FREQUENTLY ASKED QUESTIONS AND ANSWERS
Children
Q: Can children under 18 inherit?
A: Children cannot inherit until they reach
the age of 18; below this age, the funds are held in Trust. If you think 18 is too
young for your children to inherit a large sum of money, within a Will, you can
specify that they do not receive the capital sum until a later age. They will, however,
be entitled to receive any income from the trust fund as soon as they reach 18.
Apart from this, the Trustees decide what income and/or capital can be used for
the benefit of the children e.g. school fees.
Divorce
Q: I'm divorced -- what will happen with my
existing will?
A: Getting divorced does not cancel a Will,
but a gift to a divorced spouse lapses, unless a contrary intention appears in the
Will.
DIY wills
Q: Can I make my own will?
A: Yes, you can. But there are significant risks
in doing so -- which you will not be around to sort out. It could mean substantial
legal fees to put things right -- quite apart from the upset and confusion it could
cause those you leave behind. You should consider: A Will that is not clear under
the law is open to challenge and your wishes may be overruled. A Will not made under
the correct procedures can be rendered invalid. When making your own Will you may
overlook some possibilities and unforeseen changes in circumstances.
Executors
Q: Can an executor be a beneficiary?
A: Yes. Often the main beneficiary is one of
the executors.
Q: Do I need a professional to act as executor.
A: No, but it is wise to appoint a professional
alongside a friend or relative. This enables the burden of the work to be shared
with a professional who can advise. It also ensures that, if the executor is unable
to carry out their duties for any reason, there is the support that is needed.
Guardians
Q: Do I need to nominate guardians in my will?
A: You do not have to, but a Will can be a convenient
place to name a guardian. Without nominated guardians, the courts will decide who
will look after your children.
Intestacy
Q: What happens if I die with no will?
A: Many people erroneously think that their
Estate will go to their partner when they die. This isn't necessarily the case.
For Example, an unmarried partner will be entitled to nothing. Even a spouse may
not receive the entire Estate and worryingly, may not receive enough to maintain
their current lifestyle.
Inheritance Tax
Q: Will I incur Inheritance Tax (IHT)?
A: If your estate is worth more than £312,000
(twice this for couples) it will be subject to the rules governing IHT. The first
£312,000 of a single person's estate estate will pass free of IHT. This is known
as the Nil Rate Band personal tax allowance. The remainder will be taxed at 40%
(e.g. if you have an estate worth £412,000, you will pay tax on £100,000 (£40,000
tax). A married couple with assets over £624,000 can save tax by both setting up,
in their Wills a Discretionary Trust of a sum of money equivalent to the Nil Rate
Band personal tax allowance, in favour of their spouse and children. This is explained
in more detail in Help Notes within the Will Questionnaire itself. Importantly,
gifts to a registered charity are also tax free. There are other tax allowances
for gifts of agricultural or business interests, but they are beyond the scope of
these notes. If you have such interests and would like to find out if you can take
advantage of these allowances, you should consult a solicitor or accountant.
Marriage
Q: Do married couples need two Wills?
A: Both of you need to make a Will. A pair of
similar Wills are called 'Mirror Wills.' Getting married or remarried cancels a
previous Will unless the Will expressly states otherwise.
