The importance of making a will for Gay and Lesbian people
Although many people accept that it is important to make a Will, still only one in three people actually have a valid Will. Making a Will is a crucial part of sound financial planning for everyone. At the very least, it allows you to ensure that your assets pass upon your death to your desired beneficiaries and to distribute your wealth in a tax-efficient way. For gay and lesbian people, consideration to making a valid Will is paramount.
If there are no children, consideration needs to be made regarding who you want to benefit from your assets when you die. You may want to leave some or all of your estate to your partner, but if you are not in a civil partnership, then you will need to express your wishes in your Will, otherwise your partner may not be legally entitled to any proportion of your estate, thus leaving them with a potentially serious financial problem.
If you do not make a Will the law will decide who benefits from your estate. It is a common misconception that if you die leaving a civil partner that your partner will automatically receive all of your assets. Without a valid Will, the intestacy rules would apply. This may leave your partner having to share your estate with others (your parents, siblings or remoter family members), whom you may have never intended to benefit. This could leave your civil partner in a situation of having to pursue a claim through the courts with possible acrimonious disputes and legal fees.
Other issues to consider include Inheritance Tax Liability, if you are in a civil partnership, transfers to your civil partner are free of inheritance tax, but for those who have not ‘tied the knot’, your partner may face a hefty inheritance tax bill upon your death.
Guardianship should also be addressed as naming guardians within your Will ensures that minor children are cared for by the person(s) appointed by you upon your death.
Legal and Contract Services Ltd are a specialist estate planning company who can offer advice and guidance and sound professional advice according to your needs.
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