Estate planning

There are two facets to estate planning: making sure your estate goes to the right people, and not leaving them with an unwelcome tax bill.

 

Why we need a will

The laws of intestacy, that govern how our estate is shared out if we die without a will, were laid down in 1925. Times have changed since then but the legislation hasn’t.

 

In 1925 ordinary people probably didn’t need a will as, apart from a few personal belongings, they didn’t own much of value. And, in 1925, the idea of people cohabiting without being married, and babies openly born out of wedlock was unheard-of.

 

Fast-forward to 2007 where many people own property and not everybody is married. The only way your estate will automatically pass to your spouse (emphasis on spouse – the legislation does not recognise unmarried partners) is if its value is less than £125,000. A house alone will take the value above this threshold.

 

The laws of intestacy don’t only govern who gets your estate, they even decide who looks after your children. If you and your partner are not married, there is no guarantee the surviving partner will become guardian.

 

Hopefully by now you can see there is no reason not to have a will – and it could save a lot of grief. Contact us now to sort out your will.

 

Why we should all be wary of inheritance tax

There is no reason to pay inheritance tax. With careful planning you can avoid it altogether.

 

Inheritance tax used to only affect the rich and famous. But now, with our home-ownership culture and inflated property prices, it’s not difficult to build an estate of more than £300,000 – the point at which you become liable to inheritance tax at 40% of everything above this threshold.

 

Although an estate passing between spouses is free of inheritance tax, you are only deferring the problem until the surviving spouse dies.

 

If you don’t want to leave your beneficiaries with an unwanted tax bill, a bill that could run into £,000s, you had better let us know. Contact us now.