What Parents Should Know About Inheritance and Wills

Most parents spend hours researching car seats, schools and childcare options. But when it comes to what would happen to their children and their money if something went wrong, most parents never have the conversation. It's uncomfortable, but it matters more than almost anything else you'll plan for as a parent.

Why a Will Matters Even When You're Young

A common reason people put off writing a will is the belief that they don't have enough to leave behind. But for parents, a will does something far more important than divide up assets. It's where you name a legal guardian for your children.

Without a will, there's no guarantee that the person you'd want raising your children is the one who ends up doing it. The courts will decide, and while they'll try to act in your children's best interests, they won't know your wishes. That process can take time, cause family disputes and leave your children in temporary care while things get sorted.

What Intestacy Rules Mean for Your Family

If you die without a will in England and Wales, your estate is distributed according to intestacy rules. These follow a strict priority order based on legal relationships, and they don't account for modern family life.

For married couples with children, the surviving spouse receives all personal possessions, the first £322,000 and half of whatever is left. The children share the other half. It's worth noting that jointly owned property held as "joint tenants" passes automatically to the surviving owner outside the intestacy rules, so a shared family home usually stays with the surviving partner regardless. Assets held in sole names or as "tenants in common" are the ones that fall under the £322,000 rule.

For unmarried couples, the situation is far worse. There's no such thing as "common law marriage" in England and Wales. If you're not married or in a civil partnership, your partner gets nothing under intestacy, no matter how long you've been together. Your partner's only route would be a claim under the Inheritance (Provision for Family and Dependants) Act 1975, which usually requires proving financial dependency. It's expensive, slow and far from guaranteed to succeed.

How to Protect Your Savings, Property and Investments

Beyond guardianship, parents should think about what happens to their financial assets. Without a will, savings can be tied up, property may need to be sold and children could receive large sums at 18 with no conditions attached.

Trusts and estate planning often sit outside what people picture when they think about financial advice, but UK wealth management services tend to handle this side of things too, and for parents it can matter just as much as how the money is invested. Setting up a trust, for example, can let you control how and when your children receive their inheritance. That matters if you don't want an 18-year-old inheriting a lump sum outright.

Life insurance is another piece worth looking into. A term policy can cover mortgage repayments and daily expenses if you die while your children are still young. Writing the policy in trust means the payout goes directly to your beneficiaries, sits outside your estate for inheritance tax purposes, and reaches your family without waiting for probate.

Keep Your Documents Where People Can Find Them

A will that nobody can find is almost as bad as not having one. Store your will, insurance policies, pension details and bank information somewhere safe and accessible, whether that's with your solicitor, the government's will storage service run by HM Courts and Tribunals Service or a trusted family member. Tell at least two people where everything is. It sounds simple, but plenty of families have been caught out by not knowing where to look.

A Small Step That Protects Your Whole Family

With more than half of UK adults still without a will, the chances are good that this applies to you. Writing one won't take long and it doesn't need to cost much. But for parents, it gives you control over who raises your children, how your assets are distributed and whether your partner is financially protected. Don't wait for the "right time." The right time is now.

This article is for general information and doesn't constitute legal or financial advice. The value of your investments and the income from them may go down as well as up, and you could get back less than you invested. Past performance should not be seen as an indication of future performance.