Death of a Partner The importance of a will: The importance of making a will and keeping it up-to-date cannot
be stressed highly enough. You may find the following helpful:
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Dying intestate (without making a will) creates huge problems for
families. This is particularly true where children from previous
marriages or stepchildren are involved. If you die intestate and
your estate is worth less than £125,000, then your spouse inherits
everything. If your current spouse is not the mother or father of
your children, then your children will not automatically be entitled
to any provision at all - they would have to make a claim, which
is a costly way to drag out the trauma of losing a parent.
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If you have young children, it is essential to make a will to ensure
that they will be cared for by the people whom you choose in the
way you want.
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If you have complex personal affairs, dying intestate can open
up the possibility of unseemly and protracted legal battles between
friends, partners and relatives. This may mean that a large part
of your estate ends up in the pockets of lawyers.
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According to IFA Promotion, people in Britain are paying £1.3 billion
more inheritance tax than they need to. Inheritance tax is charged
at 40% on any money in your estate in excess of £263,000 (in the 2004/05 tax year). If you are married, you can draw up wills,
which divide assets in such a way as to maximise the tax advantage.
You may also want to make gifts during your lifetime, which will
be tax-free, as long as you survive for 7 years after the gift has
been made.
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If you have already made a will, you should update it regularly.
Make sure that all your assets, including pensions and insurance
policies, are left to people you want to benefit. If you have married
since you made your original will, it must be redrawn.
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Drafting a will does not have to be expensive. Solicitor's fees
for a simple will may be something like £75-£125.
Information on - estate planning
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