'I'm an inheritance tax expert - missing this one step can be significant and expensive'

Planning your finances for after your death is never a nice job, but it's crucial to avoid burdening your loved ones with unnecessary stress, confusion, or a large inheritance tax bill during an already difficult time. One of the most important things you can do to ensure your wishes are respected and your family is protected is to write a will. However, a staggering 53% of adults aged between 50 to 64, and a further 22% of those aged over 65, admit they do not have a will, according to research from the Money and Pensions Service (MaPS).

Jacob Robinson, technical head of private client at the law firm Taylor Rose, warned that the financial implications of dying without a will can be "substantial". He told Express.co.uk: "Dying without a will can leave behind a tangled web of legal complications, particularly when significant assets are involved." He added: "It also means missing out on potential tax planning opportunities."

Without a will, the closest family members must apply for Letters of Administration or other Grant to have any authority to deal with the estate.

This process, also known as "Probate," is a court-supervised process that can be "lengthy and complicated."

Mr Robinson said: "Probate is not only time-consuming but also expensive. Legal fees, court costs, and administrative expenses can quickly add up, reducing the overall value of the estate. In some cases, the costs associated with probate can consume a significant portion of the estate."

Where there is no Will, the legal expert said a family member must obtain Letters of Administration to have any authority to deal with the estate.

He added: "This can take a great deal of time, especially with the current long delays at the Probate Registry, causing stress for family at what is already an emotional time. Family members often find this very upsetting."

Intestacy laws dictate how an estate is divided, often in ways that may not align with the deceased's wishes.

In the absence of a will, Mr Robinson said: "The estate is typically divided among the closest relatives, such as spouse, children, parents, siblings or more remote family in the absence of these.

"However, these laws do not account for the complexities of modern family dynamics, such as stepchildren, unmarried partners, or estranged family members, which are increasingly common today.

"This can result in unintended beneficiaries - those whom the deceased may have wanted to remain left out - receiving a share of the estate."

Additionally, a well-crafted will can include provisions to minimise estate taxes and ensure that more can be passed on to the intended beneficiaries.

Mr Robinson said: "Without these provisions, the estate may be subject to higher taxes, further reducing the amount available for distribution. Proper estate planning can help mitigate these tax liabilities and ensure that the maximum value of the estate is preserved for the beneficiaries."

Ultimately, the absence of a will can "significantly" impact the financial, legal and emotional wellbeing of the surviving family members, Mr Robinson said.

He noted: "The complications, delays, and emotional toll of dying intestate highlight the importance of proactive estate planning. By taking the time to create a will at an early age, you can ensure that your assets are distributed according to your wishes.

"Estate planning is not just about protecting assets; it's about protecting loved ones from the hidden pitfalls of intestacy."