YOU SHOULD HAVE A WILL IN PLACE
You Should Have A Will In Place
When the first spouse dies, the survivor is left with all of the family’s assets. If they then need care, fall into debt or remarry, the whole of the estate is at risk. The children can end up with nothing – or worse still, someone else’s children can inherit!
If you own property, you should make a Will. Without a Will in place, once the homeowner or part homeowner dies, your estate will have to go through confirmation (sometimes called probate). A Will makes this much simpler by stating in law what is to happen to your asset. You may be able to protect your home and assets from being taken for care fees.
If you own property, you should make a Will. Without a Will in place, once the homeowner or part homeowner dies, your estate will have to go through confirmation (sometimes called probate). A Will makes this much simpler by stating in law what is to happen to your asset. You may be able to protect your home and assets from being taken for care fees.
If you have specific wishes about your belongings, you should make a Will. You wish to ensure that certain beneficiaries whether they be children, partners or friends each receive what you wish them to. You can appoint your own Executor of the Will who you trust to distribute everything according to your wishes. This also ensures that there are no arguments when you are gone.
“If you have children, you should make a Will to protect the children in case either one or both parents or other carers die”. Do you know that any child under the age of 16 years will be placed in foster care should you die without a Guardianship Order in place?
“If you have children, you should make a Will to protect the children in case either one or both parents or other carers die”. Do you know that any child under the age of 16 years will be placed in foster care should you die without a Guardianship Order in place?
The law changed substantially in 2007 therefore an old Will may have been right at the time but could be the wrong Will now! ILAWSSCOTLAND provide full professional estate planning, setting in place robust protection for you and your family’s home and assets.
Why should you make a Will – Did you know?
- A husband or wife does NOT automatically inherit 100% of each other’s estate when one dies.
- Partners who are unmarried inherit NOTHING from each other regardless of how long they have been together.
- Children under 16 years of age, who lose their parents, do NOT just go to a family member but WILL be placed in foster care unless there is a proper Guardianship Order in place.
- Should you end up in care; the government WILL seek to take your home to pay for care costs leaving your family with nothing.
- Your children may be disinherited should your spouse/partner live with or marry someone else after you have passed away.
We can ensure that proper provision is in place to accommodate any and all your estate planning needs affording you the peace of mind you deserve.
Inheritance tax allowances, reliefs, exclusions and exemptions
Inheritance tax is primarily a charge made on your assets at the time of your death. However, in addition:
- If you make gifts in the 7 years up to your death, these may also incur an inheritance act charge.
- If you give an asset away(such as your house) but still use it, inheritance tax may also be due (see ‘Gifts with a reservation of benefit‘).
Not all gifts will result in an inheritance tax charge as there are various allowances that can be used.
There is NO inheritance tax payable between spouses in Great Britain however, unmarried partners are not given the same benefit. The inheritance tax burden will always have to be calculated when passing your estate down to your children or other beneficiaries.
Inheritance tax allowances
The main inheritance tax allowance is £325,000 – this is called the ‘nil-rate band’. No inheritance tax is payable on assets you own at the time of your death up to this value. This rate will be in force until at least 5 April 2022.
In addition, you have a ‘Residence Nil Rate Band’ (RNRB). This can be used where you give property in your Will to a direct descendant (for example, a child or grandchild).
Currently, the RNRB is £175,000 (2020/21 tax year).
Each person, therefore, has an allowance of up to £475,000 on which they will pay no inheritance tax (depending on how much of the RNRB they are able to use).
Inheritance tax is charged at 40% on anything over this amount.
Married couples and civil partners
Assets left in a Will to a spouse or civil partner are not subject to inheritance tax, regardless of their value. So for example, if a husband leaves his wife his whole estate worth £500,000, no tax is charged on his death.
In addition, because he did not use 100% of his inheritance tax allowances, his wife’s estate will benefit from a 100% increase on the nil rate band allowance applicable at the time of her death plus 100% uplift on whatever Residence Nil Rate Band is in force at the time of her death.
Potentially, therefore, a husband and wife can pass on £1 million to their children, free from inheritance tax.
Charities
Gifts made to charity are not subject to inheritance tax. In addition, if you give 10% of your net estate to charity, any Inheritance Tax payable is reduced from 40% to 36%. Of course, this saving will only be useful if the value of your estate exceeds your nil rate band and Residence Nil Rate Band.
