Tom Selby, senior analyst at investment platform AJ Bell, comments on the incoming changes to inheritance if you don’t have a will:
“The amount people automatically receive if their spouse or civil partner dies is increasing from next month, adding £20,000 to the money handed to them if their other half dies with no will. However, the change will likely flag to many that they don’t get handed their husband, wife or civil partner’s entire estate if they die. Many couples mistakenly believe that all assets will be handed to their other half if they pass away without a will – which is partly why so many put off making one.
“While assets held jointly, including money in joint accounts and personal possessions, will be handed over to someone’s spouse or civil partner, anything held in their own name will be split between them and any children they have. The change from 6 February means that in England and Wales your partner automatically gets £270,000 of your estate, rather than the previous £250,000. However, after that any remaining cash is split 50:50 between the husband, wife or partner and any children of the person who died.
“Many more couples are living together but not getting married or entering into a civil partnership, and are leaving themselves in a precarious position if they have not drawn up a will. If an unmarried person dies, regardless of how long they have been with their partner, all their estate will go to their parents, or their brothers and sisters if their parents are no longer alive. If they have children the estate will automatically go to them.
“While family members may be sympathetic to any surviving partner and redirect money to them, that’s by no means guaranteed. Writing a will is the last thing anyone wants to tackle, particularly as no one wants to think about the prospect of them dying, but it could be the most valuable thing you and your partner do.”
