5 Key Considerations for Estate Planning: Ensuring Peace of Mind
Estate planning is a vital aspect of financial management that often gets overlooked or delayed. It involves making critical decisions about how your assets and possessions will be managed, distributed, and protected during your lifetime and after your passing. A comprehensive estate plan encompasses several important elements that must be carefully considered and put into place to ensure your wishes are fulfilled. In this article, we will explore the five key considerations for effective estate planning. By addressing these five key considerations for estate planning – Will writing, Lasting Powers of Attorney, trust planning, and secure document storage – individuals can achieve true peace of mind. Estate planning provides a sense of control over the future, allowing you to protect your assets, support your loved ones, and leave a lasting legacy. At Confidence Wills, we understand the importance of a well-crafted estate plan. Our team, led by Simon, is comprised of members of the Society of Will Writers and adheres to their Code of Practice, ensuring that your estate planning needs are handled professionally and ethically. Take the first step toward securing your future by contacting Confidence Wills today. Our dedicated team is ready to guide you through the estate planning process, ensuring that your wishes are respected and your loved ones are provided for, even after you are no longer here. With Confidence Wills, you can be confident in your estate plan and find the peace of mind you deserve.
Unleashing Your Power: The Importance of Writing a Will in England and Wales
In a world filled with uncertainty, there is one powerful tool that allows individuals to retain control over their assets, beneficiaries, and the administration of their estates: the Will. In England and Wales, the act of writing a Will carries immense significance, providing individuals with the means to shape their legacy and ensure their wishes are honored. Let us explore the power that emanates from drafting a Will and the risks associated with intestacy. In England and Wales, the power that comes with writing a Will cannot be overstated. In France for example estates pass by forced heirship. By taking charge of your assets, designating chosen beneficiaries, and retaining control over estate administration, you are able to shape your legacy and ensure your intentions are honoured. Embracing this power safeguards your loved ones and grants you the peace of mind that your wishes will be respected. Don’t wait until it’s too late—unleash the power of your Will today and secure a brighter future for yourself and those you care about.
Warning – Sad Story about Guardianship
Please note. This happened to a real family and these circumstances could have been avoided if they knew about legal guardianship. If you have Children and you have not made a Will then PLEASE PLEASE make it a priority NOW. I had the sickening and sad experience yesterday for the 2nd time in my 10 years of doing my role where a family did not make a Will and they had minors. THIS IS 2 TIMES MORE THAN IT SHOULD HAVE HAPPENED. The children have been taken into Care as there was no legal (in the eyes of the courts) person available with parental responsibility. I am afraid to say IT HAPPENS !!! If you die and you have not made a Will which will nominate who you want as legal guardians o (if you have it done by an expert) and there is no person surviving with LEGAL parental responsibility then the Courts / local authority can and most likely will place the children into care while THEY make the decision of who is the correct person to carry out the care / guardian duties. This is why legal guardianship is such an important issue. Many people wrongly think that god-parents will assume parental responsibility but they have no rights of legal guardianship. Now I do not write Wills as I am a probate expert but I am in the fortuitous position of knowing many fantastic and expert Will writers Nationally. Please make this a priority and (although you should have a Will for many reasons) I am sure you will all agree this can be the one which causes the most devastation and most people I speak to are UNAWARE. I will happily speak to anyone (FREE) about the pitfalls of not having a Will and will explain what you need to consider. Please do not put this off. Anyone who knows us knows we are always educating and ensuring people speak to the experts and sadly this is a post we did not want to post on the back of a real life scenario this week. It wont happen to me…….. I will let the family decide …….. I do not own anything of significant value so I do not need a Will …… My parents will look after the children …….. The god-parents will assume legal guardianship …….. And so on – I do not go a day without hearing an incorrect statement.
