Post by dyertribe on Sept 4, 2017 14:00:39 GMT
I'm posting this as a response to some questions arising from the "Marriage" thread.
Wills & what happens if you haven't got one.
OK, the law says (don't shoot the messenger!) that on death a single person has an allowance of £325,000 before their estate has to pay inheritance Tax (IHT) which is charged on any amount over the £325k at 40%. As there is no IHT to pay between spouses then on the second death that spouse has an allowance of £650,000 before being liable for IHT. There is also an extra allowance for your main property if you leave it to a descendant,( this is changing every year for a few years so I'm not going into it in depth here).
So, if you want to leave everything to each other and your assets are likely to be over £325k it is a good idea from a financial perspective to get married. (I did say don't shoot the messenger!)
There are some other solutions involving trusts but it's not cheap and it is a bit complicated which makes getting married the cheapest, easiest option. I can discuss these options but as all cases are different then send me a PM/
Intestacy.
If you die without a will then the intestacy rules leave the first £250k to your spouse or civil partner, half of anything else to your children and the other half to your spouse.
Not married? then it goes to your children equally.
No children? Then your parents get it.
No parents then your brothers and sisters get it.(or their kids if they have predeceased)
No children, parents or siblings? Grandparents get it.
No children, parents, siblings or Grandparents? It's aunts and uncles next, (or their kids if they have predeceased) if there are no full aunts & uncles then half aunts and uncles (or their kids if they have predeceased) get it.
None of the above? Everything passes to the crown.
Your partner may have a claim under the 1975 Family and Dependants Act but they would have to go to court to try to claim.
"There's no point me making a Will, I haven't got anything"
"There's no point me making a Will, my spouse and/or my kids will get it anyway"
To make a will costs (with us, other suppliers costs will vary) £120. Applying for a Grant of Administration (Probate if you didn't have a Will) costs £215. So, cheaper to have a Will than not if you don't own property as most banks etc, if you don't exceed their limits (between £25k & £50k depending on the bank, £6k in the Post Office) will release the money on production of the Death Certificate, Will and proof that you're the executor. So cheaper to have a will and you decide who gets what not the law!
There's no such thing as a free will.
Free Wills almost always have a catch, the most common one is the writer insists on putting themselves as Executor, this can be a licence to print money as they can charge whatever they like when a family member or friend can do it for nothing or at least shop around for a cost effective person to do it for them.
If they are online, or send you a form to fill in then there is no advice element and you don't know what you don't know. I often say that if you get your will wrong your beneficiaries pay, if I get it wrong my PI insurance pays.
Executors.
You need more than one, or one and a replacement, preferably younger than you.
Beneficiaries.
You need to think what you want to happen to the gift if they die before you.
That isn't everything by any means but I'm getting writer's cramp and I'm sure you're bored to death by now. Feel free to ask questions either here or by PM.
Lasting Powers of Attorney info may follow if anyone is interested and still has the will to live. (see what I did there?)
Alyson
Wills & what happens if you haven't got one.
OK, the law says (don't shoot the messenger!) that on death a single person has an allowance of £325,000 before their estate has to pay inheritance Tax (IHT) which is charged on any amount over the £325k at 40%. As there is no IHT to pay between spouses then on the second death that spouse has an allowance of £650,000 before being liable for IHT. There is also an extra allowance for your main property if you leave it to a descendant,( this is changing every year for a few years so I'm not going into it in depth here).
So, if you want to leave everything to each other and your assets are likely to be over £325k it is a good idea from a financial perspective to get married. (I did say don't shoot the messenger!)
There are some other solutions involving trusts but it's not cheap and it is a bit complicated which makes getting married the cheapest, easiest option. I can discuss these options but as all cases are different then send me a PM/
Intestacy.
If you die without a will then the intestacy rules leave the first £250k to your spouse or civil partner, half of anything else to your children and the other half to your spouse.
Not married? then it goes to your children equally.
No children? Then your parents get it.
No parents then your brothers and sisters get it.(or their kids if they have predeceased)
No children, parents or siblings? Grandparents get it.
No children, parents, siblings or Grandparents? It's aunts and uncles next, (or their kids if they have predeceased) if there are no full aunts & uncles then half aunts and uncles (or their kids if they have predeceased) get it.
None of the above? Everything passes to the crown.
Your partner may have a claim under the 1975 Family and Dependants Act but they would have to go to court to try to claim.
"There's no point me making a Will, I haven't got anything"
"There's no point me making a Will, my spouse and/or my kids will get it anyway"
To make a will costs (with us, other suppliers costs will vary) £120. Applying for a Grant of Administration (Probate if you didn't have a Will) costs £215. So, cheaper to have a Will than not if you don't own property as most banks etc, if you don't exceed their limits (between £25k & £50k depending on the bank, £6k in the Post Office) will release the money on production of the Death Certificate, Will and proof that you're the executor. So cheaper to have a will and you decide who gets what not the law!
There's no such thing as a free will.
Free Wills almost always have a catch, the most common one is the writer insists on putting themselves as Executor, this can be a licence to print money as they can charge whatever they like when a family member or friend can do it for nothing or at least shop around for a cost effective person to do it for them.
If they are online, or send you a form to fill in then there is no advice element and you don't know what you don't know. I often say that if you get your will wrong your beneficiaries pay, if I get it wrong my PI insurance pays.
Executors.
You need more than one, or one and a replacement, preferably younger than you.
Beneficiaries.
You need to think what you want to happen to the gift if they die before you.
That isn't everything by any means but I'm getting writer's cramp and I'm sure you're bored to death by now. Feel free to ask questions either here or by PM.
Lasting Powers of Attorney info may follow if anyone is interested and still has the will to live. (see what I did there?)
Alyson