Modern Families and Will drafting

Cohabitiation 

There are more than 6 million cohabiting couples in the UK and the number is rising. There are a number of issues that a lot of cohabiting couples are not aware of. For example, if one cohabiting partner dies without leaving a will, the surviving partner will not automatically inherit anything owned solely by their partner. Cohabiting partners also cannot access their partner's bank account if they die.

Divorce 

If you have commenced divorce proceedings but not finalised them then your Will is still valid. However, your former spouse is treated as if they “died” on the day the decree absolute is granted by the Court. That means any gift in the Will falls back into the residue for the benefit of the residuary beneficiaries. However, if you had left everything to your former spouse, then the effect is as if you had died intestate and the rules of intestacy once again decide how your estate is distributed.

If you die without having written a will you are “intestate”. The intestacy rules state that until divorce your spouse will receive a substantial sum. The amount will depend on whether or not you have children. After divorce the main beneficiaries will be your children, but if you don’t have children your assets will pass to your parents. If your parents are already dead your siblings will inherit, then more remote relatives.

Second Marriages 

We know that circumstances around a second marriage are more complicated than the first. There are often children from a previous relationship to consider, as well as assets you have acquired during your first marriage – for example property, savings and a pension pot. Upon your second marriage you will need to create a new Will. Many people will want to provide for their new spouse and children from their previous marriage, you can do this by placing a trust in your Will to safeguard the future of your new spouse and your children from your previous marriage.

Intestacy 

Nearly 60% of adults have not made a Will. By not making a Will you may be losing out on tax saving benefits. If you pass away without making a Will your estate will be dealt with by the intestacy rules. The intestacy rules do not cater for modern families, for example, a cohabiting partner cannot inherit under the intestacy rules nor can a step child who has not been legally adopted. 

If you are affected by any of theses issues, contact us for further advice.