Why make a Will? The perils of intestacy
For all the benefits and life changes that modern technology and medicine has brought us, human mortality remains (for now) one of life’s two great certainties (along with taxes, of course). Many people put off planning their affairs, but it is something we ought to address at least once every few years. Unfortunately, recent studies have shown that only 38% of adults in the UK have made a Will. When a person passes away without a Will, it is called intestacy. Under the intestacy rules, the assets of the deceased are divided between the surviving relatives according to the formula set by legislation. In some cases, this may make little difference, but in many cases, it will mean two things:

• Additional inheritance tax that could have been avoided; and
• Loved ones – including unmarried partners or stepchildren – may not be adequately provided for

For example, if a person had a partner with whom they were not married or in a civil partnership, the partner would not receive any part of the estate if that person died without a Will. Wills are therefore a vital tool in ensuring that our wishes are followed and the right people or charities receive what we would want them to receive. In certain instances, dying without a Will can even mean that all of the person’s assets go to the Crown, under the rules of bona vacantia.

The tax advantages of making a Will
Wills are also an important part of making sure our assets and investments are held efficiently, from a tax perspective. Inheritance tax must be paid when a person dies with an estate that is worth more than £325,000, or £500,000 if they left their home to direct descendants due to the residence nil rate band. Due to the prices of housing in the Southeastof England, many homeowners will have an estate with a value that exceeds this. Careful tax planning and Will drafting by our solicitors can help to keep the inheritance tax liability as low as possible.

Why use a solicitor for Probate?
Probate is the process of enabling personal representatives to administer the estate of a person that has died. Where the deceased person left a valid Will, the Will names one or more executors to carry out their wishes. If they did not make a Will, or the Will failed to name executors, the Non-Contentious Probate Rules determine who should act as administrator of the estate. Either way, the process involves determining the value of the estate, paying any inheritance tax which is due, and applying to the Probate Registry for a grant of probate or grant of letters of administration, to enable the personal representative (whether as executor or administrator) to distribute the person’s estate. After the grant, the estate must be distributed in accordance with the Will, or where applicable, the intestacy rules.

There is no legal requirement to use a solicitor when applying for probate or letters of administration, and some people manage to navigate the process by themselves. However, there are two clear advantages of using a solicitor:

• Tax efficiency
• Time savings and administrative efficiency

Use a solicitor to save tax
Administering an estate is time consuming and can be complex. It combines working through the rules of probate and understanding how inheritance tax works. Will solicitors are used to dealing with probate and estate administration know how to ensure the correct calculation is made for inheritance tax, making use of all of the exemptions that apply to an estate. This is important, because failing to use an exemption can cost you thousands of pounds in additional and unnecessary tax being paid.

Use a wills solicitor to improve your well-being
Studies have shown that people who pay for a service to save themselves time improve their sense of well-being more than when those use that same money to buy goods. The process of administering an estate is more than just time-consuming. It can also be fraught with emotion and stress. Solicitors can deal with all aspects of the process, making sure you, the executor, are protected from personal liability, and giving you the space to grieve for your lost loved one.

To discuss making a will or obtaining advice on probate, contact our wills solicitors using the form below. Our wills solicitors can help with intestacy, inheritance tax, the nil rate bands and obtaining a grant of probate or letters of administration.