Have you planned for later life?

Wills

Without a Will, your assets will be distributed according to the ‘intestacy rules’ i.e. the law dictates where your estate goes to on your death. The result might be that your estate doesn’t go to the people you want it to.

By making a Will, it enables you to decide what happens to your assets on your death and can also include:

• any funeral wishes you may have;
• any specific items you wish to pass on, such as jewellery;
• any gifts of money you wish to make to family, friends or charities;
• If you have children under the age of eighteen, who you would like to look after them in the event of your death.

It is really important to discuss your requirements with a professional so that they can consider your family and financial circumstances and advise on the best options for your situation.

It is also vital that you keep any existing Will under review especially if your circumstances have changed, for example, due to getting married or divorced, having children or your financial circumstances have changed, for example, if you have received an inheritance.

 Inheritance Tax planning

If your estate on death is over a certain amount then there may be Inheritance Tax to pay when you die.

Inheritance Tax is charged at 40% but it is possible to mitigate your Inheritance Tax liability on death through careful lifetime planning such as making lifetime gifts and by having a tax-efficient Will in place.

Over the last few years, there have been significant changes to the Inheritance Tax regime including the introduction of the Residence Nil Rand Band and so it is important to talk to a professional about making your Will and reviewing any existing Will to ensure that, as much as possible, the various allowances and exemptions available on death can be claimed.

 Lasting Powers of Attorney (LPAs)

More than two million people in the UK are unable to make their own decisions. This could be due to dementia, a stroke or a mental illness.

Most people assume that if this happens, their family can be relied on to take over the management of their finances and making decisions about their health and any care they may need. However, unless you make a Lasting Power of Attorney in place, they do not have the necessary legal authority to act.

An LPA allows you to choose one or more individuals that you trust to handle your affairs in the future if either you can’t or you do not want to manage them yourself. Without an LPA in place, many families find that big decisions about a family member are left to the Court, medical practitioners or a social worker.

There are two types of LPA:

• Property and financial LPA
• Health and Welfare LPA

If you lose mental capacity and have not made an LPA, an application to the Court of Protection may need to be made.

It is important that everyone, no matter how old they are plans for the future.

For 10% off making a Will or Lasting Power of Attorney, please quote “Handpicked” when making an appointment.

For more information, please contact Sarah Collier on Wetherby 01937 583210.