Protecting family Inheritance

Will trusts allow you to pass on your property within a trust structure – which can have a significant impact on your estate.

A will trust – also known as a testamentary trust – is created within your will to allow you to protect property you hope to pass on to your family.

Leaving property in a will trust

Will trusts are mainly used by married couples and civil partners and are set up in conjunction with splitting ownership of the family home, to ‘tenants in common’, so each partner has 50%. Rather than leaving this to each other, they leave it to a trust, whiceh comes into being on the death of the first partner.

Until recently, nil-rate band will trusts were a common way of saving inheritance tax (IHT). A couple potentially liable could split their estate into halves, both below the nil-rate band.

However, since 2007 the ability to transfer unused IHT allowance ended the need to make this type of will trust for most couples, although they still ring fence assets against potential fees should you or your partner go into long-term care.

 

Leaving property in a Will trust

Another reason for setting up a will trust is to avoid ‘sideways disinheritance’. This occurs when the first partner dies, leaving children from the marriage who might reasonably expect to inherit some of the family estate in due course.

If the surviving partner remarries and fails to make provision for their children in a new will, there’s a risk that everything will go to their new spouse instead.

A will trust uses up some or all of the first partner’s IHT nil-rate band in a way that leaving everything to your partner doesn’t. It could also create a capital gains tax (CGT) liability for trustees.

Will trusts are mainly used by married couples and civil partners and are set up in conjunction with splitting ownership of the family home, to ‘tenants in common’, so each partner has 50%. Rather than leaving this to each other, they leave it to a trust, which comes into being on the death of the first partner.

Until recently, nil-rate band will trusts were a common way of saving inheritance tax (IHT). A couple potentially liable could split their estate into halves, both below the nil-rate band.

However, since 2007 the ability to transfer unused IHT allowance ended the need to make this type of will trust for most couples, although they still ring fence assets against potential fees should you or your partner go into long-term care.

 

 

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We fully understand that although we try and cover as much as we can on our website, there may be questions that we have not covered, if so feel free to call our trained staff on 01933 588 990.

What happens if you do not make a will

why you should make a willIf you were to die without having a valid will in place, you are almost gambling that your final wishes are going to the correct place.  

In this situation, your estate will be distributed under the rules of intestacy.  The rules of intestacy are a predefined set of rules that govern how your estate will be shared out.

For example, you could be in a relationship but you are not married or in a civil partnership.  If your partner were to pass away, you can’t inherit under the rules of intestacy.

Any children of the person who passed away would inherit the estate.

If there are no surviving relatives who can inherit under the rules of intestacy, the estate passes to the Crown.

What our customers say

five stars
"Very happy with the service that we have received from Nene Legal for our joint wills. Simon dealt with us in a personal and professional way. Simon is not pushy and wants to do the very best for his clients."
Ian Fall
five stars
"Simon and the team at Nene Legal we're brilliant in helping us arrange our will's. Having just purchased our first house, we knew we needed to write a will, but had no idea how to go about it - Simon was brilliant in talking us through the various options and made the whole process simple and stress free. Thanks again - we'll certainly be recommending you to our family and friends!"
Ashleigh Clements
five stars
"Simon at Nene Legal was absolutely amazing when it came to writing our joint will. He has acted professionally and exercised real patience with our situation. I couldn't recommend him and the Nene Legal team highly enough. Their pricing is excellent and I just can't fault their service. Thank you again for all your help!"
Verity Wilkie

The will writing process

will writing processWhen you have decided who the executor of your will is going to be and how you would like your estate to be distributed, it is time to start the will writing process.

We will send you a questionnaire in advance of your appointment with us.  It will contain some key questions to consider.  For example, any pensions you may have, the balance of your mortgage (if applicable) and any particular wishes that you would like to include in your will.

During our appointment, which will generally last for approximately one hour, we will discuss this questionnaire with you and answer any questions you may have.  We will then complete the form with you, ensuring that we are capturing your wishes exactly as you would like them to be.

After this appointment, we will take away all the documentation and, normally within 14 days, we will send you a draft will.  You can then review this draft and make sure there are no anomalies.  You can also include anything that you may have thought of following our initial appointment.

When you have confirmed your will, we will send you all the documentation via email.  Your will can then be printed out and signed by you.

We can store your completed will securely, if you would like us to.  Contact us for more details.

Writing a Will, isn’t just a nice to have.  It can often arguably be one of the most important things you can do for yourself and your family. Not only can a will legally protect your spouse, children, and assets, it can also spell out exactly how you would like things handled after you have passed on. One of the most important documents you could ever sign.

There are many issues that keep parents awake at night whether its an overdose of high sugar foods that we feed to our children, getting them the latest Iphone or Hatchimal or worrying that our utter failure to get them to bed at a reasonable hour will result in our final failure as parents.  However the thing that should be keeping  us awake at night is the one thing that 

The number of enquiries about people who have died without making a will has more than doubled over the past five years, Citizens Advice says.  The charity recorded 1,522 such queries in 2011, rising to 3,747 in 2015, along with a rise in queries about problems executing wills.  According to a YouGov survey, nearly two thirds of the British adult population do not have a will.