another live for ever or die trying question

Uneducated_Archie

Hi,

Would someone please give me some advice regarding what my spouse/self would inherit from each other in the event of a death of one or the other of us?

We haven’t made a will but are thinking of making one. Broadly our assets are house (no mortgage) 175K, car couple of hundred, household goods – not much. We don’t have any children.

Money:

Joint names: 313K,
Self 225K – includes 35K ISA unit trusts
Wife 164K – includes 59K unit trusts

I’ve had a look on a couple of web sites (shown below) and find it quite confusing.

One Statement:

https://www.moneyadviceservice.org.uk/en/articles/a-guide-to-inheritance-tax

Married couples and civil partners are allowed to pass their estate to their spouse tax-free when they die. In other words, the surviving spouse can inherit the entire estate without having to pay Inheritance Tax. (my underline)

Another Statement: http://willdrafters.com/willfacts.html#Q2

Married with No Children but with Parents and/or Brothers and Sisters (whether of the whole or half-blood) or the issue of a deceased brother or sister

1) Your spouse gets:
a) car and house contents, plus
b) first £450,000 of your estate, plus
c) half of any excess over £450,000 outright

Am I correct that if money is deposited in an account in joint names and one of the account holders die, the other one could just keep the account open and withdraw the money as normal?

It's all a bit too confusing for me.

Tigsteroonie

Quick question - are you in England & Wales, or in Scotland? The law differs ...

Yorkshireman99

https://www.gov.uk/inherits-someone-dies-without-will
Tells you all.

Keep_pedalling

Why would some with your level of assets not already have wills in place? Forget what would happen if either or both of you die intestate and just sort out your wills and get LPAs in place while you are at it.

What would you want to happen to your estate if you both went together? As it stands whatever you wishes are, they will simply not happen.

Uneducated_Archie

Thanx everyone:

I live in England.

Keep_pedalling wrote: »

Why would someone with your level of assets not already have wills in place? Forget what would happen if either or both of you die intestate and just sort out your wills and get LPAs in place while you are at it.

What would you want to happen to your estate if you both went together? As it stands whatever you wishes are, they will simply not happen.

We haven't made wills, mainly because of the perceived difficulties in completing one. We don't know of anyone (within the family who would be competent enough to act as executor. (my father died intestate three years ago and my sister (lives 250 miles away from me) got lumbered with the paperwork, I couldn't ask her to do it. Our financial circumstances are forever changing - we close an account in this BS and open one in another etc and we couldn't be expected to make out a new will each and every time we did so.

I wouldn't like to think of some solicitor/bank employee charging £250 an hour to write to each and every bank/unit trust holder etc.

I speak to my sister on the phone she understands about these things but to be honest they are too difficult for me to understand. I feel sorry for her, after my father died (intestate), she took my aged mother (93 year old) into her house and sorted out father's estate/funeral/selling the house/house clearance etc. My mother's brother died recently (he did make a will - all of it goes to my mother). My mother has about 370K of her own money + what she'll get from her brother. She point blankly refuses to make a will, even though she saw the stress and strain my sister went through with father.

We know we should make a will. I spoke to the bank manager last week, he stated that he will get me an interview with a wealth counselor in the new year. In the mean time I'd like to have some background knowledge.

The link from Yorkshireman 99 was very helpful.

Thanx to everyone

poppystar

Uneducated_Archie wrote: »

Thanx everyone:

I live in England.



We haven't made wills, mainly because of the perceived difficulties in completing one. We don't know of anyone (within the family who would be competent enough to act as executor. (my father died intestate three years ago and my sister (lives 250 miles away from me) got lumbered with the paperwork, I couldn't ask her to do it. Our financial circumstances are forever changing - we close an account in this BS and open one in another etc and we couldn't be expected to make out a new will each and every time we did so.

I wouldn't like to think of some solicitor/bank employee charging £250 an hour to write to each and every bank/unit trust holder etc.

I speak to my sister on the phone she understands about these things but to be honest they are too difficult for me to understand. I feel sorry for her, after my father died (intestate), she took my aged mother (93 year old) into her house and sorted out father's estate/funeral/selling the house/house clearance etc. My mother's brother died recently (he did make a will - all of it goes to my mother). My mother has about 370K of her own money + what she'll get from her brother. She point blankly refuses to make a will, even though she saw the stress and strain my sister went through with father.

