Wills and Estate Planning

WILLS

It is astonishing that in these times of booming house prices and with fund value of pensions, only one in three adults has a Will.

The current threshold for inheritance tax means many adults may still be liable to this tax at a staggering 40%. There has however been changes in this area in favour of married couples and civil parents which means that on the first death any un-used nil rate band of the first to die can be added to the estate of the survivor. For example if spouses left their whole estate to each other by Will, on the second death, the survivor can pass over £600,000 (£650,000 as at 6 April 2009) without there being any Inheritance Tax to pay.

The tax and financial implications however, are only part of the story.  By not having a Will, your loved ones have to deal with the complications that dying intestate brings.  This is often at a time when they are at their most vulnerable and least able to deal with such matters. 

The intestacy rules are invariably inflexible and can result in your estate passing to beneficiaries that you would not have chosen yourself.  Further, in the case of unmarried couples, when one dies the remaining partner can often find themselves having to sell their home to pay out the next of kin whom the law recognises under the Intestacy rules.  This can cause severe financial hardship.

It is important therefore to make a Will at the earliest opportunity.  We at M J Thompsons. will provide appropriate legal and practical advice.  We also recommend that you keep your Will under review and periodically (at least every five years,
but sooner if there is any major change in circumstances) you update it.

We believe that the cost of making and updating your Will is a small price to pay for having the peace of mind of knowing that your estate will pass to whom you want it to and, your loved ones are spared any unnecessary distress or unpleasant surprises at a time when they are least prepared.

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ESTATE PLANNING

This is an area that is often overlooked by clients who are considering making a Will. 

By receiving appropriate advice our clients are able to properly plan their finances whilst they are alive so that they minimize the amount that may otherwise have to be paid in capital gains tax and inheritance tax.

It is important for individuals from all walks of life to consider Estate Planning and in particular the potential redistribution of capital and assets to ensure that their financial security and that of their loved ones, can be safeguarded.

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