Ison Harrison Wills FAQ
1. Why do I need a Will?
If you do not have a will then your estate may not go where you would want it to go in the event of your death. Your estate does not necessarily pass to your spouse under the intestacy rules. By having a will, amongst other things, you can control the destination of your assets, appoint guardians for your children, avoid disputes and save Inheritance Tax and Nursing Home fees
2. Do I need to change my will?
If you have a professionally drawn up will then there is every likelihood that it will not need to be changed. However changes of circumstances including divorce, death, rules of taxation/nursing home fee assessment and family fallouts can mean that it is vital to change your will. We would advise reviewing your will at least every five years.
3. Why should I use a solicitor?
Using a solicitor is usually cheap and straightforward. It means that you will be given the correct advice, that the will is valid and that your intentions will be met in the event of your death.
Where people make home-made wills incorrectly it often leads to problems on death which are expensive and sometimes not possible to fix. The costs for such matters can run into thousands of pounds so it is obviously wise to avoid this by taking professional advice whilst you are alive.
4. Does everything automatically go to my spouse?
No. Under the intestacy rules a spouse (where the deceased leaves children) receives property held as Joint Tenants, personal effects and the first £125,000. The rest of the estate gets split with half being held on trust for the spouse and the other half going to the children outright at the age of 18.
5. If I don’t have a will, will my estate go to the state?
No. If you don’t leave a will your estate will go to your closest relatives. These will be your spouse, children, parents, brothers and sisters, aunts and uncles, cousins and remoter people. Only in the rare event of you not having any such relatives will your estate go to the state under what is called “Bona Vacantia”. If you do not have any close relatives it is perhaps more likely that your estate will go to cousins who you may have never met.
6. How can I avoid paying nursing home fees?
By looking at your affairs in good time, by taking the appropriate steps to protect your home, normally by making an appropriate will or by the use of a simple family trust you may be able to effectively avoid paying nursing home fees or dramatically reduce the amount of nursing home fees you would otherwise pay.
7. If I give money to my children will they be taxed?
No. Your estate will be taxed if you make gifts and then die within 7 years of making the gift, subject to your estate being taxable when the gift is factored back in. If your estate would still be under the Nil Rate Allowance then there will be no liability to Inheritance Tax. You should however remember to only give away what you can afford to give away. Once you have given money away then you cannot rely on your children giving it back. Problems can arise if children subsequently die, divorce or go bankrupt. Always take Advice!