You’re worth more dead than alive. It’s a shame, but for most of us it’s true - especially so for those who own businesses. So why is a will so important? Michael Bingold answers the FAQs for Journal readers.

WHO CAN MAKE A WILL?

Anybody of sound mind over 18.

WHAT HAPPENS IF I DO NOT MAKE A WILL?

The State in the absence of a Will determines who gets what. In this case, your wife gets everything up to £125,000 plus your personal possessions.

Anything remaining is divided into two - half to your children at 18 and half in trust during your spouses lifetime. On your spouse’s death the other half then goes to your children. If you have a house in your own name then it is possible that your wife or husband would not inherit the whole of the house.

I AM UNMARRIED BUT LIVE WITH MY PARTNER. DOES THIS MATTER?

It is important you remember that your partner is not related to you by law if you are unmarried, and they will not inherit any of your estate under the Intestacy Provisions.

I HAVE JUST GOT MARRIED/I HAVE JUST GOT DIVORCED, ARE ANY CHANGES NEEDED TO MY WILL?

Congratulations if you have just got married, but unless your original Will was made in contemplation of marriage, then you will have to make another Will.

Commiserations if you are getting divorced. Proper financial arrangements will have to be made for your spouse in the divorce, but you may not have to make a new Will as from 1982, changes normally occur to the effect as if your former spouse is omitted from your Will. However, it would be better to draw up a new one and to take detailed advice.

WHAT ABOUT MY BUSINESS?

On your death, whether you are a sole trader in partnership or own shares in a family limited company, your share of the business and goodwill will have a value and form part of your estate on which your heirs may have to pay taxes.

Your solicitor, your accountant and your financial adviser can all help you in mitigating tax and there are certain exemptions that benefit the small businessman.

What you should have a good idea of is the succession on your death - there is very little point in leaving your business to your son if he is not interested in it.

It may be that your manager would be delighted to buy it and perhaps an option might be included in your Will for him to buy the business at an agreed valuation.

It may well be essential that the business continues to produce an income for your surviving spouse and your professional advisers can certainly give you guidance, but really it is something for you to think through and discuss with your business partners, managers and shareholders.

Your advisers, working as a team, should be able to point ways of saving inheritance tax, ensuring that the business passes to your family intact as far as possible whilst setting up a machinery, probably backed by insurance, whereby your surviving partners can purchase your share.

WILL I HAVE TO PAY INHERITANCE TAX?

You may leave everything to your spouse and no tax will be payable. You may also leave the first £263,000 of your estate to your children or other relatives. The estate has to be fairly substantial to take part of both exemptions.

This is a complicated area and your accountant and your solicitor can help and may suggest setting up a discretionary trust in your Will.

DO I NEED A SOLICITOT TO MAKE A WILL?

Not strictly, but the pitfalls in making your own Will are many. The requirements of the Wills Act 1837 are very exact and you have to make certain that the formal requirements of the Will are followed.

Surely for your peace of mind it is worth consulting a solicitor? Also the language has to be precise. You do not want to fall into the trap of the testator who left everything to mum when he meant his wife, but in fact his estate went to his elderly mother.

I HAVE DONE MY WILL, IS THERE ANYTHING ELSE I NEED TO BE CONCERNED WITH?

All our lives change, you may win the lottery, you may be made redundant, you may have more children or your partner may leave you. Again you will be surprised how easily most of these changes can be dealt with by your solicitor.

Michael Bingold is a partner in the law firm Messrs Read & Rogers.