If your family does not have a traditional structure, you need to have a clear understanding of how inheritance will work.
Where there are cohabiting partners, new spouses, same-sex relationships, children from a former relationship, or blended families, the law can be complex. It is crucial to ensure you have the right Will in place to provide for your loved ones when the time comes, and to avoid any future misunderstandings or disagreements.
What happens if you don’t have a Will?
If someone dies without leaving a Will, then the Rules of Intestacy apply. These state that a spouse or civil partner will inherit the deceased’s personal possessions, plus the first £322,000 of their net estate. The balance is split in half, with the spouse or civil partner receiving one half and any children sharing the other half between them. This means that children might receive much less than you intended.
Another major problem with the Rules of Intestacy is that cohabiting partners and stepchildren are not entitled to anything. If they need financial support, they would need to make a legal claim against your estate. This can be expensive, both for them and for your estate, and can result in a bad atmosphere amongst family members.
If you want to provide for a cohabiting partner or other family members, it is crucial to make a Will.
Sideways disinheritance
The risk of sideways disinheritance occurs when an estate is left outright to a spouse or partner. They might remarry in the future, or decide to leave everything to someone else, and not to your children, even if you intended this to happen. If they die before their new spouse, then the new spouse could leave everything to their children, meaning that children you and your spouse shared could receive nothing.
Securing your estate for your children
By leaving a Will, you can ensure that your children or other loved ones are provided for, no matter what your spouse or partner does in the future. You can leave them a life interest in assets you want them to be able to access, such as a shared property. This will mean they can inhabit the home as they wish for as long as they need to.
In due course when they die, your share in the property and any other assets that you only gave them a life interest in, will pass in accordance with the terms of your Will. This could be to your children. By structuring matters in this way, you ensure that your chosen beneficiaries do not miss out, even if you want to provide for someone else as well.
Providing for your family for the future
Bespoke legal guidance is essential if you want to ensure both that you provide for your loved ones, and that you pass on your estate in the most financially efficient way possible.
There are numerous options available, including putting assets in trust for minor children, providing a life interest in property for a spouse or partner, creating a discretionary trust for a group of beneficiaries, such as grandchildren and other children within your family, and ensuring that you have the right executors, trustees and guardians named in your Will.
The right legal advice will ensure that your assets are protected for the future, and that your family has the support you want. You can also reduce the risk of disputes by talking through your plans and the reasons behind them with those involved.
Contact Us:
If you would like to speak to one of our expert estate planners, ring us on 01634 353 658 or email us at rob@pembrokewillwriters.com