Having an up-to-date will together with an estate plan is something every adult must consider and have.

 

Potential Consequences:

• Property passed to unintended beneficiaries.

• Loss of control over financial and health-related decisions at critical times.

• Expensive tax bills due to inheritance tax liabilities.

• Delays in beneficiaries receiving their inheritance.

 

At a time when families just want to be there for one another, the last thing they need is the stress that comes with fulfilling all the legal formalities as well as the risks of being taken advantage of going into an unknown process.

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A proper plan in place can act like a type of insurance policy, there for such an eventuality. A plan that loved ones shall be grateful for, come a time.

 

Pitfalls

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Family disputes: Without a valid will, the rules of intestacy dictate who the beneficiaries of assets are. This could have the unintended effect of assets being handed over to person(s) they were not supposed to go to. Whereas, with a will, the beneficiaries are chosen in advance.

 

Loss of financial and health making decisions: Where there is a decline in an adult individual’s ability to think, remember, make decisions, or perform everyday tasks due to either an injury to the brain, dementia, stroke, accident, etc... that results in a person’s loss of mental capacity, the Court of Protection can appoint a professional deputy, unknown to the family, to make decisions on financial and health matters on behalf of a person affected.

 

This can shut families from legally accessing an affected person’s bank accounts, making medical decisions including life sustaining treatment, day to day living decisions, and so on.  The process for applying for Deputyship for a family member can be a cumbersome process with drawbacks, especially at a time where it is needed the most. With a Lasting Powers of Attorney (LPA) in place, loved ones can be available to act on behalf of a person lacking capacity in good time.

 

A potential tax bill: Did you know that if the value of total assets owned are above certain threshold values and minus any exemptions, are potentially liable to inheritance tax, currently at a rate of 40%. For the tax year, 2023-24 alone, HMRC is expected to take in £8.7 billion in inheritance tax receipts. A figure which is rising each year, as the government seeks to gather in more from taxes. With proper planning this can at best be reduced or totally mitigated.

 

Other things to consider are:

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• Appoint Guardians for Minors: Secure your children's future by appointing trusted guardians, along with detailed instructions and wishes for their upbringing.

• Arrange Inheritances for Children: Set up trusts or other legal arrangements to manage and protect assets until children reach legal age for inheritance.

• Protect Your Home from Care Costs: With strategic planning, safeguard your family home from being considered in care home fee assessments by local authorities.

• Plan for Intergenerational Home Succession: Ensure a smooth transition of the family home to future generations, maintaining the home within the family line.

 

Having done all the hard work, now add the finishing touch of having an estate plan in place, set for life and beyond.  

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The entire process can be carried out in a simple and friendly, stress-free manner. 

 

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