It is estimated that almost two-thirds of UK adults have not written a will and therefore are subject to the laws of intestacy on death. These rules have just been changed.
The new rules mean that surviving spouses will receive a larger part of the estate than was previously the case. Here is a summary of the new intestacy rules on death that apply when there is no will in place.
1. Married with no children
Whole estate goes to the surviving spouse. For example, if the husband dies with a total estate of £600,000, the wife would receive the entire £600,000 and the husband's father would receive nothing.
2. Married with children
The first £250,000 plus half the residue of the estate goes to the spouse absolutely. The other half goes to the children. For example, the husband dies with a total estate of £450,000, his wife would receive £250,000 plus £100,000 absolutely and the children would receive £100,000.
It is really important to not only write a will, but also ensure it is up to date and line with your personal objectives.
Another important consideration is the children. Who will act as guardian if both parents die? What about the children's financial future? What will happen ot the family home?
Finally, what of unmarried partners. Well, they will continue to have no entitlement at all. Even if they have lived together for years.
A will is a fundamental part of financial planning. If in doubt get in touch on 0117 966 5699 or firstname.lastname@example.org for a review of your situation.