Preparing your legacy

If you want to be sure that your money and possessions go to the people that mean the most to you, you should make a will. Many people die without making a will (otherwise known as dying intestate). When this happens, the rules of intestacy come into play and your estate may not go to the people you want it to.

Although everyone should think about leaving a will, it's particularly important if you live with someone but are not married or in a civil partnership. If you are simply living together, your partner may not be automatically entitled to receive your estate.

What is legacy planning?

It is taking a look at your money and possessions and deciding how you would like them to be divided up when you die.

As an adult, you can write a will whenever you like. You can use a solicitor or professional will-writer to draw up a will or buy a do-it-yourself pack.

If you don't have a solicitor, you can find a local one at www.unbiased.co.uk.

What is inheritance tax?

It is a tax levied mostly on the estates of people who have died. If an estate is valued above the tax threshold, the people looking after your estate may have to pay inheritance tax of 40% on the amount over the threshold. The threshold in the 2011/2012 tax year is £325,000 for a single person and £650,000 for a married couple or civil partners.

You can find out if your estate is likely to attract inheritance tax by using our Inheritance tax calculator.

You can plan for inheritance tax with the help of a financial adviser. They can help you assess your situation and recommend the best course of action. If you don't have an adviser, you can visit www.unbiased.co.uk or call us on 0800 068 4076. We can only advise on our own products.

What happens to my financial assets when I die?

If you have left a will, more often than not your assets will go to the people you've identified in your will. However, there is the chance that someone may contest the will, in which case, the courts may get involved.

If you don't leave a will, your estate will be shared out under the rules of intestacy. In England and Wales, anything you own jointly, as joint tenants, will go the joint owner and your spouse or civil partner will take precedence over any other member of your family, for at least part of your estate. It's also worth remembering that if you die without leaving a will, only your spouse, civil partner and/or blood relations will be able to inherit your estate. So, if you want to leave something to anyone else, you must put your bequest in a will. The rules are slightly different in Scotland.

Things to think about

Talk to your loved ones about your plans. That way nothing will come as a shock to anyone involved.
You need to appoint at least one executor to control your estate when you die. You should give this some careful consideration.
You can pay a solicitor or professional will-writer to draw up a will or buy a do-it-yourself pack. You should think carefully about which option is best for you. A solicitor will be more expensive than doing it yourself, but a will from a solicitor is less likely to contain any mistakes that could give grounds for someone to contest it at a later date.
If you've released equity from your home, this may reduce the inheritance you leave, so you need to think about the consequences of this and discuss it with your family.
As well as considering making a will, you might want to think about taking out a plan to cover the cost of your funeral.
If you're concerned about your health, we can offer you cover for speedy diagnosis and health care.

Related FAQs

What is a will?: A will is a legal document in which you state what you would like to happen to your estate when you die. Your estate is all that you own in your sole name at the time of your death. This could include your house, money, investments, car, household and personal belongings. You can use your will to leave instructions on how your estate should be divided after you die. Your will may not cover possessions that you jointly own with another person as usually, these will automatically pass to the joint owner.
How do I make a will?: You can write your own will, but it's usually much easier and better to use a solicitor or a professional will-writer to draw up a will for you. This is likely to mean that your will has a more solid legal basis than if you do it yourself. If you don't have a solicitor, you can find a local one at www.unbiased.co.uk. You can also find more advice about wills at the Citizens Advice Bureau website.

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