We know we should make a will. I spoke to the bank manager last week, he stated that he will get me an interview with a wealth counselor in the new year. In the mean time I'd like to have some background knowledge.

The link from Yorkshireman 99 was very helpful.

Thanx to everyone

You would not need to rewrite a will simply because you have opened or closed an account. A will deals with what happens to your assets at death not each individual account.

Your sister may feel obliged to deal with your estate should you both die intestate. Have you discussed this with her at all?

One way to reduce the stress is to ensure you have good records of where your accounts are and all of your other important affairs so that anyone dealing with the estate (will or not) can do it easily and efficiently and economically.

May be a case here for you to go and see a couple of solicitors to get advise on will making then decide from there especially if you are unsure of things. A solicitor who deals with wills will be better than a bank employee in this regard - in my opinion.

Get clear in your own minds too what you would like to happen to all your assets and possessions after you pass - this would be a good starting point and enable you to get more focused answers to questions.

It is so good that you are starting to plan.

Keep_pedalling

Forget the bank, they will charge you an arm and a leg, make an appointment with a local solicitor. A well written will will not require you update it every time you change your investments around. Dealing with an intestate estate is far harder than one where a good will is in place.

If you really have no one you feel could deal with your estate, then make each other your executors with a solicitor as a back up.

Your mother really should not be so selfish and get her affairs sorted out as well, but unfortunately some people just can't except the reality of their own mortality and are unmovable on this.

It also sounds like she does not need her bother's money, you need to look at the impact that could have on on her estate for IHT, as it may be possible to reduce this through a deed of variation, passing some or all this inheritance to her children or grandchildren.

Uneducated_Archie

poppystar wrote: »

You would not need to rewrite a will simply because you have opened or closed an account. A will deals with what happens to your assets at death not each individual account.

Thanx, that's a relief.

poppystar wrote: »

Your sister may feel obliged to deal with your estate should you both die intestate. Have you discussed this with her at all?

She lives 250 miles away. She's been looking after our mother for the last 3 years which has put 10 years on her life. She older than me (70).

poppystar wrote: »

One way to reduce the stress is to ensure you have good records of where your accounts are and all of your other important affairs so that anyone dealing with the estate (will or not) can do it easily and efficiently and economically.

May be a case here for you to go and see a couple of solicitors to get advise on will making then decide from there especially if you are unsure of things. A solicitor who deals with wills will be better than a bank employee in this regard - in my opinion.

Get clear in your own minds too what you would like to happen to all your assets and possessions after you pass - this would be a good starting point and enable you to get more focused answers to questions.

It is so good that you are starting to plan.

Thanx

Uneducated_Archie

Keep_pedalling wrote: »

Your mother really should not be so selfish and get her affairs sorted out as well, but unfortunately some people just can't except the reality of their own mortality and are unmovable on this.

You are quite right thanx.

Now you know why I left home at 15 and never went back, why my sister married at 17 and moved out and my brother went to school aged 5 and is still there aged 63.

Mother saw first hand the difficulties my sister had sorting out my father's estate but despite my sister urging her to make a will she refuses to do so. I don't think it's her own mortality more so that money is her God, and she wouldn't be prepared to spend money on a will.

Malthusian

Writing a Will is free. One sheet of A4 paper, one pen, sign it, get two friends who are over 18 and not in the Will to witness it, job done. Having to spend money is not the reason she refuses to make a Will.

What costs money is making sure the job is done properly, and it's worth the cost. (Getting it properly witnessed is the bit that often leads to failed DIY attempts.) Especially if you want to make your Will long and complicated (incidentally, don't make your Will long and complicated). However if you don't want to pay a solicitor that doesn't prevent you from making a Will.

Yorkshireman99

Malthusian wrote: »

Writing a Will is free. One sheet of A4 paper, one pen, sign it, get two friends who are over 18 and not in the Will to witness it, job done. Having to spend money is not the reason she refuses to make a Will.

What costs money is making sure the job is done properly, and it's worth the cost. (Getting it properly witnessed is the bit that often leads to failed DIY attempts.) Especially if you want to make your Will long and complicated (incidentally, don't make your Will long and complicated). However if you don't want to pay a solicitor that doesn't prevent you from making a Will.

This the very last thing to do given the circumstances.