It is an unfortunate truth that many people die with no will, and most others have wills not updated for the circumstances prevalent when they die. High property values and ever more detailed tax legislation, means it has never been more important to routinely review wills in line with changing legislation and personal circumstances.
Better treatment of the classic chronic diseases has meant longer life expectancy. Unfortunately it has also brought about circumstances where either assets are dissipated in long term care costs, or people eventually succumb to crises such as strokes or heart attacks, giving them no opportunity to update their will, or leaving them mentally or physically incapacitated.
We consider all these possibilities in providing individually tailored wills which recognise our clients situations and wishes. This will include the setting up of necessary Trusts and other arrangements to minimise unneeded tax liabilities. With latest legislation, it is as important to also consider Lasting Powers of Attorney and Living Wills.
We need to start with two facts. There is no such thing as a common law partner, and a marriage or divorce immediately nullifies any will. The laws of intestacy are very strict. They do not regognise any intent, and their application can lead to outcomes very different from what the deceased would have wanted, and decided by people they didn't chose. If this is your situation you should immediately consult on making a will.
Having got that over with, we can go on to the other issues below, including routine reviews of wills, optimisation of outcomes, and associated issues.
Your personal priorities should decide how your assets are used. Apart from the obvious wish for the financial security of partners and children, it may include grandchildren's welfare and education, and other things as diverse as care of your animals and pets, specific requests concerning items of a sentimental value, family heirlooms, showing your appreciation of people who have been good to you, donations to charities, funeral arrangements - and many other personal wishes.
We unfortunately see many bitter family squabbles about a person's estate, often of a nature and with outcomes very different from what the deceased would have desired. Clear statements in wills can avoid this. Poor wording of wishes to give to charity are a frequent cause of unplanned outcomes.
Trusts set up during your lifetime can be used as part of tax planning to take assets out of your estate and set them aside for specific purposes, such as for the benefit of grandchildren. Will trusts can be used to provide discretion concerning beneficiaries' possible long-term care costs, or to prevent unwanted outcomes in instances of the divorce or bankruptcy of beneficiaries.
Although there have been recent changes in legislation, this is still an important consideration in estate planning. We would also look at the implications on your beneficiaries own inheritance tax situation.
The subject of recent new and complex legislation, unfortunately this is an area which needs to be considered in advance because it becomes relevant in the case of permanent or temporary incapacity, arising from, for example, strokes or falls, or in the final stages of illness.
The new legislation has replaced the old Enduring Powers of Attorney. (Which are still valid if made before 1st Oct 2007). There are now two types. One mainly deals with financial affairs and property in instances of incapacity. Also, for example, if you intend to be absent from the country, such as on an extended cruise, we can help you with planning as to cover management of your affairs in your absence, or to make sure proper arrangements are in place should an incapacitating medical incident take place whilst you are abroad.
The other, and new, power deals with your personal matters, such as in health, medical treatment and family issues. These wishes now have to be registered in advance, otherwise, for example, medical decisions may be taken concerning you, which you would strongly disagree with.
Although the new Lasting Powers of Attorney legislation covers many aspects previously requiring a Living Will, these are still relevant in some circumstances, and we would be happy to advise you.
Telephone: 01590 623252, from 9.00am to 5.00pm, Monday to Friday. For a local map, or details of how to get to us by train or bus - click here. Trusts.
Inheritance Tax.
Lasting Powers of Attorney.
Living Wills.
To contact us for advice concerning any of these issues.
Fax: 01590 623786
e-mail - click on sue.martin@martinssolicitors.co.uk