State could decide who raises your children!
Published on 29th October 2009
At Planet Contractor we try and avoid tabloid style headlines but in this case its very difficult to cover a subject without spelling out a horrific reality. Worryingly over half of the Uk population dont have a will, often because they assume that their estate (and children) will pass to the nearest relative when they die. Unfortunately, this couldn't be further from the truth.
If you die intestate (i.e. you dont have a will) then the courts decide who gets what. This means that the wealth that you have worked so hard to build up is no longer guaranteed to pass to your nearest and dearest but even more worryingly your wishes for the care of your children is out of your control. This is why writing a will is vital for Contractors of any age and why making sure you get it right is crucial to make sure that your estate ends up with your intended beneficiaries.
A troubling new trend is that people are perhaps living in a false state of security thanks to the popularity of DIY wills. You can go online or into your local supermarket and buy a will writing 'pack' with which to ultimately determine your childrens future. However, just as you would not try to sail the Atlantic in a dinghy you made yourself, setting about the complex business of writing a lasting legal document yourslef is potentially disasterous.
If you don't leave a Will -
- The State decides who will inherit your property and look after your children
- Your assets could pass to the wrong people
- Your spouse is not automatically entitled to receive everything and may receive far less than you wish
- An unmarried partner is entitled to NOTHING
- Your children could be placed into care or with foster parents
If we help you prepare a Will -
- Your wishes will be carried out to the letter
- The burden on those you choose to distribute your estate is eased
- Upset and hardship caused when relatives are coping with grief is alleviated
- IHT can be reduced or avoided completely
Even if you have already made a will it is crucially important to check that it is up to date as requirements change as we go through life. Important milestones such as buying a house, getting married, becoming a parent or simply changing your job to that of a Freelancer will affect your will and its important to keep it up to date to ensure your wishes are carried out when the time comes.
Inheritance tax - dont get caught out
In addition to the lack of control over your estate, every year, billions of pounds are also handed to the treasury instead of benefitting the heirs of those who worked so hard to build it. Inheritance tax is, however, often referred to as a voluntary tax simply because certain entirely legitimate measures can be taken to minimise or completely avoid the liability.
Some people misguidedly leave an inadequately drafted Will, such as "all to my spouse," others make the error of preparing no Will at all. Such mistakes may expose your assets to this Countries most dreaded tax but also leads to the danger of loved ones not receiving their rightful Inheritance.
Specialist Trusts can be set up to diminish Inheritance Tax or eliminate it altogether, trusts can put assets beyond the reach of creditors and even from Local Authorities for Long Term Care.
Specialist Trusts can protect
- Assets for your heirs
- The value of your business
- Death in Service Benefits
- Your Pension Fund
- Your assets if you are non-domiciled or living outside the UK
Leave it to the professionals
There are some things in life that just aren't worth doing yourself; fitting a kitchen, medical surgery and writing a will to name just a few. The good news is that the expert advisers we work with at ContractorFinancials are on hand to help you make sure your will is up to the job so you can concentrate on deciding who your beneficiaries will be and who best will look after the children if the worst should happen. With our help, you can also make sure that your hard earned contract income ends up in the right hands rather than the tax mans.
News and Articles
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- How does the pension cap affect Contractors? After the Budget announcement that tax relief on pension contributions will be capped for higher rate tax payers, we urge higher earning Contractors to proceed with caution when it comes to pension investment…
- Is your life covered? As a Contractor, you miss out on the 'death in service benefit' offered to permanent employees but you can still protect your family…
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