As we start a New Year, with many New Year Resolutions being made, it is worth considering the future many of us often avoid considering. I know it is not something we like to think about but we are all mortal and at some point we will all die.
This need not be a something that hangs over us as we enjoy our lives, but if we do not make plans then we are storing up problems for those we leave behind.
So, here are some questions for you to think about;
- Do your loved ones know where and how to access vital documents – insurance policies, pensions, bank accounts, wills?
- Have you made it clear what will happen to your business on your passing?
- Have you written a clear, prepared will?
- Do you have a Lasting Power of Attorney in place?
- Do your loved ones know and understand your wishes regarding your end of life?
The reality is none of us know when and how we will face that final stage in our lives, so it makes sense to have some plans in place.
Making such plans is not about dying, it is about living.
Did you know that 55% of adults in the UK do not have a will?
Many of us think about getting a will, but something always distracts us and it never gets completed, but there are important things you need to know if you don’t have a valid will in place and you die.
Dying Intestate
When a person dies without leaving a valid will, their property (the estate) must be shared out according to certain rules. These are called the rules of intestacy. A person who dies without leaving a will is called an intestate person.
Only married or civil partners and some other close relatives can inherit under the rules of intestacy.
If someone makes a will but it is not legally valid, the rules of intestacy decide how the estate will be shared out, not the wishes expressed in the will.
Intestacy rules do not cover stepfamilies unless the parent who died had adopted the stepchild.
Importantly, couples who are living together but who are not married do not have any protection under the rules of intestacy. Even if they have cohabited for many years and lived together in every respect as husband and wife, without a marriage certificate and/or a will, a surviving partner will not be automatically entitled to any of their deceased partner’s estate.
There are many people who would fit into this group. According to the ONS (Office of National Statistics) there is an increasing number of people choosing not to get married.
If there are no surviving relatives who can inherit under the rules of intestacy, the estate passes to the Crown. Bona Vacantia means that a Treasury Solicitor is given the responsibility for dealing with the estate. The Crown can make grants from the estate but does not have to agree to them.
This is why having a valid up to date will in place is so important, making sure your estate goes to the people you want it to go to. Getting your will written now will save so much heartache down the line.
As well as making your wishes known regarding your end of life, it makes sense to consult with people who can help you get your estate in order.
Talking with your accountant, can help put your finances into perspective and they can connect you with professionals, who can help you with your estate planning to make sure you are being as tax efficient as you can be right up to the end. Making sure your hard earned money goes to your loved ones and not the taxman.
Having a plan in place for your death means you can fully enjoy your life now.
