Wills
Your last Will and Testament is a powerful legal document. It should be correctly drafted to ensure your estate is distributed according to your wishes and any liability to IHT is minimised.
An existing Will is automatically invalid on marriage. You can write a new Will in contemplation of marriage which will become effective as soon as you are married. Wills may need to be changed again once you have children to ensure adequate provision for them.
If you die without having written a Will, your possessions may not be distributed as you would have wished. They will be distributed according to the law of intestacy.
Wills should be reviewed regularly to ensure they still meet your wishes as your family circumstances change and as the value of your estate goes up (or possibly down). In particular, Wills should be reviewed whenever a significant ‘life event’ occurs such as:
Marriage ½ Separation and divorce ½ Birth of child or grandchild ½ Death of child or grandchild ½ Death of spouse ½ Death of parent ½ Retirement ½ Redundancy ½ Change in employment status ½ Diagnosis of serious illness ½ Involvement in a serious accident ½ The sale or purchase of significant assets such as a holiday home
Careful Will planning is essential for everybody. A well-drafted Will can ensure that the wealth you have built up during your lifetime benefits the right people on your death – and it can also be structured to save tax. A discretionary Will trust could allow your executors to transfer some of your estate to your children (making use of your nil-rate band), if your spouse does not have need of the assets. This creates an opportunity to save up to £120,000 of inheritance tax.
Making a will is one of the most fundamental aspects of estate planning, yet many people do not appreciate its importance.
It is an essential means of ensuring that your assets are distributed in accordance with your wishes. You will thus be assured that you have made proper provision for all those you feel should benefit. And you choose the executors and trustees who will carry out your wishes.
It is also an opportunity to plan the distribution in a tax-efficient manner, particularly with regard to inheritance tax (IHT).
A Will can also appoint guardians of infant children, besides making appropriate financial provision for them.
Many people assume that if no Will is written, their estate will go directly to their spouse or civil partner, after they die. Under the law of intestacy in
The rest is split 50/50, half passing to your child and half providing an income for your spouse or civil partner. If you do not have a spouse, civil partner, or children, more distant relatives might benefit. Unmarried couples have no rights to each other’s possessions, if Wills are not made. If there are no surviving relatives, the estate passes to the Crown!