Living Trusts – All you need to know
How much does a living trust cost? A Living trust may cost anywhere from £1,500 to more than £5,000 depending on the structure and need.One should be very careful in using these instruments and explore alternatives before proceeding.Moreover, it is necessary to register such trusts by the new Trust Registration Service, an administrative cost which should be factored in. What is a Living Trust? The overriding function of any trust is to separate legal and beneficial ownership.In the case of a ‘living trust’, a settlor – acting whilst alive, assigns or transfers property into the legal ownership of a trustee(s) to who is charged with managing the property in the interests of beneficiaries. The arrangement is called a ‘living trust’ largely to differentiate it from will trusts which do not come into existence until the death of the settlor.Trustees have a fiduciary duty to the beneficiaries of a trust and must act in their interests. It’s worth noting that beneficiaries may act as their own trustees (often together with others). What does a living trust do? In the context of estate planning, living trusts have a number of potential benefits, however these should be considered in the context of risks and costs. Specifically, I would assert that their potential benefits ought to be weighed pragmatically against ‘will based trusts’. Non exhaustively. Setting a trust up in life, as opposed to doing so via a will, means that it exists as soon as assets are transferred. One doesn’t have to wait until probate is complete in order for the trust to come into existence (as one would in the case of a will-based trust). This may have the effect of reducing the burden of probate altogether and potentially saving costs.Notwithstanding potential reductions in probate burden, firms may charge £4,000 or more to set up a trust, more than offsetting future savings. Moreover, ongoing registration demands may result in fairly pernicious ongoing accountancy bills. Protection from local authority levied, long term care fees, is a benefit occasionally cited by those promoting living trusts. Such claims ought to be treated with caution. The law is ‘wise’ to this approach. If a trust’s reason for existence is primarily to deprive the authority of assets it can be unwound. There is a common misconception that there is a time limit on how far authorities may go back in time to do this. There is not. All that said, if the trust is genuinely set up for another reason its presence may at least act as a ‘line of defence’ potentially delaying or even preventing absorption by care fees. Tax planning. Passing assets into a trust may have the effect of removing them from one’s estate for inheritance tax purposes (after a certain period of time has passed). One should not attempt to do this with a home, however, as this may well be considered ‘reservation of benefit’ for tax purposes (resulting in the trust’s being unwound). This approach may also prove beneficial to future generations since assets need not enter their estate if they are named on a living trust. Advice must be sought as trusts themselves are taxed and it’s possible for inheritance tax to become payable in life under certain circumstances. Conclusion Living trusts have, in my view, more ‘cons’ than ‘pros’ and I spend too much time trying to help those who have put assets in such trusts and lost documents or seen trustees die to be a big fan. For my part, I think will based trusts far more reliable for protection of assets from care fees for instance. That said, living trusts have a place in tax planning and intergenerational estate planning. Serious analysis should be undertaken, however, and particular caution is needed around the family home. If you or someone you know has been approached by a firm offering to place your property into trust, in life, please do get in touch via www.www.hlww.co.uk. We’re always happy to discuss matters without obligation.
Should I use a Professional Executor?
Should I use a Professional Executor? ‘Executor’ describes they or those named by a will as having legal responsibility for all the administrative work involved in the will’s execution. By definition an executor can only be named, by the deceased, in a will. If none meets this criterion an ‘administrator’ may be appointed by the courts. This may be unattractive introducing as it may potential for delay and wrangling.Often a husband, wife or child may take the position (it’s possible to appoint up to four). Many making a will, however, feel such tasks potentially too onerous and/or anxiety provoking, for their loved ones at a time of grief (executor’s bear significant legal responsibility for their work). In such instances a professional executor may be appointed. Typically, solicitors, banks or accountants perform the role. If so charged, they will ‘lead’ on all elements of the process, relieving family members of the burden. Charges are usually calculated based on size or complexity of estate and agreed with the family in advance. Do I need a professional executor? Everyone’s situation is unique, as are those left behind. Decisions on professional executor