Rocketing property prices see family rifts over wills soar to highest level since 2007
Rocketing property prices have led to an 83 per cent jump in the number of families going to court in order to contest wills.
There were 178 disputes about legacies heard in the High Court in 2014, compared to 97 in the previous year, according to law firm Hugh James.
The number of disputes is at its highest level since the peak of the property boom in 2007. Families are now more likely to contest a will because the recent rise in property prices means they stand to lose more.
Arguments: Families are more likely to contest a will because of the recent rise in property prices
This week, property firm Rightmove said the average UK house price could hit £300,000 by the new year.
Matthew Evans, head of contested wills at Hugh James, says: ‘It is important to be aware of the value of the assets you are leaving to be certain the way that they are divided reflects your intentions.’
What you need to think about when making a will
There are four main areas:
Assets: Everything you own - property, savings, possessions and debts.
Beneficiaries: Who gets your assets. If beneficiaries are under 18, assets are placed in trust. Money can be advanced for costs like university fees or driving lessons with the Trustees’ agreement.
Executors: Responsible for managing and administering your estate, including dealing with tax forms. You can nominate a Professional Executor but check their costs in advance and read the small print.
Guardians: Who you want to bring up any children under 18. If guardians aren’t named, the court decides. Age is one factor to consider (don’t just automatically choose your parents). Also, think about who you trust to raise your child in the way you want.
The other big thing to consider.... Inheritance Tax
Those whose estates will get hit by inheritance tax need to be very careful about how they write their wills and who they leave money to.
Inheritance tax is charged at 40 per cent above an individual's allowance of £325,000 for their estate (officially known as the nil-rate band).
Unused allowances can be passed between married couples and civil partners, effectively doubling the allowance to £650,000.
If the total value of your estate - all your assets added together - takes you over the threshold, you need to take particular care with your will.
A change announced in the recent Summer Budget is being phased in over the next five years, but will eventually boost an individual’s tax-free allowance with an ‘additional main residence allowance’ of £175,000.
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