Success! Following on from my first blog titled The Unspeakable Conversation – Inheritance, our family are now sitting around the dining table, actually talking about dying! Progress at last.
However, Mum and Dad are convinced all will be fine without the need to set up a Will. After all, it will all go to their two lovely children, and if anything happens to them both, Granny and Grandad will look after the kids. Simple, right?
Oh, if only it were that straightforward.
The Uncomfortable Reality
So many times, people are genuinely surprised to hear that inheritance isn’t always automatic – especially if Mum and Dad aren’t married, or if most of what they own isn’t in joint names.
Here’s what can happen:
When both parents die leaving children under 18: The odds are that the children will be put into at least temporary care by the local authority while everything gets sorted out.
When unmarried couples own property: If the house is only in one partner’s name (which amazingly still happens), and the owner dies, the survivor isn’t automatically entitled to the house.
When there’s no Will but a large estate: With today’s property prices, it’s easy to have a substantial estate. If someone dies without making a Will (which is called ‘dying intestate’), the laws of intestacy kick in.
The Intestacy Trap
Under intestacy rules, the first £270,000 goes to the surviving spouse, with the balance being split 50:50 between the spouse and the surviving children.
That may not sound like a problem, but here’s the catch: if the estate is over £1,250,000 (which can easily happen with property prices and life assurance payouts), then although the spouse won’t have to pay inheritance tax, the children might!
The Will Solution
All of this can be sorted by getting your Will properly drawn up. It means that:
- The deceased parent’s estate can be passed 100% to the surviving spouse without any inheritance tax to pay
- Gifts can be made to the children, but under the inheritance tax limit
- The house can pass to the survivor
- The children can be looked after by guardians you have appointed, and who can care for them as you’d want.
Peace of Mind
I can do all of this for you without fuss, without delay, with clear explanations, and with a cost that doesn’t give you a heart attack!
And back at the dinner table, Mum, Dad and the kids can tuck into their dinner safe in the knowledge that everything’s sorted.
For more information on our will service provision, please get in touch today on 01277 562 567 or ian.nicholson@bwep.uk