What if I die without making a Will – Rules of Intestacy:
If you die without a Will, the government will utilise the Rules of Intestacy to determine who will inherit your estate. These were created in the 1920s and, despite significant improvements in 2014, may not meet your needs. Your spouse may end up splitting your assets with your children, depending on the circumstances and the size of your estate. Intestacy regulations apply to married or civil partners only if they are married or in a civil relationship at the time of death. So, if you are divorced or if your civil partnership has been legally ended, you can’t inherit under the rules of intestacy.
The full laws of Intestacy depend on which part of the UK you live in and can be found on the government website here https://www.gov.uk/inherits-someone-dies-without-will/y.
The point of a will:
People have reservations about discussing such a sensitive subject, but the process does not have to be as upsetting or difficult as they may believe. In fact, having a Will in place gives you the peace of mind that comes with knowing you’ve tied up all the loose ends.
It’s critical to have the right kind of Will – one that’s professionally designed to reflect your wishes as well as your personal and financial situations.
The correct Will can allow you to:
– Specify who you want to inherit your inheritance, in what order, and in what proportions, so you may rest easy knowing your intentions will be followed.
– Make specific inheritances to family or friends, as well as charitable offerings.
– Rather than leaving the decision to the courts, appoint suitable guardians for young children.
– Create maintenance trusts for your children to secure their inheritance until they reach the age you specify.
– If your surviving partner remarries, make provisions for children or other beneficiaries.
– Protect your share of the property from being sold to cover future care costs for your surviving partner, leaving you with assets to leave to your family.
Amending an existing Will:
It is advised that you review your Will every 2 to 5 years if you already have one. Your preferences may have remained the same, but the value of your assets and the law may have altered. It’s critical to make sure that your Will accomplishes your goals, protects your assets and investments, and, most importantly, that you’ve taken advantage of numerous areas of flexibility in estate planning law.
INHERITANCE TAX PLANNING, WILL WRITING, TRUSTS AND TAXATION ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.