It’s important to make a Will if you have assets, especially property. This is why it’s very common for people to make a Will when they buy their first home. Your house will likely be the biggest asset you ever own, and one that you have to work very hard for. You should make a Will to protect such a valuable asset so your family can benefit from it after you’re gone – they’ll thank you for it! In this guide, we’ll explain why you should make a Will if you own a home, and discuss how a Will is beneficial whether you’re married or not.
Married
If you’re married your house will likely be passed onto your spouse even without a Will, especially if they’re also named on the deeds. However, if you have children you may want to shield a portion of your estate to be given to them in the future, otherwise, if your spouse was to ever remarry, their new husband or wife would be entitled to your children’s inheritance.
You should also stipulate in your Will what you would like to happen to your property if you and your spouse were to die. Without a Will, the state will decide, which can lead to painful family disputes and broken relationships. Aside from the ownership of your house, there are many other reasons you should make a Will if you’re married, so click here to learn more.
Unmarried Partners
If you share a house with your partner but they are not on the deeds, you may want to make a Will to ensure the property passes to them on your death. This is especially important if you have children together, because otherwise your house will pass to your children and your partner won’t be entitled to any of it. Your partner could be left without legal ownership of the family home and without the financial support they need to bring up your children. In some cases, parents have had to sue their own children just to claim a fair share of the family estate – leading to broken relationships and painful family disputes. You can make a Will to prevent your family from suffering this sad fate, and to protect the loving bonds you’ve worked so hard to create.
Jointly Owned Property
There are two ways you can jointly own a property, and each has different implications if one of the owners was to die.
Joint Tenants
If you own your home as ‘joint tenants’ you each own an equal share of the property and if you were to die your share would pass onto the surviving ‘tenant’ regardless of any Will.
Tenants in Common
If you own your home as ‘tenants in common’, you each own a specified share of the property, which may or may not be equal. If you were to die, your share would likely pass to the surviving ‘tenant’ if you are married. If you’d like to ringfence some of your share for your children or other family or friends, you’ll need to stipulate this in your Will. If you are unmarried and you would like your share to automatically pass to your surviving partner, you’ll also need to make a Will to stipulate this.
Inheritance tax
Inheritance tax becomes payable if your estate is worth more than a certain threshold, at which point it’s taken at 40%. Owning a property is likely to put you above the threshold, but making a Will can reduce the amount of inheritance tax due. If you are married, a Will can also allow you to make full use of your and your spouse’s inheritance tax allowance. The average family without a Will loses around £10,000 to inheritance tax, so it’s well worth making one!
The Bottom Line
If you own a house it’s important you make a Will. Not only can you ensure your loved ones receive a fair share of your estate and protect your children, spouse or partner, but you can also potentially reduce inheritance tax.
Having a Will can take the pressure off your family when you pass away because your wishes are clear. It prevents painful family disputes that can damage the loving bonds you’ve worked so hard to create.
At Michael Usher Wills & Estate planning we’ve been helping our local community for over 30 years. Making your Will is one of the most important things you’ll ever do, so it’s essential to make a legally binding document that will stand up in court. We’re regulated members of the Institute of Professional Willwriters, so you can be confident our service is of the highest quality. Our friendly team is always happy to chat with you for free about your Will and answer any questions. Call us on one of the numbers below or book a FREE consultation here. We look forward to helping you protect your assets, your family, and your legacy.
Camberley: 01276 691979
COVID-19 Update
Due to the current situation, you are now able to make a Will with us remotely for your own safety and convenience. Read the article below to find out how this works.
