A matter of life and death . Can you help?
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YoungBlueEyes wrote: »Also don't leave a person an amount of money, leave them a %.
Leaving a % is a recipe for problems. Leave specified amounts to the people you want to inherit them, making sure you indicate if these are free of IHT or not (if your estate is likely to be subject to IHT), then leave the rest to your preferred residual beneficiary/ies. If the estate goes up in value, rewrite your will - far from expensive if all you are doing is increasing each legacy.
If you use the % route, it's far messier and can take much longer to pay people out because their share won't be known until the very last moment - and if an unknown asset pops up further down the line, sharing it out is a pain. You will also need to provide estate accounts to everyone if you use the % route, because that technically makes them all residual beneficiaries.0 -
Leaving a % is a recipe for problems. Leave specified amounts to the people you want to inherit them, making sure you indicate if these are free of IHT or not (if your estate is likely to be subject to IHT), then leave the rest to your preferred residual beneficiary/ies. If the estate goes up in value, rewrite your will - far from expensive if all you are doing is increasing each legacy.
If you use the % route, it's far messier and can take much longer to pay people out because their share won't be known until the very last moment - and if an unknown asset pops up further down the line, sharing it out is a pain. You will also need to provide estate accounts to everyone if you use the % route, because that technically makes them all residual beneficiaries.0 -
Yorkshireman99 wrote: »A residuary beneficiary is one who inherits the residue of an estate I.e. what is left after the specific bequests have all been paid.
As you say, there is no difference between using fractions or percentages - but if everyone inherits a % (or a specified fraction), nobody inherits the residue because there isn't one (think it through!). Hence the suggestion that people should be left a 'sum certain' - makes life a lot easier all round.0 -
Yorkshireman99 wrote: »I beg to differ! What you have said is simply not correct. There is no fundamental difference between using percentages than fractions.
No, you've misread it. The post didn't suggest using a fraction (which is merely a percentage in another format), but leaving fixed amounts to named beneficiaries (or at least some of them). Having been through this loop many times I couldn't agree more.
The % route is especially problematic if the will needs to be varied after the death of the testator. Paying out the pecuniary bequests (fixed sums of money) means that the person receiving the bequest has no further claim on the estate, so at least you then need to think about/consult fewer people.0 -
As you say, there is no difference between using fractions or percentages - but if everyone inherits a % (or a specified fraction), nobody inherits the residue because there isn't one (think it through!). Hence the suggestion that people should be left a 'sum certain' - makes life a lot easier all round.
The problem with this is that a person's financial situation can change after they lose capacity to make a new will.
It would be galling if there was enough money left to pay the specific bequests but nothing for the residual beneficiary - so three charities get their £10k each but the deceased's child gets very little or nothing.0 -
As you say, there is no difference between using fractions or percentages - but if everyone inherits a % (or a specified fraction), nobody inherits the residue because there isn't one (think it through!). Hence the suggestion that people should be left a 'sum certain' - makes life a lot easier all round.0
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Don't get funeral cover - buy a funeral (reputable long lasting such as the Co-op). That way you can get what YOU want, all paid for. No need to worry if there is going to be enough left if things get difficult. If things ever get really bad financially then benefits will cut in a little earlier because the funeral is already off your savings total.
Whilst I like the Skipton they are not the people to be taking financial advice from as they are not independent & there will be something in it for them, after all that is their business.
I was watching the chase yesterday , and got a call from Skipton about whether I have had any more thoughts about doing a will .
I politely told them I would get back to them . It’ll be a solicitor that does it . Not them . Thanks for that0
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