Alongside this many more have been injured or made ill. The provisional figure for the number of workers fatally injured in 2006/07 is 241. This corresponds to a rate of fatal injury of 0.80 per 100,000 workers. Worrying statistics.

Death can be premature and unexpected. No one likes to think about what happens when they die and it is easy to put off making a Will. But if you don’t make a Will your family could suffer distress, worry and even costly legal bills, which are not the ideal legacies for a family suffering a bereavement. If you don’t write a Will the Government will effectively write one for you. It is amazing how many people die without leaving a Will, and in some instances their loved ones end up with nothing. Zahra Siddiqui has outlined the position below.

If you die without a Will it is the Administration of Estates Act 1925 which determines who will inherit your estate. The result is not always one which you would expect or welcome.

If you leave a surviving spouse and children then your spouse gets all of your personal items, such as jewellery, household effects etc. and the first £125,000 worth of assets. The rest of the estate is divided into two halves. One half is used to provide your spouse with an income for life (and will then pass to your children outright after your spouse has died) and the other half passes to your children straightaway. Children include illegitimate and adopted children, but not stepchildren.

If you leave a surviving spouse but no children then your spouse gets all of your personal items and the first £200,000 worth of assets. The rest of the estate is again divided into two halves with one half passing to your spouse outright and the other half passing to other relatives, namely your parents, or, if they have died, your brothers and sisters, but if there are no brothers and sisters then to other distant relatives.

The point to note is that the distribution of your estate will be governed by these statutory rules and those people you wish to benefit may end up getting nothing.

However, a Will is not only important to ensure that your estate passes to your loved ones, it can also be important for other reasons, such as tax.

In the event of death, inheritance tax (IHT) is payable on the value of your estate over and above £300,000 (the current nil rate band). Relief is available in respect of certain business interests and agricultural property but other assets such as your house, savings and investments are all taken into account.

Gifts to a spouse are exempt but after you and your spouse have died, when the estate passes to children or to other beneficiaries, there can often be a significant tax charge.

For those individuals facing an IHT charge on death there are many things which can be done. In particular, a married couple with an estate in excess of £300,000 should put in place appropriate Wills to keep the tax charges on death to a minimum. There are several strategies which can be built into the Wills to save IHT. For instance, a married couple can get the benefit of two nil rate bands (i.e. £600,000) simply by including the right sort of wording in their Wills; and if the estate includes business assets or agricultural property then there are other provisions which can be included in the Wills to save even further IHT. Regrettably, it is still true to say that many married couples fail to include these tax saving provisions in their Wills and as a result they are leaving their children with large amounts of tax to pay.

Apart from IHT you may have other concerns such as providing protection for your beneficiaries in the event of a divorce/bankruptcy or providing them with flexibility to manage their own finances after you have died. You may have a disabled child who needs to have their inheritance managed in such a way as to preserve their entitlement to state benefits. All of these concerns can be catered for if you have the right sort of Will in place.

Should you require any assistance with the drafting of such an agreement, then please do not hesitate to contact Zahra Siddiqui at George Davies Solicitors on zahrasiddiqui@georgedavies.co.uk or on 0161 234 8861.

Disclaimer

The content of this article does not constitute legal advice. You should always consult a suitably qualified lawyer for professional advice about any specific legal matter of concern to you. George Davies Solicitors, its partners and staff do not assume any responsibility for information contained within this article and disclaim all liability relating to such information.

George Davies Solicitors

George Davies was highly rated, in the North West, in 11 different categories of the 2006 Legal 500 review and in Chambers and Partners UK Directory. They specialise in all aspects of commercial law and boast a specialist niche Construction team with experience in a full spectrum of construction law services. The team was commended in the Legal 500 for its breadth of expertise, efficiency, and ability to provide specialist advice. Chambers specifically mention its achievements in Construction. Catherine Kay can be contacted on 0161 234 8861 or emailed at catherinekay@georgedavies.co.uk. www.georgedavies.co.uk

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