Crosswords2 mins ago
When someone dies intestate
A friend and colleague (who is not computer literate) has asked me if I could find out what would happen in his situation.
He has been married for over 20 years and they have a grown up child,he has no other children,but his wife has 2 children from a previous marriage
Their assets include a house worth about �125,000 and other assets would make this up to �150,000.He wants to make a will but his wife doesn't
His question, whoever dies first ,would all the estate go to the surviving partner or would the children have any claim?
Someone told him that as the estate is over �125,000 the children would have a claim,this worries him as he or his wife would either have to sell the house or give away their life savings they have saved for their retirement.
Does the �125,000 rule mean their joint worth or just the worth of the partner who dies (i.e. 50% of their total worth)
I know the answer is to make a will but just in case she carries on refusing he would just like to know
Thanks in advance
He has been married for over 20 years and they have a grown up child,he has no other children,but his wife has 2 children from a previous marriage
Their assets include a house worth about �125,000 and other assets would make this up to �150,000.He wants to make a will but his wife doesn't
His question, whoever dies first ,would all the estate go to the surviving partner or would the children have any claim?
Someone told him that as the estate is over �125,000 the children would have a claim,this worries him as he or his wife would either have to sell the house or give away their life savings they have saved for their retirement.
Does the �125,000 rule mean their joint worth or just the worth of the partner who dies (i.e. 50% of their total worth)
I know the answer is to make a will but just in case she carries on refusing he would just like to know
Thanks in advance
Answers
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Hello fiesata
I had to sort out someone's will, which was done a day before he died. No one else was involved, just his wife of thirty years
It was a nightmare. I don't even want to think what it may be like for your friend.
Tell him, as fast as he can, see a solicitor, and pay for a half hour of legal advice. But, make sure he asks around and gets one that has a good reputation
Old Salt
I had to sort out someone's will, which was done a day before he died. No one else was involved, just his wife of thirty years
It was a nightmare. I don't even want to think what it may be like for your friend.
Tell him, as fast as he can, see a solicitor, and pay for a half hour of legal advice. But, make sure he asks around and gets one that has a good reputation
Old Salt
Now, I'm not sure if the law has changed very recently - there has certainly been talk about it. If it has the ceiling is �200,000, not �125,000.
We need to know how your friend and his wife own their house. If they own it jointly (both names on the Title Register or Deeds) AND own the beneficial interest as Joint Tenants (most couples do) then they both own the house wholly and not half each. Better explained here:
http://www.inhousewills.co.uk/html/severance_o f_tenancy.html
If they both have their names on the Title, and own it as Joint Tenants, then the surviving spouse will 'get the house' for sure.
If the other assets are in joint names, or owned by both, then loosely they each own half - �75,000, well under the intestacy rules.
The problems will really kick in if only one owns the house, or the beneficial interests is on a 'tenancy in common' basis where each owns a divisible share.
Here's a straightforward guide:
http://www.youngandpearce.co.uk/intestrules.ht m
We need to know how your friend and his wife own their house. If they own it jointly (both names on the Title Register or Deeds) AND own the beneficial interest as Joint Tenants (most couples do) then they both own the house wholly and not half each. Better explained here:
http://www.inhousewills.co.uk/html/severance_o f_tenancy.html
If they both have their names on the Title, and own it as Joint Tenants, then the surviving spouse will 'get the house' for sure.
If the other assets are in joint names, or owned by both, then loosely they each own half - �75,000, well under the intestacy rules.
The problems will really kick in if only one owns the house, or the beneficial interests is on a 'tenancy in common' basis where each owns a divisible share.
Here's a straightforward guide:
http://www.youngandpearce.co.uk/intestrules.ht m
The answer to this question depends upon the type of joint ownership of the house. The couple might either be 'joint tenants' or 'tenants in common':
http://www.firstrungnow.com/joint-ownership/jo int-tenancy-tenants-in-common.aspx
If they are joint tenants, the surviving spouse would automatically take control over the full value of the house. (That would happen even if there was a will to the contrary. A joint tenant can't leave 'their share' of a property to anyone other than the other joint tenant). The residual estate would then only be worth a maximum of �25,000 and surviving spouse would automatically inherit it all.
