Parents With
Children From A
Previous
Relationship
If you have children from a previous relationship, you may wish to ensure their inheritance is secure. To do this, you can create a Trust to ring fence your estate, or a portion of your estate, for their benefit.
On the other hand, if you have an estranged child who you would rather did not benefit from your estate, you can create a Family Asset Protection Trust to protect your assets from becoming part of your estate.
Read more about Trusts and Trust Wills to see how you can plan for your loved ones today.
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A free, no-obligation, consultation
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Complete plan and timeline
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Optional remote will service
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Protection from future disputes
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Leave your loved ones without any burdens
Retirement
Are you approaching retirement?
Couples approaching retirement have a range of options to consider with regards to income, asset protection, estate planning for future generations. Speak to one of our experienced Will & Estate Planning Consultant about the various ways to plan for retirement. This can be very useful for couples as we can highlight some of the common areas for consideration, and can tailor our advice to your specific circumstances leaving you and your partner to enjoy retirement without the worry and stress that many couples face today.
As well as planning your estate and a comprehensive Will writing service, we can help you plan for your future. Below is a brief guide to some of the ways we assist people when retiring.
Will Writing & Review Service for Retiring Couples
If you don’t already have a Will in place, or if it has been some time since it was reviewed last (we recommend every four to five years) it would be highly advisable to do so.
A popular Will for couples is the Mirror Will. A Mirror Will is one of two Wills, created for someone who is either married, in a civil partnership or cohabiting and want both Wills to be similarly drawn up. This will protect each other if one or both should die, and also protect any children. Although partners living together can just as easily have two separate Wills, making a Mirror Will can give reassurance to partners, especially in today’s more complex modern family setups, where the absence of a Will could mean your children or partner will not benefit from your estate. See information page on our Resources page to find out more.
Trusts
For most people, retirement should bring contentment and the knowledge that your affairs are all in order, so that you can enjoy this time with complete peace of mind. We can help you to ensure your assets are protected from third party intervention, so you can provide for a spouse or future generations in times to come. The use of trusts has become a popular method for resolving these issues.
Along with the use of Trusts it can often be beneficial to change the legal or beneficial ownership of property and assets in your estate either for estate or tax planning purposes or to simply clarify the intended legal position in respect of a beneficial interest in the property. This can be achieved in your lifetime by transferring the legal title of a property or asset or by producing a declaration of Trust over the asset to protect a beneficial interest.
Trusts can be a useful way for you to offer increased protection for your family. You should consider creating a Trust if:
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You have children from a previous relationship
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You want to protect your estate from being assessed for care costs
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You want to look after the interests of a vulnerable or disabled person after you die
A Trust is a legal arrangement that makes someone responsible for assets or property for the benefit of someone else. A Trust can be included as part of your Will or in a Trust Deed and can set up for use either during lifetime or after death.
One of the most common purposes of the Trust is for partners who are looking to split ownership on the family home so that each partner has a half-share. Rather than leaving this to each other, they leave their share to a Trust, which comes into effect on the death of the first partner. This is a common set up for couples with children from a previous relationship, plus many other scenarios.
Other Types of Trust
There are many types of Trusts, which can be set up for many different reasons. A Trust may be created for the financial benefit of the person creating the Trust, a surviving spouse or child, a person with special needs, or a vulnerable person, or for a charitable purpose.
As well as providing a professional Trust drafting service for Asset Protection Trusts we also supply a complete range of Trust documents to suit all circumstances including, but not limited to, Settlor Excluded Trusts used for inheritance tax planning, Life Interest Trusts, Pilot Trusts, Personal Injury Trusts and Trusts for vulnerable or disabled beneficiaries. Choosing the right type of Trust for you and your partner is crucial for estate, tax and retirement planning purposes. Speak to one our experienced Trust & Estate Planning team to see how we can help you.
