Wondering what happens to your money after you pass away doesn’t have to be a morbid preoccupation — it’s just common-sense planning that provides peace of mind.
But over half of UK adults don’t have a will — and if you’re in this situation, your assets may not be shared according to your wishes.
So if you’re feeling perplexed about, pensions, wills or life insurance, don’t worry — our article explains what happens to your money when you die and the next steps you should take today.
In simple terms, your assets are divided into the following two pots:
When you pass away, here’s what usually happens to each:
Because most pensions don’t form part of your estate, they usually aren’t subject to inheritance tax — so they can be a tax-efficient way to leave money to loved ones.
But beyond these basic principles, the rules become more complex — it’s best to refer to the government inheritance tax guidance and seek advice from a specialist solicitor.
Making a will
Making a will is important for everyone, but if you want to make sure that your assets are passed on to them appropriately, it’s vital.
Understandably, most parents find it challenging to think about guardianship — but it’s probably the most important consideration of all.
‘Dying intestate’ means you’ve no choice about who benefits from your assets — this intestacy calculator allows you to work through the process.
Making provisions for what happens to your money after you die is a positive move — when you’re confident that the fruits of your hard work will benefit those you love most, you can live life to the full.
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