NEW YEAR, FRESH START!

PUTTING IN PLACE WILLS AND LASTING POWERS OF ATTORNEY TO PROTECT YOU AND YOUR FAMILY

Starting a new decade is a great time to review and reflect on financial planning and protection for you and your family. We seldom know what life holds in store for us and our loved ones, so forward planning is essential.

Here is a good place to start:

Do you have a Will and if you do, does it need updating?

2019 research by insurers Royal London revealed:

57% of adults do not have a Will
60% of parents do not have a Will or have one which is out of date
5.4 million adults said they do not know where to begin when it comes to writing a Will
Around 30% of people said they had recently experienced a significant life event such as having a baby or getting married but of those only about half said they had updated their Wills as a result of this event

The research highlighted a number of popular misconceptions. Here are some examples:

I cohabit with my partner so he/she will inherit my assets if I die without a Will

If you cohabit with a partner and are not married or in a civil partnership your partner would not be entitled to your assets if you died without a valid Will.

My children will be cared for by my immediate family if I die without a Will

Without a valid Will the legal responsibility for appointing a guardian for dependent children under 18 would generally be decided by the courts.

A Will giving assets to the spouse from whom you have separated is still technically valid unless and until your divorce decree absolute.

As you can see not having a valid and up to date Will can lead to all sorts of complications.

It is important to seek specialist advice from a solicitor to ensure that your Will properly reflects your wishes when you die. The Will should be replaced if your circumstances change such as buying a property, you get married or divorced or have a child. You should review your Will every three years to ensure it is up to date.

Taking specialist advice from a lawyer about succession planning and making a Will ensures that:

You have peace of mind about who will inherit your assets.
You can manage the expectations of your family about what they will inherit when you die.
You can act to minimise inheritance tax payable on your assets and plan regular gifting to your loved ones and charities.
If you have young children that you specify who you wish to be their guardian ie who would look after them should they be under 18 and have no surviving parent.
If you have children who are to receive a share of your assets that they do so at a suitable age. Without a valid Will, children are entitled to their inheritance at age 18.
You receive advice about the suitability of a simple trust to achieve your wishes particularly if there are children under 18 or there are vulnerable or disabled children or where you have remarried and want to preserve assets for children of either or both marriages.
Using the services of a specialist lawyer can minimise the prospect of valid challenges to the validity of your Will or arguments about mental capacity to make a Will or avoid challenges seeking a share of your estate under the Inheritance (Provisions for Family and Dependants) Act 1975.

As you can see, there is a lot to consider but rest assured Heringtons lawyers can help you every step of the way.

Do you have Lasting Powers of Attorney and why these are essential

There are two types of Lasting Powers of Attorney (LPA). You can decide whether to make one or both. These allow someone that you trust to make important decisions based on your best interests. This can cover day to day matters or more important decisions. You can decide just how much power your chosen trusted person (attorney) will have over your affairs.

Property and Financial Affairs LPA

This involves decisions about money and property and can occur when you no longer have full capacity to make decisions or when you still have full mental capacity. This might involve collecting a pension, paying bills, selling or leasing property, investing money, arranging for repairs to your property, paying for your medical treatment.

Health and Welfare LPA

This involves making decisions on your personal healthcare and welfare and can only come into effect when you lose capacity. The LPA might involve decisions about where you live, nutrition, how you spend your time, who you see and medical treatment you receive. The attorney is bound by principles set out in the Mental Capacity Act 2005 including whether the maker of the LPA (donor) has the capacity to make the decision themselves.

We can guide you through the process of applying for an LPA, ensuring that the LPA is customised with clauses to suit your particular needs and requirements and that the LPA is registered with the Office of the Public Guardian (OPG).

LPAs are becoming increasingly popular and around 800,000 were registered with the OPG in 2019.

This reflects the needs of our ageing population of whom half a million already suffer from dementia. It is predicted that by 2026 one in five people in the UK will be aged over 65.

It is important that LPAs are registered with the OPG and in place since it will be too late to have an LPA if you lose capacity. Where a person loses capacity without a LPA having been registered, it may be necessary to apply to the Court of Protection for a Deputy to be appointed by the Court to deal with the affairs of the individual. This is invariably a lengthy and costly process, some would say best avoided.

Does all of this sound a bit scary?

Well, it shouldnt do, but don’t leave things too late.

With the advice and assistance of a Heringtons lawyer we can guide you through this process. We pride ourselves on our links within the local community and our professionalism and friendly, approachable manner.

Phone us today on 01323 411020, contact us through this website or email skinsey@heringtons.com to find out how we can help.