Hot Topic: Wills. Do you need one?

Most certainly. Everyone must have a will, particular those with assets of real value. There is a common view that if you die without a will your assets will pass to your spouse. This is only true if assets are held jointly.

If there is no will, the rules of intestacy apply, and the result will not be what you would ideally want. For example, if you die without a will and leave behind a spouse and children, then your spouse will receive only the first £250,000 of the estate outright.

The estate will then be split into two parts. One part will be held in trust for your surviving spouse for life, entitling her/him only to income, and, on her/his death, the capital will then pass to your children equally
at 18. The other half will pass to your children outright on their reaching the age of 18. The bottom line: without a will, if you have assets with real value, your surviving spouse’s options will be very limited.

Wills have an important part to play in passing your wealth to the next generation. The structure of your will must first and foremost ensure that there is proper provision for a surviving spouse and dependants. Secondly, it needs to do so in a tax-efficient manner