Lasting Power of Attorney (LPA)
If you lose mental capacity without a power of attorney set up, your loved ones will need to apply through court for a deputyship order to make decisions for you, something that is often a long and expensive process. By nominating an attorney, you can choose someone you can trust to take care of your affairs, and you can have peace of mind in the knowledge that your wishes and best interests will be taken care of.
A Lasting Power of Attorney is a legal document stating the authority given by one person to another to take care of their personal affairs and/or welfare. This can include making financial decisions, paying bills, making decisions about their home and property as well as making treatment and care decisions. In the absence of a power of attorney and in the event that you are unable to make decisions for yourself, your loved ones would have to apply for a deputyship order through the court. You will also not have any say as to who applies for the deputyship order. Putting a power of attorney in place in advance of a situation where you are unable to make decisions for yourself, can give assurance that your affairs and welfare will be looked after by someone you trust.
There are two types of power of attorney arrangements to consider; one for health and welfare, and another for property and finance. A Health and Welfare Lasting Power of Attorney allows your appointed attorney(s) to make decisions on healthcare and medical treatments as well as care such as nursing home choices and can consent or refuse treatment on your behalf, giving you the opportunity to have a degree of control over your future care where you are not able to make decisions yourself.
A Property and Financial Affairs Lasting Power of Attorney gives your chosen attorney(s) the authority to deal with your finances and property matter. The attorney is under obligation only to act in your best interests at all times, and various safeguards exist to ensure this. For more information, see our Resources page.
Parents With
Children
If you have recently had a baby, you should consider writing a Will if you haven’t already done so.
A Will is more crucial than ever once you have a family. Not only will it mean you can provide for your child in your Will, or create a Trust to provide a regular income for your child, but it can also mean your child will be cared for as you wish should you die before they grow up. Speak to one of our professional Will & Estate Planning team if you are about to have or have recently had a baby. We can advise you on the different steps to take to ensure the security of your family, giving you peace of mind for the future.
Unmarried Couple
If you are an unmarried parent of a child, there are some important considerations in terms of your Will. Not only could your partner be without a home, leaving the baby and partner homeless if you die, but the baby may not inherit from you depending on your circumstances. A married father will be given parental responsibility in respect of the child automatically, however unmarried fathers may not.
Appointing a Guardian
You can also specify who should be guardian of your child, should you die before they reach the age of eighteen. This is extremely important, because failure to do so would mean the court will appoint a guardian. Until a guardian is assigned, your child could be put into the care of social services. The court does not always get it right in these situations, and your child could be raised by someone you may not have wished to appoint yourself. Your chosen guardian would be responsible for providing a home and daily care, be responsible and make decisions regarding your child’s welfare, education and health so the decision should be made carefully. A verbal agreement between family or friends will not be sufficient to satisfy the court.
Choosing a Suitable Guardian
You can choose whoever you wish to be a guardian. The law, however, stipulates that guardians must be mentally capable for the role, and be over eighteen. Picking a suitable guardian for your child has further considerations apart from choosing someone you trust to have your child’s best interest at heart. Other factors must be considered, such as whether they possess the same fundamental beliefs as you do, what their religious or moral beliefs are; whether their opinions on education, schooling, lifestyle and diet match yours.
It is also important to consider where the guardians live, and whether appointing someone is going to mean your child will need to be uprooted from their community and change schools. Where your chosen guardian lives abroad, you will also need to think about potential problems such as obtaining visas; either for the guardian or your child. It is important to ensure that your wishes are communicated in advance to your guardian. You should have a discussion with your chosen guardian, which can help prepare your guardian for the responsibility should it ever be necessary.
Parents With
Grandchildren
The arrival of a new grandchild is an exciting time, but you might be wondering if your Will is doing enough to make provision for the latest arrival.
Speak to one of our team today to find out the various ways you can provide for your grandchild in the future. Our friendly Will & Estate Planning team can review your Will, and advise you on the options available.
