LEGAL
As a first time buyer should I consider arranging a Will? Chloe Eyles is an Apprentice Solicitor in the Wills Trust and Probate Department at Prince Evans Solicitors LLP and explains why it is important to arrange a Will There is a common misconception in today’s society that having a Will in place is “tempting fate” or something to be done later on in life. Regardless of owning property or not, it is advisable that every adult has a Will in place. While you may think your estate is not significant enough to make a Will, you never know what the future holds and you could end up inheriting money or winning the lottery.
WHAT HAPPENS IF I DIE WITHOUT A WILL? In the event that you were to pass away without leaving a Will, you would die “intestate” and so your estate would essentially pass in accordance with the Laws of Intestacy. In brief, the intestacy rules stipulate if you are married, with no children, your entire estate passes to your surviving spouse. This can be problematic in the event that this is not in line with your wishes. If you are married with children, and your estate exceeds a value of £250,000, the intestacy rules direct that the first £250,000 of your estate shall pass to your surviving spouse and the balance of your estate is to be split evenly between your surviving spouse and any surviving child or children. This again can be far from ideal and does not allow you to maximise the use of the available inheritance tax thresholds. In the scenario that you pass away unmarried without having any children, not leaving a Will, and your parents are still alive, the intestacy rules state that your estate is to pass equally among such of your surviving parents. Similarly, should your parents have not survived you, the estate would then pass to such of your siblings in equal shares. In essence, ensuring you have a valid Will in place provides you with certainty that upon your death your estate shall pass to your intended beneficiaries. The intestacy rules do not accommodate for the exclusion of any person; or the gifting of assets to specific individuals.
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WHY IS HAVING A WILL IN PLACE IMPORTANT IF I OWN PROPERTY? If you own property solely, a Will can become an extremely important tool if you wish for that property to pass to someone in particular who you are not leaving the rest of your estate (otherwise known as the residue) to. It is also extremely important if you wish to make a specific gift of your property within a Will to detail as to whether you wish for the gift to pass to the intended beneficiary free of, or subject to, inheritance tax. Similarly, if there are any outstanding mortgages or charges secured against the property upon your death, it is crucial to detail whether the intended beneficiary is to settle these themselves upon receipt of the property; or as to whether your estate shall exonerate any charges levied against your property as at your date of death. When it comes to owning property jointly, it is important to establish how your property is held with others. There are two different ways in which you can own property jointly: » As Tenants in Common » As Joint Tenants When property is held as Tenants in Common a restriction is placed against the title to the property at HM Land Registry which, for the purposes of Wills and Inheritance, means that upon the death of the first owner their share
and interest in the property shall pass in accordance with the terms of their Will. On the other hand, when property is held as Joint Tenants, upon the death of the first owner the property automatically passes to the surviving owner(s) irrespective of the contents of their Will. In summary, upon the death of the first owner, holding property as joint tenants ensures that the property is not an asset which passes in accordance with the terms of a person’s Will. If you are unsure as to which manner you hold your property, it is advisable that you seek confirmation of such so that when you come to make your Will you are aware of whether the asset will pass in accordance with the terms of your Will; or not. If you own property jointly as Joint Tenants, however do not wish for your share and interest in the property to pass to the surviving owners and instead wish for it to pass in accordance with the terms of your Will, it will be necessary for you to change the manner in which the property is held jointly from Joint Tenants to Tenants in Common. This can be done by severing the title to the property.
WHAT DOES THE WILL WRITING PROCESS INVOLVE? Writing a Will is not an exhausting task. There are many subsections to a Will which may or may not be applicable, and which you may wish to consider beforehand.
APPOINTMENT OF EXECUTORS AND TRUSTEES Your Executor(s) are the people who
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