ALL GOES TO YOUR SPOUSE - NOT!

 

WILLS - Last Will & Testament

This is a general guide and in some respects over-simplifies matters - but we want you to read it and understand at least the basics rather than writing a detailed technical manual!

A professional Will aims to ensure that your Estate benefits those you may wish to benefit in the most tax efficient way.  Even a basic pair of Wills for married couples can save tax - and a lot of grief for the surviving partner.

Your Will may contain Trusts to protect children or "vulnerable" beneficiaries, or to stop creditors or unscrupulous in-laws from getting your hard earned money.  It will take into account your circumstances and your legal obligations (some of which you may not like, but it can be disastrous to ignore them) and it may allow flexibility to avoid double tax charges.  If we write it, we will offer you the option of regular Reviews to ensure everything is and remains appropriate.  A Will may be worse than useless after 30 years, if it has not been reviewed in all that long time. How long do you need to think back until you come across major changes in your family – deaths, births, marriages, divorces, lottery wins (!) All of these and many more issues require Reviews.

Will Writing is a complex art and it is most unlikely an online Will or a Will Form from a stationers will do your family any favours.  Solicitors earn a fortune every year from people who have economised by doing cheap DIY Wills.

EVERYONE HAS A WILL, WHETHER THEY KNOW IT OR NOT.
But it just deals with your assets - not who should look after your children, nor does it allow you to look after anyone or make sure everyone is fairly dealt with, it certainly won't give an unmarried partner anything, no children who are not your birth children or legally adopted. It will be arbitary and unfair!

If you do not "write" one yourself, the Government will do it for you, and it will almost certainly cause problems for those left behind. If you are a homeowner, it is probable that your widow will have to sell the family home (or dramatically increase the mortgage) before the estate can be paid out. You cannot write your own Will until you are 18, unless you are on "active military service."

What happens if you have no Will?

This brief section is CRUCIAL - please read it!

If you die without a will your belongings are distributed according to a set of rules laid down by Parliament.

Please note that this is a generalisation of complex rules.

IF YOU ARE MARRIED/ civil registered... (if not, skip to the next section)

1. 1. Is your estate worth more than £125,000? YES: Go to step 2. NO: Everything goes to the spouse (For deaths from February 2009, this increases to £250,000)
2. Do you have children? YES: First £125,000 goes to the spouse, plus life interest (see note at foot) in 50% of the rest. The balance goes to the children at 8    NO CHILDREN? Go to 3.
3. Do you have parents, brothers & sisters? First £200,000 goes to the spouse, plus 50% of the rest. The balance goes to the parents, or brothers and sisters if parents are dead.     If NONE SURVIVING, everything goes to the spouse (From February 2009, this increases to £450,000)

IF YOU ARE NOT MARRIED...

Do you have living...     
1. Children?    Shared equally amongst children If NO: Go to 2.
        
2. Parents?    Shared equally between parents     If NO: Go to 3.
        
3. Brothers & Sisters?     Shared equally between brothers & sisters If NO: Go to 4.
        
4. Grandparents?    Shared equally between grandparents  If NO: Go to 5.
        
5. Uncles & Aunts?    Shared equally between uncles and aunts  If NO:    Go to 6.
        
6. None of the above?    Everything goes to the Crown     

(Note: Life Interest Trusts give the income only from the Trust who has the lifetime interest - which often means nothing - and they are very restrictive.)

Article by www.AWPP.co.uk who offer a free educational on Legal and Financial Planning course from their website.