Life - Articles - Value of a Will as new rules come into force

The Government has increased the amount that the surviving spouse can automatically inherit if their partner has children and dies without leaving a will. This is going up by £20,000 to £270,000 in England and Wales.

 Below we highlight the value of a will and the value of a flexible trust when it comes to protection policies, in response to the changes to intestacy rules that come into force today
 Elaine Cruickshank, Tax and Trusts Manager at Aegon comments: “While this might sound like a financially attractive reason not to have a will, we would always advocate that individuals should put a will in place. A will sets out how someone wants the ownership of their assets to pass when they die and as a result, it can help to make sure that adequate provision is made for the individual’s nearest and dearest. A will can help with trust and inheritance tax planning and enables those with young children to name a guardian for their children should the worst happen.
 “From a protection point of view if an individual puts their life policy in a flexible trust for the benefit of their family, then any claim proceeds on their death won’t usually form part of their estate. This means that the claim proceeds won’t be subject to the intestacy rules and the trustees can decide to pass some or all of the benefits to the surviving spouse should they need access to the proceeds.”

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