If you have not made a will your estate may not go to the beneficiaries that you intend it to.
In October 2014 the Intestacy laws changed, reformed to suit the Modern Family. The changes improve the position for surviving spouses but may lead to more claims by Adult children under the Inheritance (Provision for Family and Dependants) Act 1975.
| Situation |
|
|
| A spouse/civil partner but no children |
Spouse/civil partner receives the entire estate |
Parents/siblings do not receive anything |
| A spouse/civil partner and children |
Spouse receives the first £250,000, Personal Chattels, half of the estate outright |
Children receive the remaining half of the estate outright at 18 |
| No spouse but children |
Children receive everything in equal shares |
|
| No spouse children or relatives |
Everthing goes to the crown |
|
When considering inheritance tax planning the will is the most important tool. Research shows that 57% of the UK population does not have a will. That is over 29 million people.
There can be various reasons for this
I don’t have any money or assets to leave
I am too young
I am fit and healthy
Making a will is tempting fate
At minimum, if you have children, a will should be made to establish guardianship and financial provision for your children in the event of the death of all/both adults with established parental responsibility.
Planning allows for the most efficient use of exemptions and reliefs and for use of gifts over time to mange the size of estates and inheritance tax bills. Without a will in place alongside robust planning many reliefs will be lost. Act now for tomorrow brings the unknown.