Estate Planning For :
MARRIED COUPLES/CIVIL PARTNERS
WHERE THERE IS NO WILL, OR COUPLES HAVE ONLY A BASIC WILL/MIRROR WILLS IN PLACE, YOUR ASSETS ARE EXPOSED TO THE FOLLOWING RISKS:
- Care Costs
Following first death, should the surviving spouse/
partner need Care then the whole estate including the
family home would be assessed to pay for the cost
of that Care.
- Marriage After Death (MAD)
On first death all the assets are then solely owned by the
surviving spouse. What if the surviving spouse re-marries?
The inherited estate could be lost to the new spouse,
disinheriting your children.
- Creditors or Bankruptcy
If the surviving spouse were to be subject to Creditor
Claims/Bankruptcy then the inherited estate is fully
at risk.
ON SECOND DEATH THERE ARE FURTHER RISKS TO THE ESTATE YOU WISHED YOUR LOVED ONES TO BENEFIT FROM:
- Inheritance Tax (IHT)
Inheritance Tax would be payable on any amount in
excess of the couple’s Nil Rate Bands (NRB).
- Their own future Care Costs
If the inheritance has been passed to your chosen
Beneficiaries, these assets could later be assessed for
their own Care Costs.
- Divorce
If your children/chosen Beneficiaries are subject to
divorce proceedings, then half of what you intended
them to receive is at risk to Divorce settlements.
- Generational IHT
On second death the remaining estate is likely to be
directed by the Will to the Beneficiaries. This then adds
to the Beneficiaries’ estates and could impact their own
Inheritance Tax. (See key Features and Benefits Sheet 6:
Generational IHT)
- Creditors or Bankruptcy
Similarly, if any of your Beneficiaries are subject to
Creditor Claims/Bankruptcy then the inherited estate
is fully at risk.