appointment may be informed by considerations such as: the administrative capability and confidence of loved ones (and by extension robustness of such attributes in case of bereavement); complexity of the estate and the anticipated emotional landscape arising from the testator’s death(including potential for conflict). Reasons to use a professional executor include:1. Speed and knowledge. A professional will have legal knowledge and won’t need to research process. They should begin swiftly, progress in an ordered fashion and avoid error.2. Impartiality. Conflict around wills may be catastrophic, rending families at a time of maximum need for cohesion. A professional will deal with matters impartially, in the best interests of beneficiaries and estate.3. Responsibility. Executors are personally liable for errors made in the administration of an estate. Professionals will not only follow due process but stand behind their work and in case of error carry insurances. Can I do probate myself? You ‘can’, the better question is ‘should’ you? In truth this depends to some extent on the complexity of the estate. If very simple, a DIY approach may save money, if more complex (in particular if there is inheritance tax liability), such an attempt may produce costly mistakes. An executor must (non-exhaustively): Determine what property and other assets you owned, as well as your liabilities. Arrange for current valuations of your personal possessions, property, investments. Any pension or insurance entitlements due and also any debts and bills. Arrange for the payment of your funeral Establish Income Tax, Capital Gains Tax and Inheritance Tax liabilities and complete the necessary tax returns to submit to the Revenue. Complete and submit the necessary Probate Registry forms Arrange the clearance and sale of any property Collect assets and pay any debts Arrange for the distribution of legacies and gifts to your beneficiaries Compile detailed accounts to give to the main beneficiaries In the case of minor children being beneficiaries, then your Executor may act as Trustee for ongoing trusts, to hold their monies until they reach 18. Even though your estate planner may not provide probate services, they will be engaged with providers and offer a useful alternative insight. Contact Confidence Wills now via www.www.hlww.co.uk if you’d like to discuss this challenging decision further.
What is a Trust Will?
What is a Trust Will? A Trust Will is a legal statement that you include in your will to ensure that property/assets are left to your loved ones, allowing them to benefit from them whilst not owning them. A Trustee, or trustees who is/are capable of managing the Trust on behalf of the beneficiaries needs to be appointed. There are several advantages to using a Trust Will: you retain control of your assets without giving them away and there may be tax benefits also. If a beneficiary has physical or mental disabilities or other special needs then you may be able to use A Vulnerable Person’s Trust in your will. This instrument, which is treated favourably from a tax perspective, allows you to provide for a vulnerable person’s care without gifting to them directly. Money is provided to trustees who are charged with applying it to the care of the vulnerable person, while the trust persists. Since this gift doesn’t pass directly into their possession any benefits, they receive are preserved. The most common reasons for using will-trusts are: Can you legally protect your estate from care fees in the future? The answer is, that if you own your property with a loved one or spouse, you may be able to safeguard at least of half of the value of your home for the next generation, by changing the way you and your Spouse/Partner own the home from ‘joint tenants‘ to ‘tenants in common’. As ‘tenants in common’, each of you are able to safeguard your share of the property via trusts in each’s will. If one of you needs to go into residential care, which can be very expensive and likely to get even more so with rising costs, the protected portion of the home is excluded from means testing. As with all legalities, it is advisable to seek professional advice from a qualified Will Writer at Confidence Wills. How to provide for a spouse or partner and protect your own children’s inheritance. It is really important to be aware of the fact that any marriage (almost always) automatically revokes any existing will that you have in place. If you don’t make a new will the rules of intestacy will kick in which would mean that your new spouse inherits all your personal possessions and approximately the first £270,000 of your estate plus 50% of the rest, which may mean your children inherit nothing. By creating a trust will you may protect your assets for the benefit of your children. This demonstrates the importance of not just making a Will but structuring it correctly according to your personal circumstances, especially when they change. As a company we uphold the highest standards and are happy to address any concerns you may have, without obligation. Please don’t hesitate to call us if you need advice or assistance our website can be found at www.www.hlww.co.uk .
