- 41% of young adults aged 18-24 have a Will;
- 47% of 25-54 year-olds have a Will; and
- 69% of those over the age of 55 have a Will in place.
Dying without a Will can make an already heart-breaking time for your family even more difficult. Having a relatively straightforward conversation with a will writer or estate planner can give you and your family peace of mind. If you don’t put provisions in place during your lifetime and die without making a Will, the laws of intestacy will govern how your estate will be distributed, which means your estate could go to someone you would not have chosen to distribute it to. Aside from this, inheritance tax (IHT) may be payable, too.
Protect your Assets:
There is also a common misconception that those who are unmarried and have been in a relationship for a long time will benefit from their partner’s estate on death. Unfortunately, this is not the case, and we have seen this happen all too often where a partner has died without a will, and their partner has been left with nothing.
Protect your Assets:
Contrast this with someone who has put their affairs in order. They can gift their assets to whomever they wish, including properties or specific items, such as jewellery, art collections, or even items of sentimental value that they want to keep in the family. This at least ensures that your loved ones can inherit the things you leave for them on your death.
So what can you do?
Make a Will
A Will is an important legal document which enables the person making the Will (otherwise known as the testator), to specify how they would like their belongings (assets, chattels and property) to be distributed on their death.
A Will enables you to do the following:-
- Appoint executors to handle your estate and distribute your assets
- Appoint guardians to look after any minor children you may have (children under the age of 18)
- Make money gifts to family members, friends or even charities
- Specify for certain items to be gifted to a beneficiary i.e. a family heirloom or even a piece of jewellery
- Specify funeral arrangements
- Gift properties
- Exclude people from benefiting under your Will i.e. estranged children
- Make provisions for any pets you may have
- Include various trusts
- Specify how your estate should be distributed and who to
- IHT planning
Once you have made your Will, it’s important that you review it at least every 3-5 years or when there is a change in your personal circumstances i.e. marriage or the birth of any children. As a side note, did you know marriage can revoke a Will? It’s worth having your planning reviewed if not!
Have a Lasting Powers of Attorney
A Lasting Power of Attorney (LPA) is a legal document which allows a person (called the donor) to appoint someone they know and trust to make decisions on their behalf should they become unable to do so in the future. This person is called an attorney, and they must always act in the donor’s best interest. An LPA can only be created if you have mental capacity.
There are two types of LPA: –
- Health and Welfare
- Property and Financial Affairs
What decisions can be made with either LPA?
Health and Welfare
- Day-to-day decisions such as exercise and dietary requirements
- Medical care
- Life-sustaining treatment
- Relocation into a care home or sheltered accommodation
A Health and Welfare LPA can only be used once it has been registered with the Office of Public Guardian (OPG) and when the donor loses mental capacity.
Protect your Assets:
For more information on this type of LPA, please click here.
Property and Financial Affairs
- Managing bank accounts
- Paying bills
- Collecting income and benefits
- Making decisions with regard to the home
- Selling the home
- Managing investments
For more information on this type of LPA, please click here.
It is important to note that Property and Financial Affairs LPA can be used as soon as it has been registered with the OPG. The LPA may state that it can only be used when the donor has lost mental capacity, so the attorneys will need to check. They may also be required to provide evidence of the donor’s loss of capacity before using the LPA.
