There’s never been a better time to make a will.
New rules coming into force on 1st October 2014 are changing what will happen when someone dies without a valid will; known as dying intestate.
These new rules will change how the value of your estate is distributed in the event you die intestate, replacing ancient laws dictating the sequence and value for beneficiaries.
The current rules, which are being replaced, vary depending on the value of your estate.
If your estate is worth less than £250,000, your surviving spouse or civil partner will receive everything.
If your estate is worth more than £250,000 and you are married or have a civil partner, then the rules depend on whether you have brothers, sisters or they have surviving children.
Regardless, if you die intestate than the distribution of your estate is out of your control.
Under the new rules from 1st October 2014, a surviving spouse or civil partner will still get the first £250,000 of your estate (plus personal belonging) if you die intestate, but they will also receive half of the balance of your estate absolutely.
The current rules mean this half of the balance is received as a life interest, rather than absolutely, which means they can use the property or receive its income until their own death at which point it passes absolutely to your children, if you have any.
Another change being introduced on 1st October is that, where a person dies intestate leaving a surviving spouse or civil partner but no children, the surviving spouse or partner will take the whole estate.
This is the first review of the intestacy rules since the 1970s and the changes are broadly welcomed, but do highlight the importance of having a will in place rather than relying on government rules to distribute the value of your estate on death.
In addition to these new rules, something else which makes this the best time ever to make a will is that it is Will Aid month again in November.
Will Aid solicitors write Wills during November without charging a fee and ask for a voluntary donation of around £95 for single wills or £150 for mirror wills.
This donation income is shared by the nine Will Aid charities.
In our experience, the solicitors who participate in Will Aid tend to get fully booked very quickly, so you should find one on the Will Aid website and make an appointment today if you would like to take advantage of this scheme.
Alternatively, do get in touch with us and we can point you in the direction of one of the solicitors we work with on a regular basis who has expertise and experience when it comes to writing wills.
We would also welcome a conversation about your own estate planning goals, and can help you present an up to date Financial Plan to your solicitor.