How Marriage and Divorce affect Wills in England and Wales
None of us get married expecting divorce but 50% of marriages end in divorce. In this article we are encouraging you to think about marriage and divorce when it comes to Wills. Whether going through the excitement of planning a wedding and looking forward to getting married or the trauma -and consideration of your spouse /children- when going through a divorce, the last thing often considered is the effect either of these events have on an existing Will, the ramifications of which can be extensive. At this point it is important to point out that laws regarding the making of Wills are different in different countries, it is therefore important that a lawyer in the appropriate country examines the Will and advises you accordingly. MARRIAGE In England and Wales, any Wills made before marriage or civil partnerships are automatically revoked upon marriage or civil partnership, UNLESS, when making the Will, a ‘Contemplation of Marriage or Civil Partnership’ clause – naming the individual- is inserted. This revocation takes place irrespective of how long you have lived with a partner. In order to ensure your Will reflects your wishes at the time of your marriage or civil partnership it’s a good idea to discuss the situation with your professional Will Writer before the ceremony takes place, allowing time to make changes or write a new Will. If – when considering the situation – you think at the outset of your marriage you don’t need a Will because you haven’t acquired much in the way of assets, it’s important to take into account the speed at which circumstances can change, and the potential for conflict around such a bereavement. A sudden inheritance due to unforeseen occurrences such as sudden Illness or tragic accidents could suddenly and unexpectedly change your situation. Whilst death is always pending so course is life! Unplanned babies, despite best efforts, come along. Most people making a Will want to consider their children’s future security. There are so many unforeseen and unpredictable circumstances worthy of consideration. As professional Will Writers, we are able to advise you about the options to cover them all in your Will, including the use of Trusts where beneficial. DIVORCE Obviously divorce is not something we contemplate whilst we are happily married but having made the decision to end the marriage it’s important to consider the practicalities of the situation. Divorce won’t fully revoke your Will but it will have a serious effect on your estate. Your ex-spouse will not be able to act as your Executor or Trustee. They will no longer be able to benefit from the Will unless you have specifically expressed that they should. Separation is not the same as divorce because you remain legally married and the Will remains valid. If you don’t wish your spouse to inherit under the terms of the Will, you need to make a new one at this stage. You are not divorced until the decree-nisi is issued. If you remarry and each of you have children, in order to protect and provide for them it is important to make a new Will stating clearly your wishes and naming the said children. For the absolute avoidance of doubt, in the United Kingdom there are no such thing as common law marriages/ civil partnerships, therefore no legal rights exist in this situation – including after death! ************** If you die INTESTATE – that is without a legally valid Will in place – you will have no say over the distribution of your estate. The Rules of Intestacy – Default Inheritance Laws -will apply. Please note that the Rules of Intestacy do not recognise STEP CHILDREN and FOSTER CHILDREN if you wish them to inherit from your estate you MUST name them as Beneficiaries. Only biological and adopted children are recognised. Please remember at Confidence Wills we have the expertise to advise and guide you through difficult and complex situations. We are here to help you. Please feel able to contact us – without obligation.
How Marriage and Divorce affect Wills in the United Kingdom
In the article we are going to explore marriage and Wills as well as divorce and the impact on Will planning. This is part two of our articles on the subject. Whether going through the excitement of planning a wedding and looking forward to getting married or the trauma -and consideration of your spouse /children- when going through a divorce, the last thing often to be considered is the effect either of these events have on an existing Will, the ramifications of which can be extensive. It is important to point out to readers, that laws regarding the making of Wills are different in different countries. It is therefore important that a lawyer in the appropriate country examines the Will and advises you accordingly. MARRIAGE Marriage and Wills – They go hand in hand. In England and Wales, extant Wills are automatically revoked upon marriage or civil partnership UNLESS when making the Will a ‘Contemplation of Marriage or Civil Partnership’ clause- naming the individual- is inserted. This applies even if the union occurs after an extended period of living (and possibly having a family) together. If -when considering the situation- you think at the onset of your marriage you don’t need a new Will because you haven’t acquired much in the way of assets, you might reflect on the speed at which circumstances can develop. A sudden inheritance due to unforeseen occurrences such as Illness or tragic accident may arise. Other considerations are insurances and works pensions payable on death. Obligations and default legal outcomes shift as a consequence of marriage. As professional Will Writers we are able to advise you on options and it’s best to be prepared. Conclusion: If you’re in a couple, then consider our article about marriage and Wills. DIVORCE Obviously divorce is not something we contemplate whilst happily married but having made the decision to end the marriage it’s important to consider practicalities. 