01 January 2020
Make a Will
We all know how important this is but frequently put it off. Making a Will is very important because your Estate may not be inherited by those you wish to benefit if you don’t have one. The Law is very old-fashioned in this area and tends to assume that everyone is married with two children. Unmarried couples, single people and those with children from previous relationships need to be particularly cautious.
It can be daunting to make a Will if you believe that your particular situation is complex or unusual. However, an experienced Wills lawyer can advise you how best to set out your instructions and give advice tailored to your specific circumstances.
Review your Will
Bear in mind that your Will may now be out of date. You might want to change your Executors to children who are no longer minors. You might want to change the gifts your grandchildren will receive to help them to get on the property market or pay university or tuition fees.
Check Your Will Is Still Valid
If you got married since making your Will it will automatically be invalid due to old-fashioned Law. You may need to re-sign or update it.
Check your Inheritance Tax Position
Inheritance Tax is paid by your Executors when you pass away. It is calculated on the value of your assets (including your home, belongings, savings and investments) after liabilities have been deducted. There are many available exemptions to reduce the amount of tax to be paid.
We advise all clients to keep their Inheritance Tax situation under review. The Law in this area is technical and constantly changing. The Will you put in place previously may no longer be the best option. Will your Executors be able to claim a Residence Nil Rate Band? Does your Will utilise the Legacy 10 scheme? If not, could your will be updated to include them?
If you have received a large inheritance yourself, it may have changed your own position. Should you sign a Deed of Variation to move the inheritance on to your children instead?
Check your pension
It is a good idea to check whether your pension will pay out after your death and if so, whether it will pay to your Estate or to a nominated beneficiary. Pensions can sometimes be held on Trust so that they don’t affect your Inheritance Tax position.
Make sure you haven’t named your ex-partner as the Beneficiary and forgotten to update the paperwork!
Make a set of Lasting Powers of Attorney
LPAs enable you to appoint an Attorney (a trusted friend, family member or professional) to make decisions and act on our behalf when you are unable to do so yourself. They are often made by elderly people but can be used by anyone. They are sometimes made if people intend to go overseas and want someone back home to be able to “take charge” if there is an problem, or generally in case of an accident or unexpected illness.
Clients often remark that they are glad to have finally gotten around to sorting out these matters. It may well take less time and effort than you think!
If you would like assistance with life planning you can contact our friendly and approachable Wills, Trust and Probate lawyers based at our Bournemouth and Christchurch offices:
Please note, this is not legal advice. It is intended to provide information of general interest about current legal issues.
