What happens if we die

Mojisola

relaxtwotribes wrote: »

Where a Will has been made by both of the deceased parties then the rule of the younger surviving the elder prevails.

Thus if the husband is the elder of the two the estate will pass under the terms of his Will (often to the surviving spouse) and then the estate will be distributed in accordance with the wife’s Will in this example.

A well-written will should have a clause which says that the spouse (or other main beneficiary) only inherits if he/she survives for, say, 28 days.

This avoids this problem.

pphillips

Mojisola wrote: »

A well-written will should have a clause which says that the spouse (or other main beneficiary) only inherits if he/she survives for, say, 28 days.

This avoids this problem.

Be very careful with this kind of clause because:
1. its effect is to cause the loss of the transferable nil rate band.
2. a mirror will could accidentally cause the other beneficiaries to benefit twice .

relaxtwotribes

pphillips wrote: »

Be very careful with this kind of clause because:
1. its effect is to cause the loss of the transferable nil rate band.

Do you mean that the transferability is lost, rather than the actual nil rate band?
And, if the two deaths did occur within 28 days of each other, what benefit would the transferability have anyway? A good '28 day survivorship' clause would usually go on to say who gets the inheritance instead.

pphillips

relaxtwotribes wrote: »

Do you mean that the transferability is lost, rather than the actual nil rate band?
And, if the two deaths did occur within 28 days of each other, what benefit would the transferability have anyway? A good '28 day survivorship' clause would usually go on to say who gets the inheritance instead.

There are two different bands, there is the nil rate band (£325,000) and the transferable nil rate band (£650,000).
Okay lets say for example that A & B are married and, they have a survivorship clause. A dies first and B dies a few days later. Under the terms of the survivorship clause B inherits nothing and both estates pass to C. A has assets of £500,000 and B has assets of £100,000. C pays inheritance tax on A's estate at 40% on £175,000 (£500,000 - £325,000) but would have paid nothing if B had inherited first as then the transferable nil rate band would have applied.

raees94

It will pass to your kid only when he is above 18 otherwise it will be the property of government and transferred to your baby after he is 18.

pphillips

raees94 wrote: »

It will pass to your kid only when he is above 18 otherwise it will be the property of government and transferred to your baby after he is 18.

Not correct ,it will only become government property if you die intestate and you have no surviving relatives who become entitled to your estate under the rules of intestacy.

Ziggazee

Wow....don't people complicate things with, often unnecessary, advice on here.


OP - just go and see a solicitor and draw up a will. Please don't rely on the advice from people on here, which is often taken (and misinterpreted) from the internet.