Useful Information
We've provided some explanation on terms and phrases you may of heard when researching will writing, this is by no means an exhaustive list but should provide you with a starting point. If you any further queries or questions please do not hesitate to call us or use the contact form.
Single or Mirror Wills
A Will is an expression of individuals’ wishes and allows people to state how they wish their estate to be distributed after death. However, a Will in itself does not protect assets but makes allowance for the formation of Trusts which can then be used to protect the family’s assets.
To die without a Will is to die Intestate.
A Will is one of the most important documents that a person ever prepares. A correctly drafted Will can help avoid/mitigate Inheritance Tax and/or protect your property from Long-Term care costs.
Lasting Powers of Attorney
Allows you to choose someone you trust to handle your affairs should you ever become incapacitated through illness or accident. Who will manage your affairs should you become incapable due to a stroke, dementia, Alzheimer’s? Who will sign cheques, documents, withdraw money from your account to pay the bills? Unless you have a Power of Attorney in place you may end up with your partner or family going to the Court of Protection for an order to appoint a deputy and granting them permission to handle your affairs. All of these problems can be resolved through putting a Power of Attorney in place.
Protective Property Wills
As reported in The Independent, 31st Jan 2006, over 200 homes are taken by councils every day to recover long term care costs. Protect your home from long term care fees. Last year 70,000 homes were sold to pay for the costs of Long Term Care.
Should a person with assets in excess of around £20,000 go into care, that person is liable for their care costs. Having exhausted any cash available, the Council would then look to recover its costs by selling the home. Download Long Term Care Article
Severance of Tenancy
Most couples own their home as 'Joint Tenants'. This means that if one joint owner dies the survivor would own the total value outright irrespective of what might be written in a Will. This means that the whole value would be means tested.
The alternative is to hold the property as 'Tenancy in Common'. This means that each party owns a share of the property and can deal with it as they wish. If one partner needed residential care, only their share of the property could be taken into account, therefore, preserving the share of the other partner. The difference with this arrangement is that your children would be guaranteed to inherit at least some of the value of your home.
Discretionary Trusts
A Discretionary Trust enables assets to be given them to any particular individual. They have been a feature of UK Trust Law for very many years, and much of the aristocratic wealth in the UK is held in such Trusts.
This is not really for tax reasons but to enable Estates to be protected from spendthrift beneficiaries. The assets are held by Trustees who have discretion to give the assets or the income from the assets to any one of a class of people named in the Trust Document.
These people are called the beneficiaries and the class of people described in the Settlement Deed is normally drawn very wide - often expressed as the descendants of particular grandparents. The Trustees have complete discretion on how the assets and the income is to be dealt with amongst the named class of beneficiaries. It is, therefore, important to choose the Trustees with care.
Children/Grand Children's Trusts
Allows your nominated trustees to take care of your children's or grand children's needs until they have reached maturity! You can decide at which age they inherit, although when they become aged 18 they can legally access any funds available. Would you want your son/daughter having access to your estate at the age of 18? Most clients would prefer their children not to have direct access o these funds until they are 25.
The Trustees have access to the Trust Funds and apply them to assist the beneficiaries, for example; to pay for education costs, a car, a deposit for their first property etc, etc. In other words, to do what the parents would have done, had they still been alive.
Disabled Person's Trust
This is similar to a children's trust in that it allows Trustees to attend to the needs and handle matters on account of a disabled person. The important issue here is that as the funds are held in Trust any Statutory Disability Benefits due to the person concerned are not affected by any monies held within the trust.
Pre Paid Funeral Plans
Funeral costs continue to rise every year. Don't leave your spouse or family with a problem. Save future expenses by prepaying your own funeral. Investing in a plan ensures that there are less worries for your loved ones, both financially and morally and you get the funeral that you want.
The monies paid are held in a specific actively managed Trust Fund and the Plan GUARANTEES that the services of the funeral director will be provided as specified and there will never be more to pay for those services. The Funeral Plan fixes the price at today's cost.
Probate Services
Estate administration can be an extremely daunting task for someone who has recently lost a loved one. Dealing with the Courts, the Banks and the Inland Revenue is time consuming and emotionally draining. Legal Services Probate can take care of everything on your behalf. From in gathering the Estate to finalising tax matters.
