Quarter of over 55s have no will in place

New research by Canada Life has found that despite being the demographic most likely to have built up significant assets the data shows that one in four (27%) over 55s have no will in place, leaving millions exposed to potential probate complications and unexpected inheritance tax bills.

When asked why they have not yet written a will, procrastination was the most popular reason, with 38% of over 55s saying they simply had not got round to it.

One in five (21%) have not drawn up a will because they believe their estate will be passed on to their partner when they die, which is not always the case under UK intestacy law. One in ten (12%) said it’s too costly to get a will drawn up, and a similar amount (11%) just did not know where to start.

For those who do have a will in place, the research found that major life events often fail to prompt people to update their will.  Nearly two in five (39%) did not update their will after getting divorced.

Two in three (68%) over 55s did not update their will after the purchase of a new home, after having children (53%) or after getting married (44%).

Liz Hardie, Technical Specialist – Tax, Trusts and Estate Planning, Canada Life said “Leaving a will outdated, or not having one at all, means that UK laws of intestacy decide who will inherit your estate. This may not be aligned with your wishes and could result in a costly legal dispute or an unexpected inheritance tax bill if your assets go to your children instead of a spouse or civil partner.”

Not having a plan in place can leave families unnecessarily exposed to additional financial and emotional stress. Canada Life’s Life100+ research programme2 found one in five adults3 (21%) has experienced a family dispute over inheritance, underlining the importance of having a plan in place.

Not having a will can also cause avoidable delays to the probate process. Of those who have experienced a probate delay, one in eight (12%) said it was because there was no will in place, and the same amount (12%) said it was due to the will being poorly drafted.

Hardie concludes “Pensions coming into scope for inheritance tax from 2027 is already expected to complicate the probate process, as families are tasked with tracking down a lifetime’s worth of pension policies. Not having a will only makes this process even harder, potentially causing delays or even penalties for not paying an inheritance tax bill in time.  With inheritance tax potentially in the Chancellor’s sights ahead of the upcoming Budget, it’s a good time to make sure your will is up to date, or draft one if you haven’t already.

“Whilst policy and tax rules can shift, the fundamentals of protecting your loved ones remain the same. Having a will in place is a tool that can offer certainty and control – it ensures your wishes are clearly documented and your assets and belongings are distributed to your loved ones in accordance with your wishes once you are gone.

“Your will can, and should, evolve in the same way that life evolves. Whether it’s getting married, buying a new home or welcoming a new grandchild, these are the trigger moments that should prompt you to re-evaluate the legacy that you wish to leave behind. A professional financial or legal adviser can offer independent advice and guidance when drawing up or updating a will, as well as ensuring your estate is in good order for the next generation.”