will only act as executor if they prepared the will.

Keep a copy of the will safe at home in an obvious place. Solicitors will also keep a copy of your will, often free of charge. It sounds obvious, but make sure your executors know where the will is. Finally, as your circumstances and those of your beneficiaries or executors change, review your will every few years.

But above all, make sure you write one. You can't take it with you, but if you make a will at least you can be sure where it's going to go.