Co-Op Legal Will Writing

Tom_Hendo

Hi All

Me and my partner are mid 30s, but as we are not planning on ever getting married we wanted to ensure we have some form of legal protection so want to get a very simple mirror will created.

I have looked into the options, and Co-Op Legal seems a midway point as a regulated service, but not as expensive as going to private solicitor etc. Is there any downside to using a service like that, that I need to be made aware of. 

Also if there is anyone on this form with will writing knowledge, we are looking for a two tier will. If one of us passes, everything goes to the other. But once we are both passed, we want a split between our families (For example if I go first, she gets everything. If she then goes then all remaining assets get split 50% to my family, 50% to hers). Is that how a two tiered will can work? 

FlorayG

In order to leave things to other people 'after you partner dies' then you can't leave things to your partner; because then they belong to your partner, who can do anything they want with them. You can't specify in your will 'after they die everything goes to...' because after YOU die none of those things belong to you to have a say in what happens to them.
You will need to set up a trust for the split between families with your partner having lifetime USE of said trust. For that, you need a solicitor who knows exactly what they are doing because that's not going to be a 'simple mirror will'
I don't think there is any such thing as a 'two tier will'

Keep_pedalling

Sorry to go off on a tangent, but do either of you have more than £325k in assets? 

Tom_Hendo

FlorayG said:

In order to leave things to other people 'after you partner dies' then you can't leave things to your partner; because then they belong to your partner, who can do anything they want with them. You can't specify in your will 'after they die everything goes to...' because after YOU die none of those things belong to you to have a say in what happens to them.
You will need to set up a trust for the split between families with your partner having lifetime USE of said trust. For that, you need a solicitor who knows exactly what they are doing because that's not going to be a 'simple mirror will'
I don't think there is any such thing as a 'two tier will'

Interesting and really helpful. Thanks for replying. 

Tom_Hendo

Keep_pedalling said:

Sorry to go off on a tangent, but do either of you have more than £325k in assets? 

Not currently no, our main asset is the house which would be less than that each. 

Emmia

Tom_Hendo said:

Keep_pedalling said:

Sorry to go off on a tangent, but do either of you have more than £325k in assets? 

Not currently no, our main asset is the house which would be less than that each. 

If you get to the £325k threshold it is worth reconsidering the marriage (or civil partnership) question. Do either of you have death in service benefits? Are these assigned and do they require a marriage or CP to pay out to a survivor?

Tom_Hendo

Emmia said:

Tom_Hendo said:

Keep_pedalling said:

Sorry to go off on a tangent, but do either of you have more than £325k in assets? 

Not currently no, our main asset is the house which would be less than that each. 

If you get to the £325k threshold it is worth reconsidering the marriage (or civil partnership) question. Do either of you have death in service benefits? Are these assigned and do they require a marriage or CP to pay out to a survivor?

We both have Death In Service benefits assigned to each other, neither require marriage we did some research in that (My company used to, but changed the policy). If we get to £325K what becomes the benefit, is it the tax free benefit of inheritance when passing from one spouse to the other or is there something else? 

Emmia

Tom_Hendo said:

Emmia said:

Tom_Hendo said:

Keep_pedalling said:

Sorry to go off on a tangent, but do either of you have more than £325k in assets? 

Not currently no, our main asset is the house which would be less than that each. 

If you get to the £325k threshold it is worth reconsidering the marriage (or civil partnership) question. Do either of you have death in service benefits? Are these assigned and do they require a marriage or CP to pay out to a survivor?

We both have Death In Service benefits assigned to each other, neither require marriage we did some research in that (My company used to, but changed the policy). If we get to £325K what becomes the benefit, is it the tax free benefit of inheritance when passing from one spouse to the other or is there something else? 

On the first death all money/assets goes to the spouse even if it's over £325k without IHT. (I'm assuming you're both leaving everything to the other person). The IHT that may be due is paid on the second death.

If you're not married/CP then IHT (if over £325k) needs to be paid on the first death (and the second) - so if the majority of the money is tied up in a house, it would need to be sold (or the money found to settle the bill from elsewhere).

tacpot12

Not a real downside of using a mid-level legal services provider, but just something to be aware of: mirror wills are often used where the legal situation is simple, and solicitors will often offer a discount for writing 'mirror' wills, but this offer will be typically not be available when the legal sitation is more complicated, e.g. where a trust needs to be set up.

Keep_pedalling

Even if on the first death your estate is below the NRB there can still be advantages in being married or in a civil partnership. 

If you die first with a total estate of £325k and leave that to your partner, they then die with an estate of £650k then there is going int to be a significant IHT liability for there estate. A married couple in that situating would get spousal exemption on the first death and the unused NRB could be transferred to their estate and no IHT on the second death.