Why make a will?

Making a valid will ensures that your spouse, partner or children inherit what you intend and your chosen executors and trustees are appointed to deal with your estate and hold property in trust. Without a will the intestacy rules apply and your estate is distributed according to rules laid down by the government. This could result in your assets being distributed between relatives whom you never intended to benefit.

Making a tax–efficient will can minimise the inheritance tax you pay on your estate. Inheritance tax is paid at the rate of 40% for assets over £325,000. Wills can include the flexibility of a trust that can be discretionary or provide a right of income or occupation of the family home for a spouse or relative. Trusts allow you to provide for your surviving spouse and children or future generations whilst retaining flexibility and control of your assets.

If you have children under18 years the will should appoint guardians to care for your children in the event of your death. Without this provision the local authority will do so if there is no surviving partner with parental responsibility.

A will can direct your business interests, whether shares in a family company or an interest in a partnership, to your intended beneficiaries such as your son or daughter. This will ensure that important inheritance tax reliefs, such as business property relief or agricultural property relief, apply. This relief may reduce the tax on your business interests by 100%.

Older wills, particularly those for married couples prepared before October 2007, should now be reviewed to ensure that they have not been made obsolete by recent tax changes.

 

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Contact your local office today if you are concerned about wills or any inheritance tax issues.