Remember To Make A Will After Buying A House

After all, buying a house is increasing your assets!

If you are buying a house then you are essentially increasing your assets.

Making a Will allows you to dictate who those assets, including any property, should pass on to, when anything happens to you.

Without a Will, you do not have that control and instead, your assets will pass under the Rules of Intestacy, which you can read more about here. Some things to consider if you are planning on making a Will after buying your home.

Co-ownership: are you going to own the property as joint tenants or tenants in common? As tenants in common, each one of you has a share of the property (and those shares can be either equal or unequal) and that means you can pass your share of the property on in your Will.

If you own your property as joint tenants then it works a little differently. As joint tenants, on your death, the other surviving co-owner will automatically become the sole owner of the property. For your Will, that means you need to be aware that you'll be unable to leave the property to a named beneficiary as joint tenants.

You can find more information on the difference between owning a home as joint tenants or tenants in common and the various legal implications in our post from Legal Studio.

Depending on who you would like to pass your property on to when you die can also determine several factors.

If you want your property to automatically pass to your co-owner then owning the property as joint tenants is the answer, as it means it will automatically pass to this person under the rules of Survivorship.

However, in the unlikely event that something happens to both of you at the same time and neither of you have a Will, then the problem of Intestacy law arises again. Making a Will avoids Intestacy law and if you want your property to pass to someone other than your co-owner then owning your property as tenants in common is the answer.

Finally, don’t forget that the Inheritance Tax or IHT tax threshold is currently set at £325,000. That means that there is no IHT tax to pay on estates less than this amount, however anything above it will incur the tax.

Publish date: 02/10/2017

Publisher: New Home Finder


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