50% of marriages in divorce so this is something to be mindful of. Divorce won’t fully revoke your Will but it may profoundly alter its effect. Your ex-spouse will not be able to act as your Executor or Trustee. They will no longer be able to benefit from the Will unless you have specifically expressed that they should. They will in fact be treated as having died before you. Separation is not the same as divorce, you remain legally married and the Will remains valid. If you don’t wish your spouse to inherit under the terms of the Will, you need to make a new one at this stage. You are not divorced until a decree-nici is issued. If you remarry and each of you have children from previous relationships, in order to protect and provide for them, it is important to make a new Will stating clearly your wishes and naming said children. For the avoidance of doubt, there is no such thing as ‘common law’ marriages/civil partnership in English law, and no reciprocal legal rights accrue to those in such relationships . ************** If you die INTESTATE-that is without a legally valid Will in place- you will have no say over the distribution of your estate. The Rules of Intestacy – Inheritance Laws -will apply. Please note that the Rules of Intestacy do not recognise STEP CHILDREN and FOSTER CHILDREN if you wish them to inherit from your estate you MUST name them as Beneficiaries. Please remember at Confidence Wills we have the expertise to advise and guide you through difficult and complex situations. We are here to help you. Please feel able to contact us – without obligation.
Explaining the exact difference between Probate and Estate Administration
At Confidence Wills, we understand that the terms ‘Probate and Estate Administration can be confusing. That’s why we are here to answer your questions and provide clarity on what these processes entail. In this short article, we will explain the difference between Probate and Estate Administration. Probate is a term associated with the ‘Grant of Probate’. This is a legal document that is issued by the Probate Registry after an application has been made following the death of a testator (someone who has made a Will). The Grant of Probate confirms the validity of a Will and it gives the Executor or Administrator authority to administer a deceased person’s estate. It is also referred to as Confirmation in Scotland. The purpose of probate is to prove who has the legal authority to deal with a deceased person’s estate. ‘Dealing with an estate’ is known as the ‘Estate Administration’. These responsibilities include paying off any debts, settling funeral costs (and other testamentary expenses) and distributing assets to beneficiaries in accordance with the wishes stated in the Will. Confidence Wills can facilitate the probate process, helping to identify the deceased’s assets, placing a value on them and distributing them according to the Will. Our team can sell assets if necessary and have a responsiblity to act with integrity and professionalism. Confidence Wills has a team of experienced probate professionals who support with this process that are available to help you every step of the way. As detailed above, Estate Administration is slightly different from Probate. This process involves dealing with all aspects of the deceased’s estate and includes tasks such as gathering assets, preparing accounts for inheritance tax, paying off debts, dealing with any legal disputes over the Will and finally distributing the estate to the beneficiaries. Confidence Wills are also available to help you with this process, ensuring that everything runs smoothly for you. If you die without a Will, or as it’s more likely, if you’re reading this and a loved one has passed away without a Will, Confidence Wills can still help you. Passing away without a Will is known as ‘intestacy’ and Confidence Wills can help you with the estate administration process, helping to identify the deceased’s assets. You wouldn’t apply for a Grant of Probate in the same way as you would if you died with a Will Instead, Confidence Wills can support you to apply for letters of administration. This document is similar to a Grant of Probate and it will give you the authority to administer the estate of the deceased. Confidence Wills will be able to provide you with more details on this process during a no obligation consultation. If you’re thinking about dealing with the estate of a loved one, Confidence Wills can provide you with all the information and guidance you need. Our team of dedicated professionals are here to answer any questions, help you avoid pitfalls and perhaps hold your hand through the process. Losing someone dear to you can be a difficult experience, but Confidence Wills will make sure that the probate and estate administration process is as straightforward as possible. For more information or to book in a free consultation, give us a call at Confidence Wills on 0121 2024714 or complete our contact form on our website. We look forward to hearing from you soon.