Read This If You've Not Yet Made A Will
I can’t count the number of times I meet dentists that are married, don’t have Wills and think their assets will automatically pass to their spouse.
Fortunately, the Ministry of Justice has recently announced an increase in the amount of the statutory legacy on intestacy (when you die without a valid Will). The statutory legacy is the amount which an individual is entitled to receive from the estate of their husband, wife or civil partner where the individual has not made a Will.
Unfortunately, despite the recent change, if you have not made a valid Will, your property will still pass according to the Law of Intestacy with the following results:
• Leaving money to people you didn’t want to
• It’s likely to take longer to finalise than if you had made a Will.
• During this time your beneficiaries may not be able to draw any money from your estate.
• It can also mean arguments and distress for relatives.
If you are married and have not written a Will, children, brothers, sisters or parents may also have a claim and you cannot assume all your assets will go to your spouse. This can create problems especially if you have children and a significant level of assets that are not in joint names.
From 1 February 2009 the statutory legacy will increase to:
• £250,000 (from £125,000) where there is a surviving spouse or civil partner and children
• £450,000 (from £200,000) where there is a surviving spouse or civil partner and parents or siblings, but no children.
It should be noted that although civil partnerships can now benefit from the same legal advantages as married couples, there are no statutory legacies for those just cohabiting.
If you are married and have children and your estate (excluding any joint assets) is worth more than £250,000, your spouse will only get the first £250,000 and a life interest (ie the right to take interest on the remainder, but not the capital itself) in half the remainder – the children get the rest.
If you’re not married the order of beneficiaries is children, parents, brothers or sisters, grandparents, uncles and aunts, and finally to the crown.
Despite this increase, we still urge all our clients to have a Will. Remember making a Will is the only way to ensure your wishes are carried out after your death.
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