If you acquire property, create or update your Will
First time buyer, buying an investment property or if you have inherited a property, you need to put a Will in place.
Is your existing Will fit for purpose?
However you acquire property, this is always a major asset of your estate. Does your existing Will adequately deal with that property when you die? Or if you do not already have a Will, would the intestacy rules make sure that property goes where you want it to? Chances are probably not.
Do you own the property jointly?
This issue is increasingly important where the property you have acquired is owned jointly. As part of the conveyancing process you will have decided whether to own the property as Joint Tenants or Tenants in Common. This can then have an impact on where the property goes when you die. Does it automatically pass to the joint owner? Either way, is this what you want?
What happens to your mortgage when you die?
Where you have a mortgage, what happens to the mortgage when you die and does this mirror what happens to the property?
You may want your intended beneficiary to inherit your property, but at the same time to take on your mortgage. Does your Will achieve this?
How does life insurance fit?
You may have taken out a life insurance policy to pay off your mortgage if you die before the mortgage has been paid off in full.
Do the life insurance policy proceeds pass to the person(s) who will take on the mortgage? It can be very easy to end up in the situation where the person that receives the life insurance proceeds is not the same person that is liable to pay off the mortgage.
Conclusion
It will usually be a huge relief once you finally complete on the purchase of a property. Time to relax and enjoy the asset you now own. However, it is important to remember that as with any major change in circumstances, acquiring a property is a prime opportunity to review your Will and make sure your wishes are carried out when you die.
