What is a mutual will?
A mutual will is where two or more persons each agree to execute a separate will disposing of their property in a certain way.
Why it is important to make a will
A will details who shall benefit from your possessions and your estate (property) following your death.
These are some of the reasons why it is beneficial to make a will:
- You can decide how all of your assets are shared out – if you do not have a will (known as being in-testate) the law decided who gets what
- If you are an unmarried couple, you can ensure the other is provided for after death
- If you are divorced you can choose whether to leave anything to your former partner or not
- You can make sure that you do not pay more Inheritance Tax than is necessary
Married couples often make wills in substantially similar terms, they agree to leave their property to each other, but on the second death the property generally goes to their children (or otherwise as agreed)
The making of a mutual will
Each will has terms that are usually very identical or similar and confer reciprocal benefits – an example of this would be a husband, wife or civil partner may leave their property to each other with the same provision should the other predecease.
This in itself however is not enough to constitute making a mutual will. An arrangement or agreement to make such wills and not to revoke them without the consent of the other (s) must exist.
For more information on:
- Things to include in a mutual will
- Keeping your mutual will up-to-date