Wills and inheritance
If you do not
make a Will, or your partner does not make a Will, and one of you
dies, this is called 'dying intestate' - dying without a Will. This
could mean that your money and possessions would be distributed in
a way that you would not have wished.
By making a Will, you can ensure that your 'estate' (your money, property and possessions) is passed on in a way that you would want. You can nominate the person you would like to deal with your estate. This person would be responsible for passing on your estate as stated in your Will.
Your Will should be kept under review - it is important to keep it up-to-date, especially if your circumstances change. After getting married or registering a civil partnership, you still need to make a Will as any wills made beforehand become void.
If you wish you can write your own Will very simply; or you can buy the relevant form from various outlets or you can ask a lawyer to draw one up.
Not married or not civil partnered
Couples who are not married or not civil partnered cannot inherit from each other unless there is a Will. And unless your partner has specifically named you in a Will, you will not automatically be nominated as his or her personal representative (the person who sorts out what is left behind). Without a Will, the only option for a surviving partner who feels they have not received reasonable financial provision is to make a claim under the Inheritance (Provision for Family and Dependants) Act 1975.
Married or civil partnered
Without a Will, the surviving spouse or civil partner inherits the first £125,000, all personal possessions, and a life interest in half the remainder and the children get the rest in equal shares. If there are no children and no Will, the survivor gets the first £200,000, the personal possessions and half the remainder; the other half will go to any other surviving relatives.
But a Will takes precedence over these rules.
If you have children
Married, civil partnered, or not, if you have children your Will should express what you would want to happen to them if you, or both you and your partner, should die.
Inheritance tax
Not married or not civil partnered
On the death of a cohabitee, the heirs, including the surviving partner, would have to pay inheritance tax of 40 per cent on all assets left above the personal threshold of £300,000 (2007-08 tax year). This could cause real hardship in some cases - if, for instance, the deceased partner's share of the family home is worth more than £300,000. In some circumstances, survivors are forced to sell off their shared home in order to pay the inheritance tax. In areas where property prices have risen, the survivor may not be able to afford to buy another home nearby.
Married or civil partnered
On the death of their partner, the surviving spouse or civil partner will suffer no inheritance tax on the assets he or she inherits even if they amount to more than £300,000.
Inheritance tax does however apply to legacies left to any children.
If any of the tax free rate of £300,000 is unused after making bequests to other family members, the unused amount can be transferred to the estate of the surviving spouse or civil partner, which can then be used on the survivor’s death - this only applies where the survivor dies on or after 9 October 2007.
Further information
A Wills and Living Together
leaflet, produced by Advicenow can be found here.
More information and advice on making a Will
can be found on the Citizens
Advice Bureau website.
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