In the UK people can choose who they want to benefit from their estate by making a will.

If you fail to make a will then that there are laws of intestacy which will determine who gets what.

So it is very important that you make a will to ensure that your assets are distributed to the people you want to benefit, benefit and the people that you don’t want to benefit, including the taxman, don’t benefit.

What is the Law of Intestacy?

When you die without a will you are declared an intestate person and a series of tests are applied to your relationships to determine who gets what from your will.

The first question that is asked is are you married? If you are not then the tests become do you have children? if not do you have parents? and so on and so forth.

Imagine that you had a long term partner and you died intestate, they would be automatically excluded from your assets even if you intended them to inherit part of your estate.

There are all sorts of issues that could arise with you being intestate such as assets ending up in the hands of estranged siblings, or a cruel aunt.

All these problems can be avoided by making a will and declaring exactly who you want your assets to go to.

Inheritance Tax

We have been covering making wills, inheritance tax and creating family trusts over the last month or so.

Here is some further reading on the topic:

Using a Family Trust to Save Inheritance Tax & Probate Fees

How A Trust Can Protect Your Family

Do Expats Need More Than One Will?