Q. I am a married man with two children under the age of 18. My estate is
worth approximately £800,000 and I do not own any assets jointly with my wife.
I do not have a will. Am I correct in thinking that on my death the entirety of my
estate would pass to my wife?
A. No - as you do not have a will, this would not be the case. You would be said to
have died intestate and your estate would be distributed in accordance with the
intestacy rules. As you have children, your wife would receive a lump sum of
£250,000 from your estate together with interest on that sum from the date of your
death until the date it was paid to her. She would also receive your personal
possessions. The remaining £550,000 however would be held on trust. Your wife
would have the right to receive the income that half of this sum (i.e. £275,000)
produced for the rest of her life, such as interest, dividends etc. On her death
however, the capital sum of £275,000 would then be split equally between your
children. The remaining £275,000 would be held on trust for your children in equal
shares until they reach the age of 18 and your wife would have no right to benefit
from this sum.
If therefore you would like to ensure that your wife receives the entirety of your
estate, it is imperative that you make a will stating so. It is also worth noting that if
you make a will leaving the entirety of your estate to your wife there should, at
present, be no inheritance tax payable on your death because your wife is regarded
as an exempt beneficiary. If, however, you die without leaving a will, then your estate
could be liable to pay an inheritance tax bill of as much as £90,000. You will see
therefore that having a professionally drawn will could well be regarded as paying for
itself!
If you have any questions regarding wills and probate please contact Emma Small or
Jo Buckley on 01949 838 439.
Fraser Brown is a dynamic law practice working at premises in Nottinghamshire through its branches in Nottingham, Radcliffe on Trent and Bingham.
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