One of the reasons that we keep talking about making a Will is that if you don’t set out your wishes in a Will, the law decides who gets your worldly possessions, and it may not be as you want. It can also take much longer to sort out your affairs and may mean paying unnecessary Inheritance Tax (IHT) - all extra stress for your dependants.

If you have been living with your partner for many years (including same sex relationships), even though you may have children, unless you are married or in a civil partnership, your partner will not automatically inherit anything. There are set rules that come into effect if there is no Will, and partners are not included by right.

If your partner does die without making a Will and you feel that the law has not made reasonable provision for you, you may be able to make a claim under the Inheritance (Provision for Family and Dependents) Act 1975. You will have to make the claim within six months of the Grant of Letters of Administration. To be eligible you must have had a particular type of relationship with the deceased, ie child, spouse, civil partner, dependent or cohabitee. The problem is, if you were living with the deceased as a partner but weren’t married or in a civil partnership, you will have to prove that you were ‘maintained either wholly or partly by the deceased’ which can be difficult to prove if you’ve both contributed to your life together.

Inheritance Tax (IHT) is another important issue. Although the threshold of £285,000 may seem high, when you include property at today prices and all your assets, many more people are liable for IHT.

If you leave everything to your spouse or civil partner then your estate will be exempt from IHT. However the complications arise when that partner dies their estate will be increased and the result will be that a greater level of IHT will be paid at that time - there is no escaping the taxman!

One point to consider is that you can leave up to £285,000 (which is the IHT threshold in tax year 2006/07) tax free to anyone in your Will, not just your spouse or civil partner. For example you could give some of your estate to a relative or even set up a family trust. This way, IHT is only payable at 40% of the amount you leave above the threshold figure.

On the downside, setting up a trust can be complicated and is really only worthwhile if you have a large estate. You will need to get specialist advice from an IFA/Accountant and also tell your Tax office if you set up a trust.

Since March 2006 there will also be an immediate charge to IHT for most types of trust if the transfer takes you above the IHT Threshold. There will also be IHT charges if you remove assets from the Trust!

If you leave money or assets to a registered UK Charity, then there is no Inheritance Tax payable, as these transfers are exempt.

Don’t gamble with your loved one’s future. Take professional advice and have your Will drawn up by your solicitor, and then get on with enjoying the rest of your life.

Will writing and inheritance tax advice is available through Motley and Hope solicitors. Telephone Teresa McCutcheon on 01767 600600 for further information or e-mail teresamccutcheon@motleyandhope.co.uk.