Without a will intestacy laws and inheritance tax will dictate how an estate is split
These statistics have been revealed in Will Aid’s 2012 survey and show that people in the UK are still not fully aware of the ramifications of dying intestate. However, specialist solicitors for wills are campaigning to ensure that the message regarding the importance of making a will is kept in the public eye.
Even celebrities occasionally fall foul of intestacy laws and author Stieg Larsson and broadcaster Jill Dando are just two whose estates passed to their fathers rather than to their partners as a result of them not having made wills.
Researchers for Unbiased.co.uk have revealed that “procrastination” is the main reason why people do not make a will, with around a third of those who said they hadn’t made a will saying that they will get around to it “when they get older”.
For effective estate planning and inheritance tax management it can be devastating to not have made full provision for an estate upon death as more and more people each year die without realising that their personal estate exceeds the threshold for inheritance tax – presently standing at £325,000 for single people or £650,000 for married couples – and this could have far-reaching effects on what loved-ones will actually receive after the government takes its cut.
Currently inheritance tax stands at a rate of 40 per cent on any assets after deducting debts and expenses such as funeral costs.News