Cash clinic: Make a will, however young you may be

Q: MY boyfriend and I have just moved in together. We are a same-sex couple and are going to be entering a civil partnership next month.

We do not intend to have a family. He has not made a will as he thinks we are young and do not have to worry about these matters, but I am a little concerned because I'm very dependent on him financially. Do I have any rights in the event of anything happening to him?

MK, Glasgow

A: As a general rule, you should both make wills and review them at least every three years. If you do not make a will then any property you leave (known as "your estate") would not necessarily go to the people to whom you would want it to go.

It is also important to recognise that wills are only one part of a succession planning exercise. Inheritance tax (IHT) is currently charged at a rate of 40 per cent on estates over the value of the nil rate band, which is currently 325,000. Up to 100 per cent of the unused proportion of the nil rate band of whichever civil partner dies first can be claimed on the surviving civil partner's death providing the estate is left to the surviving civil partner.

Please bear in mind that any gifts made in the seven years prior to death would be taken into account. This is very different from the IHT position if you were not in a civil partnership and were just living together as is your situation at the moment.

So from the time you enter your civil partnership, your IHT position changes significantly. There are other financial and legal implications of entering a civil partnership and it is important that you take professional advice before proceeding.

You do not say whether either of you are or were previously married (or in a civil partnership), but this would also be relevant. Under Scots Law, if an individual dies and does not leave a validly executed will, their estate is distributed according to the rules of intestate succession. Your surviving spouse (or civil partner) is entitled to claim what are known as "prior rights." "Legal rights" can be claimed by your spouse (or civil partner) and children.

It is essential that you seek specialist legal and financial advice on these matters.

• Glen Gilson is a partner and head of private client and financial services at HBJ Gateley Wareing.

• If you have a question you need answered, write to Jeff Salway, Personal Finance Editor, The Scotsman, 108 Holyrood Road, Edinburgh EH8 8AS or e-mail: [email protected]. The above is for general purposes only and is not tailored for individual use. It does not constitute legal, financial or investment advice on any particular matter and must not be treated as a substitute for specific advice. No action should be taken in reliance of the information given.

The Scotsman Publications Ltd and HBJ Gateley Wareing accept no liability on the basis of this article. x