Have you willed your home?

Purchasing a house is often referred to as the greatest financial commitment of an individual's life and rightly so with the average house price now exceeding £175,000 and the average detached house over £277,000.

I would imagine that very few people are contemplating dying as they buy their property but owning such a valuable asset creates a need to ensure that a will is in place to protect the survivors. In most cases any outstanding mortgage would be cleared by a life assurance policy, boosting the value of the estate.

This is such an important issue that this article merely serves to highlight the potential problems. The law around intestacy changes regularly and professional advice should be sought in every instance.

So what are the consequences of a householder dying without making a will?

This very much depends on the total value of the estate, whether the deceased was married and the way in which the ownership of the house was legally established.

Joint tenants or tenants in common?

If you buy as a couple and own the house as joint tenants then effectively you both own all of the property in the eyes of the law. If one of you were to die, the property reverts to the survivor.

If you are tenants in common you each own a stated percentage of the property (usually 50/50) and what happens to your share of the property is determined by a will or by probate in the event of your death.

Inheritance Tax threshold - the level at which Inheritance Tax is due

The law was changed recently to allow married couples to use each others 'spare' allowance in the event of death, effectively raising the threshold from £300,000 to £600,000 and removing the majority of estates from what is often seen as a punitive tax. Transfers between spouses do not incur a tax charge and the surviving spouse has the benefit of the increased allowance for the future.

If you are single then you have only the one allowance and, as we have already seen, the value of the average detached house gives rise to an automatic liability.

In either case it is important to realise that, without a valid will in existence, the disposal of the estate of the deceased is determined by the laws of probate which can be unexpectedly restrictive - whether married or not.

Without a valid Will, a surviving husband or wife may get far less than their spouse would have wanted; and if the couple is unmarried, the surviving partner may get nothing at all and lose their home. By making a Will, people can determine precisely who will inherit their property and make specific gifts to friends, relatives, loved ones and charities. People can also give clear instructions as to who should look after their children, should there be no surviving parent.

The importance of having a will

So the message is clear, everyone would benefit from having a will in place but house purchase significantly increases the necessity to make one. Without a will, your surviving loved ones may be disadvantaged and the relatively small cost of putting this in place is really not worth the risk.

You should contact a solicitor or a professionally qualified will writer and ask them to clarify your liabilities and deal with these in a suitable will.