Should I make a Will when I get a Mortgage?
When you’re buying a property a number of questions can crop up. One of these is whether you should make a will on purchase your property. Let’s find out if you should.
If you’re about to buy a house or are looking to begin your property hunt there are probably millions of questions circling around your head. One of the most common questions among buyers is whether you’ll need to make a will when you get your mortgage. In short, the answer is no, you aren't legally required to make a will but, yes you should make a will anyway. Let’s find out why!
Why should I create a will?
For those of you who aren’t sure what a will is, it’s essentially a legal document that settles who your estate goes to in the event of your death. This can be a great idea for people who may have several beneficiaries as it will ascertain who your belongings are passed on to in the event of your passing.
Mortgage advisers believe that this can be a great idea for simplifying any disputes between family members over who will be entitled to what. So, if you’ve got a family who are likely to argue over their entitlements or who was closest to you, it might be a good idea to get a will put in place! It can also help provide younger family members with financial support should they need it when they become eighteen.
What should my will include?
Wills should essentially cover who you would like the benefactors from your estate to be. This can include friends, relatives, or even charities. Your will should include cash assets in the form of cash legacies and bequests which can also come in form of property. As well as this, they should include who the executor will be for your estate. The function of the executor is basically to carry out the instructions that you would have left in your will.
Most mortgage advisers recommend that you name more than one executor as a safety net if there are problems with the one that you’ve selected. Your executor can be your partner, one of your relatives or friends even if they are one of the beneficiaries. If you’re also worried about how well they might carry out their role you can administer a commission probate service to help oversee the executors and provide them with professional help. If you feel like this may save you a lot of hassle (especially if you’re part of an argumentative family) most mortgage advisers will recommend this to you.
Wills can be quite simple to have drawn up. However, if you have a joint ownership over a property, object or asset then this can make the distribution of these things much more difficult. This is where it will be essential for you to see if you can get professional advice. We would advise you to seek help from an independent will writer or an estate lawyer. This can be a great help for you to answer any questions that you may have on the legal process surrounding drafting a will and how to allocate property when you a joint-owner.
What might happen if I die without a will?
While a lot of people tend to assume that if you do not make a will then your assets pass on to your next of kin, it doesn’t always pan out like this. Unfortunately, if you haven’t sorted out a will then there can be instances where the law will decide who the beneficiaries will be to certain parts of your estate. The government may even end up owning all or part of your estate.
How might having a mortgage affect your will?
If you’re making a will then most mortgage advisers will recommend that you take out a minimum of life insurance. This is basically a type of insurance that will pay out a lump sum to your dependants should you pass away. While this may make for bleak reading this could be a very lucrative way of setting your family up in the event of your passing. It also means that even if you don’t have a large equity stake in your property, the house will be paid off should you die. This can be a great means of reducing anxiety for you and your family as it will mean that the latter will be continually provided for and given a home.
How can I obtain a will?
When you draft your will upon purchase of a property that you list all of the assets and possessions that you would like to pass down. Not only will this help you organise yourself but also it will generally give you a better idea over what items you would like to allocate to a specific person.
This is where we would recommend the services of a Will Writer, Estate Planner or Private Client Solicitor. They can be a great source for drafting your will and answering any questions that you may have over the will writing procedure and if there are any loopholes that you should be aware of.
How can we help?
Just remember, all the questions that might be swirling around in your head are perfectly normal. What’s even more important for you to realise is that they can be answered. And while you might be wondering what your first steps might be in finding these answers, the reality is that they are right in front of you! At Mortgages Online we are a mortgage advisor that can help you with any mortgage/will related queries. All you have to do is check our website or send us an email! We’re completely free to use, so put those credit cards away!
At MO, we’ve got so many resources for you to utilise. Yes, we’ve got guides for first-time buyers, articles on the different types of mortgages, explaining stamp duty, information on self employed mortgages and so much more mortgage advice. Our online mortgage brokers can help find the mortgage that’s right for you. Mortgage made easy with MO.