Did you know that if you die without having made a will then everything you own could end up going to the state rather than the people you intended to benefit?
For example, if you die leaving family members who are financially dependent upon you (such as a spouse or children), it is the law that stipulates who will inherit your estate. Your dependants may not receive anything at all in certain circumstances. Unless you make a will the intestacy rules decide who inherits and in what proportions. The intestacy rules also determine who will be responsible for administering your estate and you will also have missed the opportunity to plan for Inheritance Tax.
These days with the increase in house prices, it is more important than ever for homeowners to have a will because of the effects of Inheritance Tax. By making a will, you can make use of tax planning opportunities.
If you die without a will - and you have no relatives beyond a group specified by the law - then absolutely everything you own goes to the Government.
Thankfully, that scenario is rare because the specified relatives are usually found, although the distribution of your wealth may not be in accordance with your wishes.
What about jointly owned assets?
Those assets (such as a house or bank accounts which are jointly owned) usually pass automatically to the survivor and are not covered by the intestacy rules. Taking professional advice on your estate planning requirements from a solicitor will be useful in helping you decide whether to keep assets in joint names or not, as part of your overall estate planning requirements. It is not always beneficial from a tax planning point of view to own assets, such as the family home, in joint names.
