Joint Tenancy

Mr. Mrs.

 “own” 100% of the home each.

Tenancy in Common

Mr. Mrs.

 “own” 50% of the home each.

Deed of Severance

Joint Tenancy – To Tenancy in Common

Normally, when a couple buy a property, they purchase as Joint Tenants and this means that they both own the whole of the property, and if one of them dies the property will automatically transfer to the other owner. There are various reasons why this may not be the best option for the parties concerned and it is often the case that by severing the tenancy into defined portions, arguments are avoided and the proceeds of sale will pass Whether the intention is to protect your share for someone other than your partner or simply to define the portions in anything other than an equal share, it is essential that you sever the tenancy on the property to avoid the automatic transfer to the joint owner. This is a simple process that we can assist you with.

Severance of joint tenancy from £295

What happens if I re-marry after the death of my spouse?

If you remarry after the death of a spouse and do not update your Will, your estate may become subject to “sideways disinheritance’. Essentially, this means the estate you built up with your former spouse passes to the family of your new one. In some cases, this can even mean the disinheritance your own children!

This is because marriage revokes all earlier Wills and, if not updated, your Will can be deemed invalid, whereupon your estate becomes subject to the Law of Intestacy.

A Property Protection Trust or a Flexible Life Interest Trust can be used to prevent the above scenario by ensuring that your intended beneficiaries still inherit your estate.

I live with my partner, but we are not married. What about Inheritance Tax?

Inheritance tax is a tax which is paid on the value of all you own when you die. The threshold above which you must pay 40% tax is currently £325,000 (known as the Nil Rate Band). For example, if your estate (everything you owned at the time of death, including your house value) was worth £425,000 then you would have a taxable estate of £100,000. This would give rise to a tax bill of £40,000 and therefore, less money going to your loved ones. The inheritance tax threshold for a married couple is £650,000 for the current tax year, providing they leave everything to each other on first death.

However, this is not good news for everyone as this system doesn’t help couples who are not married, and it doesn’t help those who don’t want to leave everything to their surviving spouse.

If you are an unmarried couple, you could benefit from the inclusion of a Nil Rate Band Discretionary Trust in your Will to allow your partner to make use of your £325,000.00 allowance.

Other Trusts available include:

  • Children’s’ Trust
  • Discretionary Trust
  • Disabled Persons Discretionary Trust
  • Asset Protection Trust (Lifetime)

For more information or to book your FREE will review, call me

Jeff Clarkson at A Save & Prosper today on 01908 590347 07973 283398

Alternatively, fill in the call-back form on this page.

Don’t let the Government decide who should benefit from your estate- write YOUR Will.

…Leave a legacy for your family!

Or lose it to your Local Care Authority!

A Common-sense approach to Estate Planning!