Buying a home is one of the biggest financial commitments that many people will make. Between securing a mortgage, arranging a survey and completing the purchase, a Will is often not at the top of your list of priorities. However, when you are in the throes of purchasing your new home, there is likely no better time to consider making a Will.
In reality, buying a property is one of the most important times to put a Will in place.
For many people, their home is their most valuable asset. A Will helps make sure it goes to the right people, in the way you would want, if anything were to happen.
We asked Alexandra, one of our Solicitors who specialises in the administration of estates and lifetime planning, to share her insight on why making a Will is so important when buying a home.
What happens if I die without a Will?
If you die without a Will, your estate is dealt with under strict legal rules known as intestacy. These rules do not take into account your personal wishes or circumstances.
For example:
- If you are married or in a civil partnership, your spouse is likely to inherit all or most of your estate.
- If you have children, they may inherit some of your estate, depending on the value.
- If you are unmarried, your partner does not automatically inherit anything, regardless of how long you have been together.
The concept of a ‘common law marriage’ is not recognised by law in England & Wales and would be treated as being unmarried.
Buying your first home together
This is especially important for first time buyers.
If you are buying a property with a partner and you are not married or civil partners, you might assume they would inherit your share if something happened to you. In fact, without a Will, your share could pass to family members such as parents or siblings instead.
This can leave your partner in a very difficult position, including the risk of having to share ownership of the property or even sell.
A Will gives you both clarity and security from the outset.
The way you own your property is important
When purchasing a property with another person, there are two main ways to own it:
Joint Tenants
Your share of the property Will pass automatically to the surviving owner if one person dies.
Tenants in Common
You each own a defined percentage of the property. This is often used if you make unequal contributions to the purchase. Your share of the property will pass in accordance with your Will (if you have one) or under the intestacy rules.
If you own your property Tenants in Common, having a Will is especially important to make sure your share goes where you intend.
The right time to put plans in place
Major life events are the best time to consider your planning and put a Will in place.
Purchasing property, moving in with your partner or starting a family are all key moments when your estate should be considered.
Putting a Will in place when you buy a house can give you peace of mind that your property and other assets will pass according to your wishes.
Key points to keep in mind
- Without a Will, your estate will be distributed in accordance with the Intestacy Rules.
- Unmarried partners do not automatically inherit
- Owning a property as tenants in common means that you need to decide what you want to happen to your share of the property when you pass away.
- Putting a Will in place now will give you peace of mind for the future.
How can we help?
At Poole Townsend, we support clients across Barrow, Ulverston, Kendal, and the South Lakes with clear, practical advice. Whether you are buying your first home or making your next move, we can help you put a Will in place that reflects your wishes and gives you peace of mind.
We offer an initial, no obligation appointment to talk through your circumstances and explain your options in plain English covering inheritance tax, and Wills and estate administration.
Call us on 01229 811811 to speak to our private client team.