Does Your Will Need Updating After the 2014 Budget?
Having a will should give you and your loved ones peace of mind when it comes to dealing with your affairs after you have passed away. However, most people draft their will once and never look at it again, creating chaos for those who are left behind.
Annuities or Drawdowns?
On retiring prior to the 2014 Budget, most people would have relied on a pension annuity
to see them through until they pass away. An annuity provides you with a regular income for life in exchange for a lump sum. However, after the recent announcement, more people may in fact be "drawing down" on their pension pots
, more or less meaning they just withdraw money from it.
One of the problems with drawing down on your pension is that there may be money from your pension left over after your death, unlike with an annuity. When you create a will, you should aim to include all of your assets
, whether that is money, property, trusts or gifts to family or friends.
In light of the budget and whatever pension option you choose, any surplus money may not pass to the people you intend it to go to. Furthermore, this additional money may leave your estate with an inheritance tax bill
, particularly where you haven't done any estate planning.
Seek Legal Advice
If you would like advice on how to amend your will in light of the Budget
or would like to consider your options when it comes to left over money from your drawdown pension, you should contact a solicitor. You may find that you may only need to make minor changes. However, for more complex cases, having the guidance of a solicitor is essential