Don’t Leave Your Wealth to the Government

Do you know the true cost of dying without a will? Are you one of the 60% of Britons who haven’t made a will? If so, you may end up leaving much of your wealth to the Government instead of your family.

ACCORDING to unbiased.co.uk, 76% of people aged between 18-34 have no will in place. For those aged 35-54, 68% have no will. The over-55s are better prepared, with just 36% who haven’t made a will…but don’t leave it too long.

Between 2016 and 2017, the Treasury gained a massive £19 million because so many people died without making a will.

Don’t make the mistake of thinking wills are just for the rich. If you own a home, you’re worth more than you think: the average homeowner has more than £214,000 worth of property to leave to loved ones. Wouldn’t you rather that money went to people you choose, instead of being distributed by the Government?

Most of us would – so why do so many people take such a risk by not making a will?

■ Many people believe they’re not worth enough to bother.

■ Many think everything will automatically go to their partner or children when that’s not always the case.

■ And many people think it’s too expensive.

But dying without a will – even if you’re not rich – can cause real problems and heartache for the loved ones you leave behind.

Dying Intestate May Mean Your Loved Ones Miss Out

If you die without a will – which is called “dying intestate” – the Government decides who gets what from your wealth, referred to as an estate. Your spouse or civil partner is first in line, but won’t necessarily receive everything. Next in the queue are children or grandchildren, parents, siblings or their children, halfsiblings or their children, grandparents, uncles and aunts or their children and, finally, half-uncles and aunts or their children.

If your estate is worth more than £250,000 and you have children, your spouse will probably receive the first £250,000 as well as all your personal possessions. They’ll also receive 50% of what’s left – with the other half passing to your children.

If you have no relatives, your estate passes to the Crown or the Duchies of Cornwall or Lancaster. These rules are known as the laws of intestacy.

So, as you can see, if you die without making a will it’s entirely possible some (or all) of your wealth could go to people you don’t know very well – or at all. Friends, carers, and charities would miss out on your generosity.

Will Your Partner Automatically Inherit?

Some time ago, an unmarried couple who had been together for more than 30 years came into our law firm. They didn’t have children but were shocked to discover that if one of them died their assets wouldn’t go to the other partner. They had thought the “common law wife” concept would protect them. No such concept exists in UK law.

Because each person owned everything in their individual names all assets would have passed to their respective families. And because the property they lived in was solely in the man’s name things would have been particularly difficult if he died first. Under the intestacy rules his estranged brother would have inherited the house – and they had no idea where he was. The partner wouldn’t have received any part of the property. She would have had to make a claim against the estate.

This couple only needed simple wills – but what a difference they make. Now they’re both protected.

Don’t Pay More Inheritance Tax Than You Need To

Generally, any estate worth up to £325,000 is free of inheritance tax.

For any assets over and above that threshold, estates can be taxed at 40%. You may not think your estate is worth that much, but when you combine property, vehicles, and other assets it all adds up.

If your estate is larger, you’ll definitely want to think about inheritance tax: a specialist solicitor will be able to write your will in such a way that you minimise the amount of tax due, leaving more money for your loved ones. In fact, they may be able to save your beneficiaries many times the solicitor’s fees.

How To Save Headaches And Heartaches

Dying without a will can cost your loved ones thousands of pounds in wasted administration costs, and lead to bitter family arguments. Professionals will have to locate family members who may be scattered far and wide, as well as gather any investments you may have in various places.

When you make a will, you can take care of all that – and appoint the appropriate relatives or friends as guardians to take care of your children after you’re gone.

You can be sure your funeral wishes are fulfilled and make sure people you trust will take care of administering your estate.

In short, making a will takes away any guesswork and reduces the risk of any disputes. You can ensure your family and friends don’t have to deal with difficult administrative affairs while they’re grieving for you.

Book A Free Consultation Today Whether you think you need a will or not, it won’t cost you anything except a little time to come and talk to one of our experienced Private Client solicitors in an initial consultation. You can come to our offices and ask us anything - and we’ll help you work out what’s best for you.

For further information and to apply for a FREE CONSULTATION call us on 01753 271640 or email us at enquiries@parfittcresswell.com today quoting reference EXP2020