Do It Yourself Wills while you are in Dubai?
Do It Yourself Wills have become a popular way of arranging inheritance matters. Available in high street shops or over the Internet, they allow anyone who may be unable or unwilling to consult a solicitor to draw up a formal Will. For a fair number of people this may work out perfectly well but unless you get it absolutely right, a DIY Will could create more far problems than the small saving made actually solves.
DIY Wills cost can be found for sale at less than £10, which considerably less than the normal cost of a British solicitor to draw up a Will, typically £150 – £250 for a basic Will. In the case of Will Writers and lawyers in Dubai or anywhere else in the UAE typical prices vary from about 2,000 AED and up to some very high levels. You really should also bear in mind that getting it wrong whilst an expat will cause even more problems for those left to pick up the pieces. The inheritance law provisions in Dubai, Abu Dhabi, Sharjah and the rest of the UAE can only work to make it more likely you just will get it wrong.
The price of a DIY will is attractive of course but it is vital to remember that a Will is a legal document that determines how your estate is to be divided up in the event of your death. Get it wrong and your loved ones might face years of costly legal battles to untangle the situation.
So if you have decided to draw up a DIY Will, what should you think about and what are the most common mistakes?
Large estates
Over a certain threshold, your estate may be subject to Inheritance tax. There are ways that you can make gifts to family members in your lifetime that are exempt from any Inheritance tax calculations, but unless you speak to a lawyer, you and your family may be missing out financially.
Second marriage
If there are children from a previous marriage to consider, it may be wiser to draw up a Trust alongside your will to make sure that they are not excluded from any inheritance you may wish to pass onto them. This is a common problem that many people are simply not aware of.
Property gifts
A couple usually own property as either joint tenants or as ‘tenants-in-common’. If both partners are named on the deeds of the property as joint tenants, it will automatically revert to the surviving partner on the death of the other partner, but it is not be regarded as an inheritance. If you have written a DIY Will that leaves half of the value of the property to another person such as a child from a previous marriage, they cannot inherit unless you have changed the ownership of the property to tenants-in-common. This is one of the main pitfalls mentioned in the paragraph above.
Leaving money to charity
Many people like to remember charities in their Wills. But unless a specific charity is mentioned by name, leaving a legacy to ‘cancer relief’ for example, could cause problems unless you have specified exactly which cancer charity you want to benefit from your Will. In a worst case scenario, it could mean that more money from your estate is used up in legal battles than actually goes to the charity. You should bee specific if you wish to leave a donation to a charity in your Will.
Who gets to write the Will?
Don’t let one of the main beneficiaries write the Will. Wills that are written by those who benefit most from them are more open to legal challenge. If you are unable to write the Will yourself, try to get someone to draft it for you who is independent of any beneficiaries that are named in the Will.
Don’t search Google for the jargon
Avoid putting in excess ‘legal verbiage’ just to make a Will look more ‘official’. This can actually cause more problems. If a phrase is used in the wrong context, it can completely alter the meaning of the Will and your beneficiaries could face a legal challenge. Keep the wording simple and crystal clear to avoid unnecessary problems.
Don’t give too much away at the wrong time
The temptation may be to leave ‘everything to ‘so and so’. This may seem to be the obvious thing to do, but it could also lead to problems if the estate is left to a young person or an older child who has problems (e.g. financial or marital) An excellent alternative may be to draw up a Discretionary Trust that is managed by Trustees. That way, the Trustees can ensure that the estate is managed properly and the child will actually benefit from the inheritance rather than lose it to an addiction or in a divorce settlement.
The nil-rate Inheritance Tax band
Estates valued at over a certain amount(currently £325,000) are liable for 40% tax on the balance over the ‘nil-rate band’. Assets passed between married or civil partnership couples are exempt from this and any unused part of this nil-rate band can pass to the surviving spouse or partner. Couples whose estates are worth more than the nil-rate band should also consider setting up a Discretionary Trust to ensure that their children do not have to pay high levels of Inheritance tax. A lawyer will be able to advise you on this and help you avoid wasting what is known as ‘spousal exemption’.
Updating the Will
DIY Wills are often an impulse purchase, and can then sit languishing in a drawer for years. If you forget to update your Will, then if that DIY Will is found after your death, it will be used as proof of your last wishes. However, if your wishes have changed, they will not be considered as part of your last Will and testament. Also, if you have remarried, for example, the Will is invalidated (except in Scotland). If you have divorced the Will may be worse than useless. Do ensure that sure the Will you leave behind is the one you want to be used.
Signing the Will – the Attestation
One big area of problems is caused by improper attestation (Will signing) which can render the will invalid. Despite any amount of information telling people that two independent witnesses are required this part is too often done incorrectly.
DIY Wills are legally binding documents that you obviously intend to rely on, so it is essential that you get them right. You might even be setting yourself up for intestacy without even knowing it!
If you have any doubts about your DIY will, talk to a legal expert who will be able to help you make sure that your will is both fair, accurate to your wishes and legally watertight.
Some solicitors and Will Drafters offer to review your will at a modest fee or even for free. This should be “an offer you can’t refuse”. It is an offer we make at Dubai Expatriate Wills too and we will do it for free. So for those ex pats who have a Will already whether you live in Dubai, Ajman, Abu Dhabi, Sharjah, Ras al Khaimah, Fujairah, Umm al-Quwain,Dubai, in fact any part of the United Arab Emirates please take up this offer.
