14:36 PM, 30th July 2019, About 3 years ago
Nearly 60% of all adults say they have no Will * That’s a surprising statistic when you consider the implications on those that we love.
Not having a Will means that your next of kin will be faced with additional responsibilities after your death, including the potentially onerous task of managing the responsibility of obtaining the legal right to your estate. Why would you choose to leave problems for your beneficiaries and families that can be mitigated by taking the correct steps now?
Intestacy rules are not as straightforward as you might think and inheritance disputes are not uncommon. Without a Will, there is absolutely no guarantee that your intentions and wishes will be implemented as you wish at a time of immense grief for those that you truly care about.
You can remove a substantial amount of uncertainty from the lives of your loved ones by making a Will a priority. The process is straightforward and affordable. You can also implement some basic long term financial planning that will eliminate, or significantly reduce the amount of inheritance tax that your loved ones pay after your death.
Wills and Inheritance Tax Planning FAQs
Who should make a Will?
All adults should make a Will. Certainly married couples and, even more importantly, co-habiting partners.
Also, anyone with children. Appointing Guardians for your children is crucial. If you do not appoint your own Guardians, the Court of Protection will do so, it may not be the obvious choice you would have wanted.
At what age should you make a Will?
Wills are not about age, they are about responsibility and younger people often have the most responsibilities.
What if my circumstances change and I want to change my Will?
A Will is a fluid document because it has no effect until you die. You can change it, or update it, whenever it is required.
What happens if I don’t make a Will?
If you have not made a Will, your estate will pass according to the Law of Intestacy. That means that the State will write a Will for you.
If guardians are not appointed, the Court can also decide who has care of your children. This process is called Letters of Administration and will take longer and be more complicated compared to having a valid Will or Trust in place.
What inheritance tax will my loved ones pay if I don’t initiate long-term financial planning?
They will pay a tax rate of 40% above a threshold of £325,000 for individuals and £650,000 for married couples. There is no inheritance tax payable on first death for Civil Partnerships or married couples. **
Estate Planning & Trusts
Sound solutions should be sought with a Basic Will being the prerequisite and further options considered for more complex estates.
Having life cover written under a Trust, will facilitate swift payment to Trustees on behalf of the Beneficiaries. This does not rely on Probate, simply the production of the Death Certificate and usually claims are paid out within 21 days.
Some of the options available to secure your Estates and assets for the future are:-
Discretionary Trusts – Your family will keep control of the assets. Provide protection from hostile predators. Protection for your children and future generations.
Property Protection Trusts – Ensuring your home will pass to those individuals you select to inherit.
Lasting Powers of Attorney – A legal document in which you appoint someone to make decisions on your behalf in your lifetime if you should you lose capacity – Attorneys are selected and two separate documents Financial LPA and the Health and Welfare LPA.
For a financial and personal review of your Estate please contact me using the form below