Most people like the security of knowing that their partner, children or other dependants will be well provided for when they die. Many also recoil at the idea of giving the taxman more money than is necessary. However, according to Will Aid, a charity will-making scheme, 75 per cent of people aged under 45, and half of all those aged over 45, have not made a will.

Who should have a will?
There is a widespread perception that you don’t need a will until you have children. But experts say that anyone with assets should write a will to make sure their estate falls into the right hands in the event of their death.

What are the main reasons for making a will?
First, a will ensures that your personal wishes as to who inherits your assets when you die are granted. It also allows you to appoint guardians for your children, and it can significantly diminish your inheritance tax liabilities.

If you do not have a will, you may end up paying more tax than you need to because assets held jointly that are passed to anyone (except your spouse or civil partner) may be liable for 40 per cent tax.

What would happen to my estate if I didn’t have a will?
Your dependants could be left with high legal fees and the anxiety of deciding how your estate should be divided up. You also risk your assets going to a relative you are not close to – or even the Crown.

Lawyers say many people believe that in the event of their death, all their assets would automatically pass to their partner. This is not the case and if you do not have a will, your spouse or partner could be left short of funds.

If you have no will and are married or in a civil partnership with children, your partner would inherit the first £125,000 of your estate when you die. After that, the remainder is split two ways. Your spouse gets a life interest – basically income from interest or dividends – in half the remainder. The other half is divided between your children when they reach 18.

If you do not have children, your partner would inherit the first £200,000 plus half of the remaining assets. If your parents are still alive they would share the rest. If not, brothers and sisters share the rest and if there are no siblings, it goes to cousins, aunts, uncles or grandparents.

If there are no living relatives, the estate could pass to the Crown, the Duchy of Lancaster or the Duchy of Cornwall.

If you live with your partner but are not married or in a civil partnership, your partner would not receive anything on your death. Instead it would be distributed as described above but with no payment to your partner.

If your dependants cannot agree on who should get what, and no will is in place, family heirlooms could be sold off at auction.
How does having a will reduce my IHT liability?
Every individual has an allowance of £275,000 which is exempt from inheritance tax on death. IHT is then charged at 40 per cent on assets above this threshold. A popular way for people with assets worth more than the threshold to reduce their IHT bill is through “nil rate band discretionary” trusts. These allow couples to make use of both their individual £275,000 exemptions: once when the first partner dies, and again when the survivor does. For more details on nil rate band discretionary trusts, see www.ft.com/beginnersguides.

Why do so few people have a will?
Apart from a reluctance to think about their own mortality, many people do not realise the importance of a will or are unsure where they want their estate to go.

Where would I get a will from?
If you want a basic will there are countless websites that allow you to apply online for as little as £9.99. Some of these offer more elaborate products such as mirror wills – where you and your partner leave part or all of your estate to each other – and discretionary trust wills, where on first death, £275,000 is put into a trust.

But experts generally advise that you use these services only if you are single and have no children, as they may not offer you the best IHT solutions.

For a more bespoke service, you will have to contact a solicitor or financial adviser. It is particularly important to seek expert advice if you have children aged under 18, if you own a business or if several people depend on you financially. Your solicitor will be able to talk you through your IHT liabilities.

What’s the procedure for writing a will?
First you have to draw up a list of your assets and decide who will receive them. You must appoint at least one executor, over 18 years old. People often have two executors - one usually being the person most likely to be a major beneficiary and the second a friend or relative.

You also have to decide on a guardian for your children. Tell your solicitor of any specific gifts you wish to make, how you want your estate split and your inheritance tax position. Your solicitor will then draw up your will and you will sign it in the presence of two witnesses.

How much does a will cost?
This depends on how complex the will is. A standard mirror will for a couple costs around £200-£300. A more bespoke will, which involves detailed inheritance tax planning arrangements, could cost up to £750.

Can I amend my will?
Yes – minor amendments such as changing the executors or adding a grandchild should be straightforward and should cost about £75-£100.