Expect The Unexpected - Have You Got The Right Will?

• Published date: 13 July 2020
• Subject Matter: Tax, Family and Matrimonial, Inheritance Tax, Wills/ Intestacy/ Estate Planning
• Law Firm: DMH Stallard
• Author: Mr Stuart Price

Given the events of recent months, there should be no need for a reminder that nothing is certain, nor can we predict what's around the corner. The majority of people understand the importance of having a Will, but Wills should be kept up to date to ensure that they 'keep pace' with changing wishes, financial and family circumstances. The consequences of not doing so can in some cases be as disastrous as having no Will at all.

Sometimes, a simple Will just isn't enough. Whether your priority is asset protection after you are gone, or passing assets along in a tax efficient manner, you should consider including appropriate trusts in your Will. Some examples include:

• A nil rate band trust. If you are married or in a civil partnership, a nil rate band trust ring-fences '325,000 from the possible bankruptcy, remarriage or care costs of your surviving spouse or partner.
• Life interest trust If you are in a second relationship, you may be torn between providing for your new spouse or partner and ensuring your children inherit your estate. This type of trust works to provide your spouse or partner with security, whilst ensuring that the assets eventually pass to your children.
• Discretionary trust. If any of your family members are vulnerable or you're concerned about your children's relationships, this trust provides the people looking after your estate with the discretion on how and when to distribute assets. Children can also use the flexibility offered by this type of trust for their own estate planning - often...