Lever House
61 Chorley New Road
BOLTON
BL1 4QP
Tel: 01204 365165
Fax: 01204 364509
News
CONTROL YOUR LEGACY - MAKE A WILL
Many people believe that on death their assets will automatically pass to their surviving spouse or civil partner, even if they don't make a will. Where there are significant assets this is not the case: the state dictates where your assets will go.
For most people, relying on the intestacy rules is not a desirable outcome. Assets could go to people that you do not wish to benefit, awkward 'statutory' trusts could be set up over some of your assets and there may also be unnecessary inheritance tax liabilities that could have been deferred or, with successful planning, avoided altogether.
Intestacy rules vary in different parts of the UK. Proposed changes from the Ministry of Justice from 1 February 2009 will increase the statutory legacy limits in England and Wales from £125,000 and £200,000 to £250,000 and £450,000 respectively. In Scotland the rules are different: a surviving partner has prior right to a home worth up to £300,000 and specified assets. In Northern Ireland the limits have been £250,000 and £450,000 since 1 January 2008.
From 1 February, if you die intestate in England and Wales leaving a surviving spouse or registered civil partner, your assets will pass as follows:
• If you leave a spouse or civil partner and children (including adopted children and illegitimate children as long as there is proof of parentage) that spouse or partner will receive assets to the value of £250,000 (up from £125,000) plus your personal chattels. They also receive a life interest (in effect, a right to the income only - not the capital) of one-half of the remainder of your estate.
The other half of the remainder of your estate goes to your children directly - so they will receive the capital -provided they are not minors. Statutory trusts are created for any minors until they come of age, when they will receive the capital.
• If you leave a spouse or civil partner but no children, then they will receive assets to the value of £450,000 (up from £200,000), your personal chattels and one-half of the remainder of your estate absolutely. Your parents receive one-half of the residue. If you leave no parents, your brothers and sisters - or their children - inherit.
Wherever you live, there is no acceptable substitute for proper estate planning and making a valid will that reflects your wishes as far as your assets are concerned. The Financial Services Authority does not regulate will writing and some forms of inheritance tax planning.
Many people believe that on death their assets will automatically pass to their surviving spouse or civil partner, even if they don't make a will. Where there are significant assets this is not the case: the state dictates where your assets will go.
For most people, relying on the intestacy rules is not a desirable outcome. Assets could go to people that you do not wish to benefit, awkward 'statutory' trusts could be set up over some of your assets and there may also be unnecessary inheritance tax liabilities that could have been deferred or, with successful planning, avoided altogether.
Intestacy rules vary in different parts of the UK. Proposed changes from the Ministry of Justice from 1 February 2009 will increase the statutory legacy limits in England and Wales from £125,000 and £200,000 to £250,000 and £450,000 respectively. In Scotland the rules are different: a surviving partner has prior right to a home worth up to £300,000 and specified assets. In Northern Ireland the limits have been £250,000 and £450,000 since 1 January 2008.
From 1 February, if you die intestate in England and Wales leaving a surviving spouse or registered civil partner, your assets will pass as follows:
• If you leave a spouse or civil partner and children (including adopted children and illegitimate children as long as there is proof of parentage) that spouse or partner will receive assets to the value of £250,000 (up from £125,000) plus your personal chattels. They also receive a life interest (in effect, a right to the income only - not the capital) of one-half of the remainder of your estate.
The other half of the remainder of your estate goes to your children directly - so they will receive the capital -provided they are not minors. Statutory trusts are created for any minors until they come of age, when they will receive the capital.
• If you leave a spouse or civil partner but no children, then they will receive assets to the value of £450,000 (up from £200,000), your personal chattels and one-half of the remainder of your estate absolutely. Your parents receive one-half of the residue. If you leave no parents, your brothers and sisters - or their children - inherit.
Wherever you live, there is no acceptable substitute for proper estate planning and making a valid will that reflects your wishes as far as your assets are concerned. The Financial Services Authority does not regulate will writing and some forms of inheritance tax planning.