Dying without a will – the increasing costs

Writing a will is not a joyful task I grant you.  But most of us are aware of the importance of doing so.  We may procrastinate and dither but pen does need to be put to paper.  However it seems fewer and fewer of us get round to it.

The number of enquiries about people who have died without making a will has more than doubled over the past five years.  The UK’s Citizens Advice says the charity revealed 1,522 such queries in 2011, rising to 3,747 in 2015.

Dying without a will, or ‘intestate’ creates administrative and bureaucratic issues at an already emotional time for your remaining loved ones.  Dealing with paperwork, bank accounts and debtors can be scary.

It can also significantly diminish your estate with a large tax bill.  Any UK domiciled individual will be charged 40% on their estate over the nil rate band allowance of £325,000 in 2016/7.

An estate of £700,000 without a will and no pre-emptive tax planning could incur a tax bill of £150,000.  Make sure that your full estate goes where you wish by creating a will now instead of an emotional and financial burden on your death.