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INTESTACY RULES
If you die without a Will the new rules announced on the 9th October 2007 with regard to the ability to transfer the unused portion of the nil rate band of the first to die to the estate of the second to die, can only be effective where the individual has executed a valid UK Will passing the entire estate to the surviving spouse.
GENERAL INFORMATION
As a result of an increase announced from January 2009 our illustrated graph has been updated.
Find out how the new rules may affect you by checking our Illustrated Graph
Passing the entire estate to the surviving spouse qualifies for spouse exemption and is the reason why assets passing on death to a surviving spouse are not subject to IHT. If the entire estate does pass to the surviving spouse it will not be necessary to utilise the available nil rate band allowance. It therefore remains unused.
If you do not make a Will, your surviving spouse may only become entitled to a portion of your estate where your children and other relatives survive. Children and other relatives are classed as non-exempt beneficiaries and any nil rate band allowance available on the first death may be used up entirely or partially on these assets passing.
If you die intestate and your nil rate band has been utilised on the first death, it cannot be transferred to the survivor's estate and used to reduce the estate of the survivor on his or her eventual demise.
DON'T WASTE THE NIL RATE BAND ALLOWANCE
MAKE SURE YOU PREPARE FOR THE FUTURE
To find out more about the new rules view our News Update section
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