February 24, 2010
What Is a Will?
Don t leave your family and children with additional expense and complications.
People who pass away without a valid will, or intestate, result in costs and worry to their families and often gift lots of money to the Nation in what may be avoidable Inheritance Tax (IHT).
The Law Society says that anyone with possessions and family or friends should make a will, regardless of their age. It is especially important if you are not married to your partner, because the law does not give partners the same rights of inheritance as spouses.
Property that is jointly owned by unmarried partners on a joint tenancy basis would still go to automatically to the existing partner under the rules of survivorship. Under the current intestacy rules, an unmarried partner has no rights to property or assets that were not jointly owned (although the Law Commission has lately suggested to change this).
Making a will is also critical if you have kids, as you can propose guardians to look after them.
It is important to create a list of assets and liabilities and their approximate values. Include your property, investment, savings, insurance policies and pension.
In addition, consider making specific bequests. Simply telling a relative that an item will be his or hers one day could cause upset later.
You should take professional advice on inheritance tax planning as part of writing your will. Simple steps could save the beneficiaries of wealthier householders thousands of £’s in taxation.
An important component of establishing a will is the naming of executors to make sure that your will wishes are carried out correctly.
You should also your will every few years or so and whenever your circumstances are altered by a substantial life event, such as marriage, split up or a birth or death in the close family. Another example would be after a house buy or move.
Whoever prepares up your will, make sure at least 1 copy is kept safe or deposit one with a probate registry.
Consilium Asset Management LTD provide inheritance tax planning advice in Gloucestershire
