The government has announced that next year the rules governing intestacy will be changing. From 1st Feb 2009, the ‘statutory legacy’(the amount going to your legal spouse or legal civil partner) will increase:
- Where there are children the legacy increases from the current £125,000 to £250,000
- Where there are no children the legacy increases from the current £200,000 to £450,000.
To quote Justice Minister Bridget Prentice:- ‘Married couples and civil partners should not assume that when their spouse or civil partner dies, they will automatically be entitled to everything. It is up to individuals to make sure that their wishes are respected by making a will.’ 'My message to people is, don't
leave it to chance. Make sure your loved ones are properly provided for by leaving a will.'
Act now to protect large pension pots
People with very large pension pots need to register excess funds over £1.65m quickly or risk huge tax bills when they come to draw their pensions. Anyone with pension assets of more than the lifetime allowance set by the government could end up paying tens of thousands in tax if they do not take steps to protect it.
Those with assets over the lifetime allowance were allowed until April 5 2009 to register the excess with HMRC, in what was seen as a fair measure to avoid having to pay back tax relief. Once the amount is registered under what is being called “transitional protection”, the excess will be protected from any tax.
Pension savings left unregistered will be hit with 55 per cent tax on the amount over £1.65m. There are long delays in processing the information required to register the pension benefits so it is best to act sooner rather than later.
Click on the following links for more advice on intestacy changes or for Will Advice