Do I need a will?

atush

sounds dangerous

zagfles

TBagpuss wrote: »

No it wouldn't. If you want the property to go automatically to the other person, you have to own as joint tenants, not tenants in common.

Yes and owning as beneficial joint tenants will mean probate (which can take months and loads of paperwork) isn't required, you might need it for other stuff but you could have joint bank accounts as well. Obviously you need to trust the other person completely not to spend your money now.

If you have any pensions these will usually pass outside of a will like jointly owned stuff - usually the pension company will let you make an expression of wish as to who you want to leave it to so make sure you do this. It's technically a "wish" rather than an instruction, which gives the trustees discretion as to who gets it but they should follow your wish unless there's a very good reason not to. Reason is that if it's at the trustees discretion then it doesn't form part of your estate as it would if it were an instruction they had to obey.

zagfles

Nick_C wrote: »

A Civil Partnership, or same sex marriage, would protect the person you are leaving your assets to. Incidentally, you don't have to be gay to form a Civil Partnership, and I have straight friends who are thinking of using CP to avoid death duties!

If it's not a genuine CP then wouldn't it be viewed in the same way as sham marriages to get someone UK residency?

Nick_C

What's a genuine CP? No requirement for it to be consummated, and infidelity is not grounds for dissolution. CP opens up so many possibilities for tax avoidance.

atush

zagfles wrote: »

Yes and owning as beneficial joint tenants will mean probate (which can take months and loads of paperwork) isn't required, you might need it for other stuff but you could have joint bank accounts as well. Obviously you need to trust the other person completely not to spend your money now.

If you have any pensions these will usually pass outside of a will like jointly owned stuff - usually the pension company will let you make an expression of wish as to who you want to leave it to so make sure you do this. It's technically a "wish" rather than an instruction, which gives the trustees discretion as to who gets it but they should follow your wish unless there's a very good reason not to. Reason is that if it's at the trustees discretion then it doesn't form part of your estate as it would if it were an instruction they had to obey.

One reason they may not follow your wishes is, if you had children you did not provide for elsewhere (and the pension uncrystalized) or you were still legally married to someone else etc. Not sure how often it ever happens though.

zagfles

Nick_C wrote: »

What's a genuine CP? No requirement for it to be consummated, and infidelity is not grounds for dissolution. CP opens up so many possibilities for tax avoidance.

Or presumably immigration scams too then? If people can form CP's for tax reasons then they could presumably do it if someone wanted to pay them a few grand for a British passport.

They would also have to support each other if they ever need means tested benefits as means testing considers married people and those in CP's jointly, so if one lost their job the other would be expected to support them.

System

The government response to the question of sham civil partnerships is entirely focussed on immigration. It appears that there is no suggestion that a civil partnership formed for tax reasons might be a sham.
Indeed, not only is marriage for tax reasons not grounds for declaring the relationship a sham, it is actually encouraged by statute and periodic government exhortations through tax concessions.

zagfles

Clifford_Pope wrote: »

The government response to the question of sham civil partnerships is entirely focussed on immigration. It appears that there is no suggestion that a civil partnership formed for tax reasons might be a sham.

If it can be a sham for one reason, it can clearly be a sham for another.

Indeed, not only is marriage for tax reasons not grounds for declaring the relationship a sham, it is actually encouraged by statute and periodic government exhortations through tax concessions.

Oh really? So if, let's say, a rich old man with several million in assets, with one son, decides to marry or form a CP with his son's girlfriend on his deathbed, HMRC wouldn't raise an eyebrow? Why is this sort of thing not happening all the time already then? Surely it should be part of everyone's IHT planning :rotfl:

elsien

Just wanted to say that if you're in a union then will writing can be one of the freebies they offer to members. Worth checking out.

zagfles

elsien wrote: »

Just wanted to say that if you're in a union then will writing can be one of the freebies they offer to members. Worth checking out.

Yes, but as with any will don't let them make their solicitors your executors. Always make a trusted relative/friend(s) the executors, they can always shop around for legal services if they need them. If you make a solicitor the executor you have no choice but to use them, you can't shop around, they'll often drag things out to increase their fees and it's hard/impossible to sack them if they're rubbish. Read the horror stories on the probate board!