Nobody likes to consider what will happen after
his or her death, but a little thought now could save your family
a lot of anguish at what will already be a very difficult time.
Even the happiest of families can be reduced to arguments when a
loved one dies without leaving a Will.
Making a Will gives you the opportunity to choose what happens to
your estate, rather than relying on the legal rules which operate
on an ‘intestacy’, which means when no Will is left.
The following frequently asked questions will provide more information:
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but I don’t have much money
to leave
When you add up the value of your house once your mortgage has
been paid off, car(s) your life insurance, savings, furniture
and any other assets you may be surprised at the total.
Even if your estate is small in money terms, it is still important
to ensure your wishes are carried out. If your children are
under 18 years old it is vital you make provisions for them.
You can set up a trust to look after your children’s financial
affairs by your Will, and you should appoint guardians to care
for your children after your death.
The larger your estate the more important it is to ensure that
your family derives the greatest benefit and minimise the amount
of tax payable on your estate after your death. |
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could I make a homemade will?
People often think that a homemade Will is sufficient, but you
should not be tempted to economise on such an important matter.
Homemade Wills can often create legal muddles that can cost
thousands of pounds to unravel, and can cause further heartache
for your loved ones if your instructions are misinterpreted. |
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how much will it cost?
Making a standard Will is not as expensive as you think –
it’s usually cheaper than your TV licence. |
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what
happens if I decide not to make a will, I assume
it will all
go to my spouse?
If you decide not to make a Will, the division of your estate
depends on your surviving relatives and the following rules
will apply:
If you do not have any children then your spouse will be entitled
to your personal belongings plus £200,000 and half of
any remainder. Your parents or other members of your immediate
family will be entitled to the other half.
What will happen if one spouse dies leaving a house in their
sole name that is worth more than the amount to which the
other spouse is entitled under these rules? If this is the
case, the surviving spouse may have to find the difference
between the amount of their entitlement and the value of the
house if they are to keep the property. If the spouse is unable
to raise the difference, then they may have to sell their
home.
If you have no close relatives then your surviving spouse
will inherit everything.
If you leave a spouse and children, then your spouse will
get all your personal belongings together with £125,000
(or everything, if the total is less). The excess over this
amount will be split in half. One half will be divided among
your children when they reach 18 years (or their children
should they die before reaching 18 years). The surviving spouse
is entitled to the income from the other half during his or
her lifetime. After the surviving spouse dies, that half of
the property is then divided among the children.
If you and your spouse are involved in an
accident, it may be that the family of only one spouse will
inherit your entire joint estate. |
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I’m separated from my husband,
surely he won’t benefit from my estate?
Until you are legally divorced, separation has no effect on
your spouse’s right to inherit your estate. If you have
made a Will benefiting your spouse then they will still benefit
from your estate until you are legally divorced. Even after
your divorce, if you have not made a Will and have children
under 18 years old, in most cases your former spouse will be
the person to deal with your estate on their behalf.
If you re-marry and you do not make a Will, then your new spouse
will become the main beneficiary of your estate and any children
from your earlier marriage will not automatically be entitled
to any benefit. |
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this
is my second marriage – how will this affect matters?
If you re-marry and have not made a Will then your new spouse
will become the main beneficiary of your estate. Any children
from your earlier marriage may not automatically be entitled
to any benefit. By making a Will you can make arrangements
to provide for any children either from your own, or your
spouse’s previous marriage.
It should also be
remebered that marriage automatically cancels a Will unless
appropriate steps have been taken. |
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we
are not married but we are living together, I presume my partner
will be treated as if we were legally married?
The intestacy rules that apply if you have not left a Will
only cover legal spouses and blood relatives. If you are living
together your estate will pass to your children, or, if you
don’t have any, to your parents or brothers and sisters.
If your partner is dependent upon you, they may be able to
make a claim against your estate, but this may involve Court
action if your partner cannot come to any agreement with your
surviving relatives. Furthermore, your relatives will be the
people responsible for ‘winding up’ your affairs,
while your unmarried partner has no right at all to deal with
this very personal task.
The Civil Partnership
Act which came into force on 5 December 2005 provides same
sex couples who register their partnership the same rights
as married couples. |
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who are the executors and trustees?
Executors are the people you appoint in your will to carry out
your instructions. They should be people you can trust. Often
people choose more than one executor - you can appoint up to
four. You can also appoint substitute executors should any of
those you have chose die before you.
Sometimes people choose their solicitor as one of their executors
so that they know the legal side of their estate will be handled
correctly. Solicitors will charge for this, but at least you
know your estate should be dealt with in a professional manner. |
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will my estate be liable for inheritance
tax?
Inheritance tax is only payable on the value of your estate
that exceeds £300,000 after the payment of your debts and any gifts to
your husband or wife or charities. Inheritance Tax is set at
a level of 40% of the amount over this level. There are ways
of minimizing Inheritance Tax in your will and your solicitor
will be happy to discuss these with you. |
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where should I keep my will?
It is vitally important therefore that it is stored in a safe
place where your relatives know where to find it. Most solicitors
should store your will for free or for a very small charge.
Ask your solicitor when you see them. |
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| what other reasons are there for
making a will? |
- You can choose who will deal with the winding
up of your affairs and give them extra power to carry out
those tasks
- You can specify exactly what possessions
& money you want your family and friends to receive
- If you run your own business, alone or in
partnership, your can decide what happens to your interest
after your death
- You can make a gift to your favourite charity
- You can leave instructions for your funeral
arrangements
- You will have peace of mind knowing that
you have sorted out your affairs to help your loved ones
after your death.
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Don’t leave making a Will until tomorrow
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