Death is something most of us would rather not think about and
maybe this is why over 60% of us die without ever having made a
Will. This statistic, although surprising, is perhaps not that
difficult to comprehend. The demands of modern living mean that many
of us are preoccupied with making the most of our money, and people
seldom give little thought as to what will happen to their
belongings after they have gone. This relaxed attitude could cause
potential problems for those they leave behind. That is why it is so
important to put your affairs in order when you can. Sarah Lahive, a
Wills and Probate specialist at Harding Evans Solicitors answers
some common questions.
1. I have recently married for the second time and my wife and I
both have children from our previous relationships, I want to ensure
that my children from my first marriage inherit something after I
die, how would I go about this?
Many people have children from a previous relationship and via your
Will you can ensure that those children are catered for. By making a
Will you can ensure that your hard earned and valued assets are
protected and will pass to the beneficiaries of your choice. There
are also practical reasons for making a Will which are often
overlooked. For example, one can safeguard children’s interests by
appointing legal guardians to care for them if both husband and wife
die.
2. I am married and I want my wife to inherit everything after I
die, surely I don’t need to make a Will?
Many people are under the impression that it doesn’t matter that
they don’t have a Will in place, thinking that their estate will
pass automatically to their surviving husband or wife. As a result,
more than half of us die without making a Will (known legally as
‘dying intestate’). If you don’t make a Will the law will decide to
whom your estate should pass and in what proportions.
If you do not have a Will, your husband or wife will only inherit
the first £125,000 of the assets in your sole name, plus personal
effects (e.g. car, household goods). Any other part of your estate
(i.e. over the first £125,000) would be split into two, with one
half passing straight to the children and the other half being held
on trust to pay the surviving spouse an income for the rest of their
life. This is a complicated and difficult outcome which could even
mean that the surviving spouse is not secure in the matrimonial
home.
3. I’ve been living with my partner and we have two children,
we’ve never married but consider ourselves as husband and wife. What
would happen if one of us were to die?
At present the intestacy rules do not recognise co-habitees. The
effect of the intestacy rules has already been mentioned, and the
situation is worse again for unmarried couples and longstanding
partners who have no automatic entitlement to the deceased’s estate.
The intestacy rules only recognise spouses, civil partners
(registered under the new Civil Partnership act) and blood
relatives.
Therefore, if you live with your partner and die without having made
a Will, your partner will not automatically inherit any of your
estate. This can create serious financial problems for the surviving
partner who may find themselves facing a potential court battle to
prove their entitlement to their partner’s estate. This is expensive
and obviously a situation that should be avoided and a simple Will
is all that is needed to ensure that your partner is catered for.
4. In recent years, the value of my property has increased
dramatically to the extent that my assets will be over the
Inheritance Tax threshold of £285,000. Is there anything that I can
do to make sure that my wife and children inherit as much of my
estate as possible free of tax?
If your Estate exceeds £285,000 (the ‘nil rate band’ for 2006/07)
anything above that amount will be liable for Inheritance Tax levied
at 40%. With an expertly drafted Will couples can make sure that
they use both of their ‘nil rate bands’ so that up to £570,000 can
be passed on free of inheritance tax on the death of a surviving
spouse
5. Do I really need a solicitor to prepare my Will?
It is not necessarily a complex or costly business to have a
professional Will drawn up. There is a real risk that a homemade or
inexpertly drawn up Will will not have the effect you want, even if
your financial affairs and wishes seem straightforward. If you do
not follow the correct formalities for signing and witnessing of a
Will it may be completely invalid.
6. I’ve moved house a few times since I made a Will and I’ve
inherited quite a large amount of money as well, do you think that I
need to review my Will?
Even if you already have a Will it is important to keep this under
review at regular intervals (at least every five years). If you
marry or enter into a civil partnership then your current Will may
be invalid. The world does not stand still and in particular, your
family circumstances and relevant taxation laws will change.
Financial circumstances may also change, affecting the value of your
estate.
In summary, the importance of having an efficient well-drawn Will
means that obtaining professional guidance is worth every penny.
Making a Will need not be time consuming or expensive and will
provide you and your family with that extra peace of mind, knowing
that your wishes will be carried out.
