Any property that is owned by you with another person as joint tenants does not fall into your estate and cannot therefore be dealt with by the terms of your will. You therefore need to find out whether any property you jointly own (this can be your home or a bank account or any other property) is held under a joint tenancy (which means you both own the whole property) or under a tenancy in common (which means you each own a specified share in the property, say half and half or one third and two thirds).
If you are uncertain how your property is held, you should consult a solicitor. In principle, any property can be held this way.
If the property is held under a joint tenancy, then upon your death your interest in the property will go automatically to your surviving co-owner. If your property is owned under a tenancy in common on the other hand, then you can give your share in the property to anyone you wish through your Will.
If you want to do so, you can easily change a joint tenancy into a tenancy in common by presenting your co-owner with written notice of your intention. It is important, however, that this written notice is given before your death, and not in your Will. You will need to see a solicitor to do this as there can be strict rules about the nature and service of such a document.
A surviving joint tenant may be liable to pay tax on inheriting your share of the jointly owned property, unless you specify otherwise. This does not apply to spouses or civil partners who are automatically exempt from inheritance tax in these circumstances.
If you do not wish the other joint tenant to pay this tax personally, you must include the following statement in your Will:
'I wish the burden of any tax due on my interest in property held under a joint tenancy to fall on my residuary estate.'
Property which is situated abroad (which for this purpose includes any other jurisdiction in the UK other than where you are domiciled) may not pass under your Will. You should consult a solicitor if you own or have an interest in property abroad.
Generally, life insurance policies that are expressed to be for the benefit of your spouse and/or children do not pass under your Will and therefore do not form part of your estate.
The premiums paid on such a policy are not taxable if paid out of normal disposable income. The policy can be written in such a way that the proceeds are not taxable when you die. A life insurance policy is therefore a good way to provide your family with the funds to meet any tax payable upon your death. You should consult your life insurance company for more details.
Your pension rights may pass outside your Will in the same way. Your employer should be able to give you more details. In many cases, you will be able to name the person who is to benefit from your pension rights, but only in a separate document, not in your Will.
Law stated as at 1 April, 2005