In summary: –
• there’s no change for estates below £250k
• no change for co-habitees (they’re still not going to get a bean unless they write a Will)
• surviving spouses/civil partners now get everything where there are no children
• life interest now abolished for married couples and civil partners with children but the surviving spouse/civil partner gets all of first £250k and half of everything else, children get half of everything over £250k at age 18, no risk of children losing inheritance if adopted after parent’s death
In respect of co-habitees and single parents, according to the Office for National Statistics there are roughly 3 million cohabiting couples with children and 1.8 million single parents with, say the National Consumer Council, something like only 17% of them having a Will let alone an LPA. Thus, it doesn’t take a great leap to work out just how badly off their survivors or children would be if they died intestate or were unable to speak or act for themselves.
Whether you are married, in a civil partnership, living with someone or simply on your tod, this is a good opportunity to contact your IFA to write more life cover (in trust of course) as well the perfect chance to make sure that your Will is reviewed; assuming, that is, that you have one in the first place – 50% of people don’t.
It’s a perfect time to ask about LPAs and other means of protecting your assets.