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17th May 2008

Do I need to make a will?

I have left college and have no assets. No real need but you might want to give guidance on funeral wishes and who should have your possessions.
I have bought a house with my partner and we are co-habiting. You will need a Will and a severance of the joint tenancy together with a deed of trust to deal with your half share if you want to give it to someone other than your partner.
I have got married. If you own a house jointly and have not severed the joint tenancy then the house will automatically go to your spouse or civil partner. Regarding any other assets which are not jointly owned the first £125,000 (or if there are no children, the first £200,000) will pass automatically to your spouse or civil partner, and the allocation of the remainder will depend on whether you have children parents or brothers and sisters with some inflexible trusts. Click to intestacy chart
I have children under 18 years. Married or not you will want to make provision for the care of your children in the event of a common accident involving parents. Failure to give such wishes as to Guardians could lead to the Social Services making the decisions for you.
Having allowed for life policies endowment policies and house price inflation if I die together with my civil partner or spouse our combined assets could be worth more than £300,000. With rising house prices more people are liable to the greatest stealth tax of all! Inheritance Tax (IHT) is due on everything over £300,000. So if you want your kids to have your cash to fund their own houses or higher education for grand children who will not have the benefits of grants, Discretionary Will Trusts may be the answer and they could save you potentially £120,000 in tax.
My children have married and we now have grandchildren but sadly my son has married a gold digger who is about to divorce him and “take him to the cleaners” and my daughters husband who runs his own business and is about to be made bankrupt with the Official Receiver about to pounce on everything he owns. What can I do to save my grandchildren's inheritance? Careful Will drafting will be needed making provision for grandchildren, regarding how much flexibility you want in respect of their shares and if they are to have fixed shares and at what age. Since the 2006 budget the Chancellor has penalised gifts that are deferred beyond the age of 18. Clients have commonly made provision for gifts to be made absolute on the age of 21 or 25, this is still possible but IHT will potentially be payable now at just over 4% on any gift or combination of gifts over the value of the nil rate band