Wills
If you don't make a Will your estate may not go to the people you want it to go to. The future of your family may depend on your having prepared an effective and legally valid Will. With our specialist knowledge of property, trusts and tax law we can help you to ensure that your estate passes to the people you want it to go to in the most effective way.
WHY YOU SHOULD MAKE A WILL?
- If you don't make a Will your estate, or parts of it, might go to the wrong people; a Will is the only way you can be sure that your estate goes to those whom you want it to go to.
- A Will is the only way of making sure your estate is administered by people you can trust.
- If you have small children you can use a Will to appoint Guardians.
- If you are wealthy a Will can help you to save tax.
- If you are not so wealthy a Will ensures that your estate is administered and distributed in a simple and cost effective way.
THINGS TO THINK ABOUT WHEN MAKING A WILL
- Do you want the whole of your estate to go to your husband/wife/partner if you die first?
- If you and your husband/wife/partner die together or if you die after him or her do you want the whole of the estate to go to your children?
- At what age do you want the children to become entitled to capital?
- What is to happen to your estate if your family all die together, for example in a car crash?
- Who do you want to appoint to be the Guardians of your children if you and your husband/wife/partner die before they have reached 18?
- Who do you want to appoint as Executors? These are the people who are responsible for carrying out your wishes. There is nothing to prevent a beneficiary, for example your husband/wife/partner, from being an Executor.
On the second death, especially if money might have to be held in trust for children until they reach a certain age, we would recommend appointing a close friend or family member who knows the children and will be aware of their needs together with a professional Trustee such as a partner in this firm. A professional Trustee is important in order to make sure that the Trusts are run properly from a technical point of view and also to provided an objective point of view.
These are the kind of things that a couple should think about; similar considerations apply to any will e.g. you should consider who will be the main beneficiary/beneficiaries and what is to happen if the main beneficiary or one of them dies before you.
TAX PLANNING
The tax that may be payable when someone dies is Inheritance Tax. Subject to certain reliefs and exemptions your estate is charged with Inheritance Tax at the rate of 40 %. The two most common reliefs are:
1. the first slice of a person's estate (known as the "nil rate band")
is not taxed
2. gifts to your husband and wife are exempt from Inheritance Tax.
Huge tax savings can be made by careful use of the nil rate band so it is important, when making a Will to discuss your assets, how you own them, and their value in order to know whether tax planning is required.
Click here to visit our Tax Planning section
WILLS AND SECOND MARRIAGES
Parties to a second marriage, particularly if they have children by the first marriage, may wish to consider leaving their estate, or parts of it such as a house, in trust for their wife/husband/partner.