If they are tenants in common, the surviving spouse only automatically keeps 'their' half of the house's value (i.e. �62,500). However the estate of the deceased person would then only be worth a maximum of �87,500 (assuming that he/she was the owner of everything except the house), so it would still be below the �125,000 limit and the surviving spouse would still inherit everything.
However, if the value of the house was to rise significantly prior to the death of the first partner, there would come a point (under tenancy in common) where the children would start to inherit part of the estate. (Only the son would inherit anything if the husband died first, but all 3 children would inherit equally if the wife died first). This would not occur if there was a joint tenancy.
Chris
http://www.firstrungnow.com/joint-ownership/jo int-tenancy-tenants-in-common.aspx
If they are joint tenants, the surviving spouse would automatically take control over the full value of the house. (That would happen even if there was a will to the contrary. A joint tenant can't leave 'their share' of a property to anyone other than the other joint tenant). The residual estate would then only be worth a maximum of �25,000 and surviving spouse would automatically inherit it all.
If they are tenants in common, the surviving spouse only automatically keeps 'their' half of the house's value (i.e. �62,500). However the estate of the deceased person would then only be worth a maximum of �87,500 (assuming that he/she was the owner of everything except the house), so it would still be below the �125,000 limit and the surviving spouse would still inherit everything.
However, if the value of the house was to rise significantly prior to the death of the first partner, there would come a point (under tenancy in common) where the children would start to inherit part of the estate. (Only the son would inherit anything if the husband died first, but all 3 children would inherit equally if the wife died first). This would not occur if there was a joint tenancy.
Chris
Thanks Ethel and Chris excellent replies
I know they bought the house together when they married and both names are on the deeds so they should be OK - except for the house they have some savings and two cars which would come to well below the �125,000- I'l get back to you when I have spoken to my friend tomorrow
I know they bought the house together when they married and both names are on the deeds so they should be OK - except for the house they have some savings and two cars which would come to well below the �125,000- I'l get back to you when I have spoken to my friend tomorrow
There's an IHT calculator here...
http://www.thisismoney.co.uk/inheritance-tax-c alculator
It also has some useful info on with the amount for married couples. More info here...
http://www.direct.gov.uk/en/MoneyTaxAndBenefit s/Taxes/InheritanceTaxEstatesAndTrusts/DG_4016 736
I was going to raise the joint tenants/tenants in common issue as Chris did above regarding the house.
Are you able to check which one? The Land Registry should be able to tell you if you ring them and tell them your title number. There's an office finder here...
http://www.landregistry.gov.uk/www/wps/portal/ !ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3gfN1MTQ wt381DL0BBTAyNjY0cTE19PQwN3M6B8JB55A2J0G-AAjoR 0-3nk56bqF-SGRpQ7KioCALdDEtQ!/dl2/d1/L2dJQSEvU Ut3QS9ZQnB3LzZfTEY1NDE4RzdVOVVUNTAyMzNBNDRNSTE wRzU!
If you can't find it then you can download a copy the your title, provided it is registered, from here for �3...
http://www.landregisteronline.gov.uk/
It is possible to sever a joint tenancy into tenants in common and leave your share of the house to whomever you choose in your will.
http://www.lawontheweb.co.uk/jointtenants.htm
There is some info on the ru
http://www.thisismoney.co.uk/inheritance-tax-c alculator
It also has some useful info on with the amount for married couples. More info here...
http://www.direct.gov.uk/en/MoneyTaxAndBenefit s/Taxes/InheritanceTaxEstatesAndTrusts/DG_4016 736
I was going to raise the joint tenants/tenants in common issue as Chris did above regarding the house.
Are you able to check which one? The Land Registry should be able to tell you if you ring them and tell them your title number. There's an office finder here...
http://www.landregistry.gov.uk/www/wps/portal/ !ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3gfN1MTQ wt381DL0BBTAyNjY0cTE19PQwN3M6B8JB55A2J0G-AAjoR 0-3nk56bqF-SGRpQ7KioCALdDEtQ!/dl2/d1/L2dJQSEvU Ut3QS9ZQnB3LzZfTEY1NDE4RzdVOVVUNTAyMzNBNDRNSTE wRzU!
If you can't find it then you can download a copy the your title, provided it is registered, from here for �3...
http://www.landregisteronline.gov.uk/
It is possible to sever a joint tenancy into tenants in common and leave your share of the house to whomever you choose in your will.
http://www.lawontheweb.co.uk/jointtenants.htm
There is some info on the ru
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