Going to make a will

dzug1

Loughton_Monkey wrote: »

Most wills are pretty easy to 'execute' [as opposed to the alternative of dealing with an intestate death] and they can always get legal advice where/when required.

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Having dealt with 3 intestate estates I wouldn't say it's that difficult - exactly the same logical process.

The only difficult thing is dealing with relatives who think you have carte blanche or who disagree with the rules of intestacy. No different to dealing with relatives who don't like the terms of a will.

jamesd

Consider what happens if you die, spouse remarries, spouse dies, their new partner remarries and has a child with their new partner. Will the money you left still be used to look after the interests of your child? What if the new spouse hasn't made a will or adopted your child and dies, will the intestacy rules provide any money for your child?

Trusts have uses. Protection of this sort is one of them.

polly2002

so does anyne know what living trust is? is the same as a will?

CLAPTON

jamesd wrote: »

Consider what happens if you die, spouse remarries, spouse dies, their new partner remarries and has a child with their new partner. Will the money you left still be used to look after the interests of your child? What if the new spouse hasn't made a will or adopted your child and dies, will the intestacy rules provide any money for your child?

Trusts have uses. Protection of this sort is one of them.

actually best to think about what you want to happen if your spouse dies

would you want to own only half the house and half the assetts?
could you trust yourself to look after the interests of your child?
would you want the freedom to remarry, have other children, travel the world without being burdened by a trust that restricts your financial freedom

then think about what you want to happen if you die first and what you wish for your wife and child

jamesd

polly2002, for more about living trusts look at United States web sites. It's a US term.

dzug1

polly2002 wrote: »

i have been told a will is not worth the paper it is written on? is this true, I have also been told about a living trust, does anyone know anything about this?

You really don't want to believe everything you are told, usually by people who at best half understand what they are telling you.

There are two circumstances when a will is not worth the paper it is written - one is where the will is invalid (not properly signed, made when incapable, married since it was made, etc) and the other is where you have failed to make reasonable provision for dependent relatives. They can make a claim to the court for such provision - and it appears that courts are becoming more willing to allow such claims than they were. Even then most of the will would stand

Other than for interest forget about living trusts - they are an American concept and don't exist here. You could set up something on similar lines with a Lasting Power of Attorney and a Discretionary Trust but tax and property laws here render it a non starter unless you are worth millions - and probably even then.

margaretclare

jamesd wrote: »

polly2002, for more about living trusts look at United States web sites. It's a US term.

So, one of these (a) could not be made by a solicitor here and (b) would not stand up in our law even if made.

For interest, what is the basic idea behind them?

Really, all you want to be sure of is that your nearest and dearest (spouse and under-age children) have a roof over their head and can pay the bills when you die (whichever of you dies first). And a few of the other bases are also covered i.e. what if you both die at same time, what if the survivor wants to move (too many painful memories) etc.

getmore4less

Your current assets are £550k.

also consider things like life cover, potential inheritances asset growth more savings etc.

The current joint nill rate band is £650k so you are well on the way to be thinking about IHT.

With only one potential inheritor at this stage there is the risk they could end up well over the single nill rate band.

dzug1

Not an expert on them but the main advantage seems to be that they avoid the need for probate on moderately and larger sized estates.

You put your assets in a trust (which you can revoke at any time) and on your death they pass straight to the beneficiaries.

I suspect you could legally construct such a thing here, maybe not an exact equivalent, but something fairly close - but our tax laws don't treat trusts very favourably (eg 50% tax on some) so there would normally be no advantage in doing so.