Wills and inheritance
If you do not
make a Will, or your partner does not make a Will, and one of you
dies, this is called 'dying intestate' - dying without a Will. This
could mean that your money and possessions would be distributed in
a way that you would not have wished.
By making a Will, you can ensure that your 'estate' (your money, property and possessions) is passed on in a way that you would want. You can nominate the person you would like to deal with your estate. This person would be responsible for passing on your estate as stated in your Will.
Your Will should be kept under review - it is important to keep it up-to-date, especially if your circumstances change. After getting married or registering a civil partnership, you still need to make a Will as any wills made beforehand become void.
Not married or not civil partnered
Couples who are not married or not civil partnered cannot inherit from each other unless there is a Will. And unless your partner has specifically named you in a Will, you will not automatically be nominated as his or her personal representative (the person who sorts out what is left behind). Without a Will, the only option for a surviving partner who feels they have not received reasonable financial provision is to make a claim under the Inheritance (Provision for Family and Dependants) Act 1975.
Married or civil partnered
Without a will
Distrbution here the spouse / civil partner and children survive:
Deaths before 1 February 2009
Statutory legacy of £125,000 to the surviving spouse / civil partner AND a life interest in hald of the residue.
The remaining hald share of the the residue is held on statutory trusts for the children.
Deaths after 1 February 2009
Statutory legacy of £250,000 to the surviving spouse / civil partner AND a life interest in hald the residue.
The remaining half share of the residue is held on statutory trusts for the children.
Distribution where the spouse / civil partner survive and there are no children
Deaths before 1 February 2009
Statutory legacy of £200,000 to the surviving spouse / civil partner AND a half of the residue absolutely.
The remaining half share of the residue is divided equally between the deceased's parents absolutely or the survivor of the. If no parents survive then to the brothers and sisters of the whole blood or their issue in equal shares.
Deaths after 1 February 2009
Statutory legacy of £450,000 to the surviving spouse / civil parnter AND a half of the residue absolutely.
The remaining half share of the residue is divided equally between the deceased's parents absolutely or the survivor of them. If no parents survive then to the brothers and sisters of the whole blood or their issue in equal shares.
If you have children
Married, civil partnered, or not, if you have children your Will should express what you would want to happen to them if you, or both you and your partner, should die.
Inheritance tax
Not married or not civil partnered
On the death of a cohabitee, the heirs, including the surviving partner, would have to pay inheritance tax of 40 per cent on all assets left above the personal threshold of £325,000 (since April 2009). This could cause real hardship in some cases - if, for instance, the deceased partner's share of the family home is worth more than £325,000. In some circumstances, survivors are forced to sell off their shared home in order to pay the inheritance tax. In areas where property prices have risen, the survivor may not be able to afford to buy another home nearby.
Married or civil partnered
On the death of their partner, the surviving spouse or civil partner will suffer no inheritance tax on the assets he or she inherits even if they amount to more than £325,000.
Inheritance tax does however apply to legacies left to any children.
If any of the tax free rate of £325,000 is unused after making bequests to other family members, the unused amount can be transferred to the estate of the surviving spouse or civil partner, which can then be used on the survivor’s death - this only applies where the survivor dies on or after 9 October 2007.
Inheritance tax will be payable on the surviving spouse / civil partner's death if the value of their estate exceeds the survivor's available nil rate band and the unused nil rate band of the first partner to die. For example if neither parnter has used any of their nil rate bands (during their lifetimes or on the first partner's death), then on the survivor's death inheritance tax will only be payable if the estate exeeds £650,000 (i.e. 2x £325,000)).
Further information
More information
and advice on making a Will can be found on the Citizens
Advice Bureau website.
The legal information on this page was checked by Langleys Solicitors.
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