FAQ's

Executors and Trustees Can my Beneficiaries be my Executors ? What's the difference between an Executor and a Trustee ? Do I have to appoint a Solicitor or Bank as my Trustees ? Does it matter if my Executors live abroad ? How many Executors can I choose ? What does an Executor have to do ? Should my Guardians be Executors ? Guardians Who can automatically become a Guardian ? Gifts and Legacies Do I have to list everything that I own in my estate ? Do Gifts and Legacies have to be under a certain value ? Can I gift to charities ? Can I set age limits when gifts can be received ? What is the Inheritance Tax rate ? How to avoid Inheritance Tax in your will My husband and I leave everything to each other in our Wills, but if we die at the same time everything goes to out two small children. My concern is that our joint assets would result in a hefty inheritance tax bill for them. How can we avoid this? What is the difference between owing a home as joint tenants and tenants in common ? What happens if i don't have a will ? Does marriage revoke a will ? What happens to my assets if i don't have a will ? What happens if we live together as “Man and Wife” and one of us dies ?

Executors and Trustees Can my Beneficiaries be my Executors ? Yes they can if you want them to. Today it is often common that those who will get the estate have a role to play in the organising of the estate before it is given. back to top What's the difference between an Executor and a Trustee ? In most estates today, it is common to appoint the Executors as Trustees. The main difference is that trustee is the person responsible for making the decisions that maintain the estate whilst it is held on trust before it is given to the beneficiaries, and the executor is the person that carries out (or executes) the actions and wishes of the Trustees during this time. back to top Do I have to appoint a Solicitor or Bank as my Trustees ? You can appoint anyone you like. It is likely however, that when your estate is going through Probate, that you will in some part require some professional assistance. Our advise is to choose people you absolutely trust and ensure that the Will includes a statement that empowers them to employ any professionals that have not already been nominated. back to top Does it matter if my Executors live abroad ? No, although it is always prudent to have some executors in the country in which you are residing. back to top How many Executors can I choose ? You can have as many Executors as you like, but the Law only allows a maximum of four to act at the same time. back to top What does an Executor have to do ? It is difficult to go into great detail here, but the main role of an Executor is to carry out the wishes of the deceased’s estate. back to top Should my Guardians be Executors ? It is very common for the guardians to be executors. It normally follows that if you trust someone to take care of your children, then they should have some form of access to the assets of the estate to provide for your children. back to top Guardians Who can automatically become a Guardian ? Only the birth parents of the child or children have 'parental responsibility'. If you make a Will 'Parental Responsibility' can be given through appointment of Guardianship to people of your choosing. back to top Gifts and Legacies Do I have to list everything that I own in my estate ? No, if you want specific objects, collections or even amounts of money to go to particular people, then yes you should list these. However, what you do not identify in your estate (everything else not listed - whatever it is) is dealt with through distribution of the Residue. back to top Do Gifts and Legacies have to be under a certain value ? Not at all, A gift can be any value you like (e.g. £5,000 or a house etc.) back to top Can I gift to charities ? Yes, but we need to know the full Name, address and Registered number of the charity. All gifts to charities are tax free - so they can be used to reduce any Inheritance Tax liability. back to top Can I set age limits when gifts can be received ? Yes, this is what Trustees are for - to see that the gifts you leave are preserved as best as possible until they should be given at the time you have specified. back to top What is the Inheritance Tax rate ? NIL RATE BAND 2008/09 - £624,000 husband/wife or civil partners' combined allowance. All other assets taxed at 40% unless exemptions apply All lifetime transfers not covered by exemptions and made within seven years of death will be added back into the estate for the purpose of calculating the tax payable at the rate at death. This may then be reduced by taper relief. Charge on Gifts Within 7 Years of Death Years before death 0 - 3 3 - 4 4 - 5 5 - 6 6 - 7 % of death charge 100% 80% 60% 40% 20% Main Exemptions Transfers between husband and wife and/or civil partners The first £3000 of lifetime transfers in any tax year Gifts of up to but not exceeding £250 p.a. To any number of persons Gifts made out of income that form part of normal expenditure and do not reduce the standard of living Gifts in consideration of marriage to bride and/or groom as follows: up to £5000 by a parent, £2500 by a grandparent or £1000 by any other person Gifts to charities whether made during lifetime or on death back to top What is the difference between owing a home as joint tenants and tenants in common ? If you own a home as joint tenants, you both own the whole property, not merely an individual share. When one of you dies the survivor automatically inherits the deceased's share and becomes the sole owner. As a tenant in common, you own only that specific share - not necessarily one half - and you can dispose of it in any way you think fit. Tenants in common is a much more flexible way of holding property than joint tenants in particular with respect to Inheritance Tax planning and ensuring that your children will inherit at least half of the property if the surviving spouse remarries. back to top   What happens if i don't have a will ? Does marriage revoke a will ? If a will is made subsequent marriage will make the current Will invalid, unless it has been written in expectation or contemplation of marriage. Marriage also refers to entering into a formal Civil Partnership. back to top What happens to my assets if i don't have a will ? When a person dies without having left a valid will, he or she is said to have died "intestate". The law sets out the rules which apply in that situation. Reference to marriage also refers to formal Civil Partners. Married person with children Spouse gets everything up to £125,000 & personal possessions. Anything remaining is divided into two: Half to the children at 18 or earlier marriage. Half in trust during spouse's lifetime - he or she gets the income. On spouse's death this half goes to the children. If a child predeceases, leaving children, his children will take his share between them. Married person, no children If there are parents, brothers or sisters of the whole blood, nephew or nieces: Spouse gets everything up to £200,000 & personal possessions. Anything remaining is divided into two: Half of this goes to spouse Half to parents. If no parent is living then it goes to brothers or sisters or their children. Married person, no parents, brothers or sisters of the whole blood, nephew or nieces Spouse takes whole estate. Unmarried person with children Estate goes to children at 18 or earlier marriage. If a child predeceases, leaving children, his children take equally Unmarried person with no children Estate goes to parents If none, then to siblings of the whole blood or their children If none, then to siblings of the half blood or their children If none, then to grandparents If none, then to uncles and aunts of the whole blood or their children If none, then to uncles and aunts of the half blood or their children If there are no parents, siblings (whole or half blood), issue of siblings, grandparents, uncles and aunts (whole or half blood), or issue of uncles or aunts, estate goes to the Crown (or to the Duchy of Lancaster or the Duke of Cornwall). back to top What happens if we live together as “Man and Wife” and one of us dies ? The law does not recognise “cohabitees” and so it is essential that you both have a Will otherwise on the death of one partner the survivor is unlikely to inherit anything. back to top