Creating a will is something everybody ought to do at any age as nobody can ever be certain of what could happen. As you experience life and your circumstance changes then you may need to modify your will yet in any case you’ll know that if the most horrible thing
happens, you’ll have done whatever you can to please the people around you.
When you have limited assets to highly complex documents where the finances are confusing, Wills can be very simple documents. Engaging a solicitor to do this for you will ensure you have thoroughly considered all that is involved, and how your actions will impact the people you want to include in your Will. You will benefit by bringing professional solicitors skilled in this area to you.
When you die without having a Will then your estate will be divided according to the law and your wishes will not be mirrored. Sizeable estates are not uncommon to be eaten up by quest costs associated with locating distant members of your family who may live in remote areas of the world.
Some reasons for making a will
– To name your children under the age of 18 a guardian should you die.
– To ensure that your riches go as you would wish to your loved ones.
– To stipulate how old will any children be when they inherit your properties.
– To set up trusts for family members or beneficiaries.
– To stop any conflicts over your estate by specifically stating your wishes.
– To stop having your money to crown if you don’t have a family.
– To cover all potential situations.
– To reduce any liability for heritage tax.
– To share your wisdom at your funeral.
Estate Managers and Intestacies
The procedure for managing an estate can vary depending on a variety of factors but if the deceased left a Will, the first will be created.
If a person dies leaving a Will, it will be the appointed executors who are responsible for ensuring proper management of the estate of the deceased and collecting their inheritance from the beneficiaries.
However, this is known as Intestacy when someone dies without having done a Will. In intestacy there is a strict legal order as to who can apply to be the estate administrator and if an administrator is named he or she will be faced with a strict legal order as to who inherits the properties.
Executing a Will
It is an onerous job to be the executor of a will, and not one that you should enter into lightly.
When a person dies, the executor is responsible for everything related to the estate, such as collecting assets and debts and applying for a probate grant that will allow the executor to allocate the estate according to the will.
It should be remembered that all powers of attorney kept on behalf of the deceased by others would be terminated on death.
Everything the executor does
– Estate assessment – make a list of the property and debts of the deceased.
– Communication with creditors and debtors – note the properties and debts associated with the estate and communicate with all related organisations.
– Charging expenses – charging the estate for all taxes, loans and charges.
– Lost assets – locate any lost assets known to exist.
– Probate – apply for a probate grant.
– Tax – pay every estate inheritance fee.
– Legacies – distribute the legacies formed in the will.
– Estate accounts – plan and allocate to stakeholders.
Heritage Tax Plan
Generally inheritance tax (IHT) is paid on properties worth more than £325,00, the zero rate band. If the estate is worth more than this, then IHT will be responsible at 40 per cent for its value less the zero tax band.
Married couples are prohibited from moving between them for properties but cohabitants are not. When you are a widow then you will benefit from the nil rate band of your former spouses and have an allowance of up to £650,000 commonly known as the transfer able nit rate band.
People tend to underestimate the value of their estate particularly when there is a mixture of assets such as property or companies, savings and investments, pensions or death in service and life insurance benefits. Therefore, if you own valuable properties, it is a god practice to ensure they are handled well throughout your life.
To ensure that your estate goes to your love ones as much as possible, it is important that you have professional advice about what can be done to mitigate your tax liability.
Lasting Powers of Attorney
A Lasting Power of Attorney (LPA) is a document allowing someone else in your name to deal with your affaires. This can be a critical document should you be unable to deal with your own affaires physically or mentally.
Without a permanent attorney’s power no one would have the right to deal with your affairs should you become unable to deal with them yourself and in such a situation your only recourse will be to apply for a deputy’s order to the defence court.
A permanent attorney’s authority sets out who you want to deal with your affairs and grants them the power to do so if you can’t handle them anymore but you can limit their authority and you can assign backup attorneys and stipulate when to act. There are two forms of LPA, one relating to the control of health and safety and the other relating to the properties and day-to-day affairs.
Trusts
A Trust is a legal arrangement that allows you to transfer your properties to trustees who will be handling them for the benefit of someone else, known as the beneficiaries. Trusts can be used by a Will for various reasons, either during your lifetime or after your death, to guarantee that the assets go to those you wish to inherit.
Here are some examples
– Leaving money to children – it will be a simple trust where money is left in a Will to a child, but they can not have the money before they reach the age of 18 or older. At this time, the Trustees have a responsibility to look after the money for the benefit of the child and should allow any guardian access to the money for the benefit of the child while retaining control of the assets. However, trusts, including asset protection and tax planning, can be used for many more reasons.
– Second Marriages – even when they are in a second marriage, people want to have a Trust. You may want to make sure your partner will stay at home, for example, but eventually you want your children to inherit everything from a first marriage. A good solution would be to have trust in the interest of life. It ensures that the surviving partner will have the right to live in the rent-free marital home until they die or remarry. When they don’t want to stay there instead they can rent out the house and get the rental income.
– Life insurance policies – life insurance policies can be written in trust so that will allow the money payable on death to go directly to your designated beneficiaries without even being included in your assets and thus not eligible for inheritance tax.
Contentious Probate Actions
Contentious Probate is a dispute about the succession or validity of a Will. When a loved one passes away, and the value of their estate is above the threshold, the process known as Probate will process through their estate. A probate grant is a court order which gives legal authority to one or more persons to properly distribute the estate of the deceased to the beneficiaries.
If a beneficiary challenges a testament’s authenticity or accuracy or makes a claim on the estate because it failed to provide sufficient evidence for the claimant, disputed evidence emerges. It can lead to problems, but we can understand these concerns and will work on your behalf.
Court of Safety Demands
When anyone loses their mental ability, they might need to apply to the Court to take over their affairs.
