Many people think that it is not necessary to make a will as they believe that their next of kin will inherit everything under the intestacy rules. This is not the case since, until this year, the sum that the immediate next of kin would receive on their relative’s death was quite small in the light of current property prices. In February 2009 the government increased the limits (for deaths after this date) but even now the rules can produce unexpected consequences.
Did you know that if you are married with children and leave an estate of more than £250,000 your spouse would have to share the excess with the children and would only be entitled to a life interest in her portion?
If you are married and have no children your spouse would be entitled to the first £450,000 but the rest would be paid to your parents, if they are surviving, or to brothers and sisters.
If you are living with a partner and are not married, then unless you have entered into a Civil Partnership, your partner will inherit nothing at all if you haven’t made a will.
It is important for you to make a will otherwise your estate will be allocated to your relatives under the Intestacy Rules. This may mean that the people you would wish to inherit do not do so. When you make your will you should consider taking professional advice so that you structure your affairs in such a way to ensure that the minimum amount of tax is due to the government.
If you would like to follow up the issues mentioned in this article contact Kate McNamee on 01442 508639 or email kate.mcnamee@pickworths.co.uk
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