LEAVING A LEGACY
No Will means no choice. An up-to-date Will ensures that your treasured possessions and other assets are passed on to the people and charities that YOU choose. Without a Will, the choice might end up in the hands of an administrator appointed by the courts. Your belongings might even end up in the hands of the Crown!
A Will gives you freedom of choice as to who inherits your estate and can help protect the future of family, friends and charities such as the Galapagos Conservation Trust.
Making a Will is the only way you can be sure that your wishes will be followed after you die. If you don't make one, part or all of your estate may go to people who you never intended to benefit. Not only that, Inheritance Tax legislation means that, if you don't prepare properly, a substantial part of what you leave behind may go to the State.
Under current legislation, if the estate you leave behind is less than £263,000 (the 'nil-rate' band) your beneficiaries will not have to pay Inheritance Tax. However, if you leave an estate worth more than £263,000, they will have to pay Inheritance Tax of 40% on anything beyond the nil-rate band. This is applicable on all your assets, including your house. So, for instance, if you leave an estate consisting of a house worth £275,000 and a further £25,000 of other assets (e.g. a car, shares, money in the bank, jewellery, etc) - which is a total estate of £300,000 - your beneficiaries will have to pay 40% of the amount over the nil-rate band, which works out at £14,800.
One way to avoid this is to leave your assets to your spouse, as they will be exempt from Inheritance Tax. However, this does not apply to couples living as 'partners' rather than married couples. Also, once your spouse dies, there can be no such exemption and his or her whole estate will be eligible for Inheritance Tax.
Another way to limit your estate's exposure to Inheritance Tax is to make a donation to charity - which will be totally free of tax and could reduce the inheritance tax burden on your loved ones. Of course, you can leave any amount to the charity.
It's easy to include the Galapagos Conservation Trust in your Will, but you should always consult a professional such as a solicitor or financial adviser to be sure your Will reflects your exact intentions and you understand the tax implications.
Before you call your adviser, take a few minutes to clear your thoughts and decide exactly what you want to do.
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