Why Should The Government Decide Where Your Money Goes After You Die?

You have worked hard for what you have.

You have paid more than enough tax.

So shouldn’t you decide where your wealth goes after you die? Shouldn’t that be your right? – The simple answer is yes.

Yet two thirds of UK adults have not written a will. Nor have 70% who have children under the age of 18. This is an enormous risk.

Without a will, you could find;

Your property is handed to the wrong people.

Expensive legal disputes destroy the wealth you have worked your entire life for.

Your inheritance tax bill spikes – wiping out 40% of any mismanaged money.

Making plans for when you die is – understandably – difficult and uncomfortable -nobody wants to do it. However, one of the few certainties in life is that you are going to die.

Nevertheless, consider what could happen to the ones you love the most if you don’t have a will, if you put this off – and law decides what happens to your money.  And it’s highly unlikely the law will carryout your wishes.

If you die with out a will you are known as a ‘intestate’.

Your money is handed out according to a dated Government Standard. Not in any way which works for your specific circumstances.

To give you a few examples of what could happen without making a will;

John and his partner Margaret have been together 30 happy years. Margaret’s first husband, Gary, left her 40 years ago and she hasn’t seen him since. If Margaret dies Gary gets the bulk – if not all – of her wealth. John gets nothing.

Peter has three children and one-step child who he raised and loved as his own. If Peter was to die his three children would receive their shares – split evenly, but his step-child would get nothing.

David, an elderly man has no known relatives. However, his neighbours have loved and cared for him, they became a new family to him. When David dies they would not receive a penny, everything he owns is ceased by the Government.

These are only three straight forward and potential problems.

If you do not make a will, there maybe serious complications.

There are countless other possibilities because every situation is unique.

It should be noted quite simply, the Government do not consider your personal relationships after you die. The rules are straightforward. Sometimes leaving those you love and care for most with nothing.

Making a Will Keeps Your Tax to a Minimum to.

For example, you can pass as much money as you like to a spouse or civil partner, all without paying a penny of tax.

But that’s not all.

Gifts of up to £3000 a year can be handed to your children, whilst you or your spouse are alive. Again tax-free.

However, without a will your spouse will likely get your first £250,000 worth of assets, plus 50% of what’s left.

The other 50% would be split evenly between your children, or other members of your family, and this is heavily taxed.

So What Are Your Options?

First, obviously you can do nothing.

Let the Government decide what happens to your money. Place your family’s wellbeing in their hands.

However, we expect that is not the option for you, the chances are too high that something will go wrong.

Potentially leaving those you love the most with financial stress after you die.

Therefore you should ensure you make a will.

This does not necessarily need to be expensive, and instructions are quite straightforward.

We at 3cLegal, in view of the current Covid 19 crisis, are making a personal guarantee, that if we receive instructions from a new client, we will let them have a new will within in 24 hours.

If you require help in connection with any of these matters, please do not hesitate to contact us.