What is a survivorship clause?

When you make a will, it's common to include a survivorship clause. But what does that actually mean?

If you've ever had a will written, or you've read somebody's else's will, you may have noticed that it included a 'survivorship clause'. That's a statement saying that anybody who dies within a specified time of the testator's death (up to six months) will be deemed to have predeceased them.

Why do wills include a survivorship clause?
The main reason for including a survivorship clause is to avoid two sets of probate for mirror wills which name husbands, wives or civil partners as sole main beneficiaries, in the event that both partners die at the same time or within a short time frame of each other.

What happens if a husband and wife (or civil partners) die simultaneously?
If you and your husband, wife or civil partner die at the same time (for example, in a car crash), and it's not possible to determine which of you died first, the older of the two of you will be deemed to have died first.

It's also possible that one of you will survive for only a short time after the other, perhaps suffering fatal injuries in the crash and spending some time in hospital before dying.

Let's say that you and your husband, wife or civil partner have made 'mirror' wills, naming each other as sole main beneficiaries. Without a survivorship clause being included, both wills will need to go through probate. That means double the work for your executors and trustees and potentially additional costs to be charged against one of the estates, reducing the legacy available on second death.

What's the effect of a survivorship clause?
A survivorship clause says that anybody who dies within a specified period of the testator's death (usually 1-3 months), will be presumed to have died before the testator. In the case of mirror wills where one partner is sole beneficiary, that saves the need for probate on the first death.

When is a survivorship clause not appropriate in will writing?
It may not be appropriate to include a survivorship clause in certain circumstances. For example, there can be an inheritance tax (IHT) benefit from having your estate pass to your husband, wife or civil partner before being distributed to other beneficiaries because you can leave everything to your husband, wife or civil partner totally free of inheritance tax.

Because of the transferable nil rate band, in dealing with the estate of the husband, wife or civil partner whose death is deemed to be the second death, the executors/trustees can also take advantage of the full IHT exemption allowance of the husband, wife or civil partner who died first. This includes the residential nil rate band if a property you live in (or once lived in) is being passed to your children.

For professional, affordable will writing services in or near Ipswich, Suffolk, call 01473 659024 or email hello@cswills.co.uk

For more information on how to make a will visit www.cswills.co.uk


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