Property Owners
When you purchase a new property, it is crucial you review your Will to ensure everything is in place. Often purchasing a new asset can upset the balance of a Will, and where the value of your new asset is large, it can mean your current Will no longer reflects your wishes accurately. If you don’t already have a Will in place, now is the time to think seriously about it. In the absence of a Will, your estate will be distributed according to intestacy rules – which may not reflect your wishes.
Contact our friendly team today for a consultation.
Married Couples
Married couples are strongly advised to write a Will if they haven’t already done so. Making a Will in contemplation of your marriage is important, but there can be complex considerations. Seeking expert advice could prove vital to ensure everything is taken care of. Contact our friendly team to speak to one of our experienced Will & Estate Planning team about what you can do to secure your family’s future.
Mirror Wills for Married Couples
Mirror Wills are a popular solution when both parties want the same out of their Wills. These are separate but highly similar, leaving the estate to the same beneficiaries. Mirror Wills are individual Wills, and can be changed or revoked at any time – you do not need your partner’s permission to make changes to your Mirror Will.
Writing a Mirror Will protects you and your partner’s financial future, particularly in situations where you are not automatically entitled to inherit the estate (e.g. if you are not married or in a civil partnership). The Mirror Will approach can ensure you or your partner will not be left without a home or financial security – an all too common occurrence where a person dies intestate. Careful planning for the future will ensure everything is taken care of, giving you peace of mind.
Marriage & Your Inheritance
Making a Will is a reliable way to ensure that a partner is provided for, and any children you may have. Any Will created before a marriage or civil partnership is automatically revoked by that marriage or civil partnership, unless the Will is made “in contemplation” of the marriage. One of the benefits of being married or in a civil partnership is that couples can leave everything to one partner and be exempt from inheritance tax. The surviving spouse can avoid inheritance tax up to a value of £650,000 this is double the usual threshold of £325,000, as a spouse can transfer any remaining inheritance tax threshold to the other.
In April 2017 the residential nil rate band came into effect. Speak to one of our Trust & Estate Planning team about how this affects you.
Trusts for Asset Protection
An Asset Protection Trust is a Trust which allows a person to transfer assets into Trust immediately rather than planning for a transfer on death. This type of Trust is designed to protect assets for future beneficiaries and to ensure that the assets ultimately pass to the chosen beneficiaries. This arrangement will suit a married person with children from a previous relationship. Because the assets are held in a Trust, they are not held within your distributable estate on your death, which means that the costs of probate may be reduced and any delay in dealing with the Trust assets could be avoided.
This also means that the distribution of the Trust assets cannot be influenced by events on your death as you have already ring-fenced the assets for your chosen beneficiaries. You will also have appointed trustees you can rely on to ensure the distribution takes place as, and when, you would want it to.
Call us to learn more about how creating a Trust can benefit you and your loved ones. You may also find our Resources page on Trust Wills and Trusts useful if you want to read more about our Trusts services.
Unmarried
Couples
Unmarried couples are urged to write a Will if they do not already have one in place. Even if you have been living with your partner for many years, and have children together, your partner will not be entitled to any inheritance when you die. On top of this, unmarried couples do not receive the same tax benefits as married couples, which means your loved ones could be looking at a large inheritance tax bill down the line. Our Will & Estate Planning team can advise you on inheritance tax planning for unmarried couples, as well as taking you smoothly through the entire Will writing process.
Wills & Care
Home Fees
How to protect your assets from care home fees?
At Wills Worldwide, we understand that you would want future generations to benefit as much as possible from your estate. A common problem faced by families today is that many are forced to sell their family home to pay for nursing home fees. This is an unfortunate reality, where children are no longer able to inherit a share of the family home because of the cost of care. Home care fees can be extremely costly, and a large number of elderly people do not qualify for financial support.
Tenants in Common vs. Joint Ownership
Most couples own their home as joint tenants, which means when the first partner dies, the survivor may need to sell the family home to pay for a nursing home. This can often swallow up most or all the value of a property until the survivor’s assets have been brought into the threshold for financial support. Owning the marital home as tenants in common, however, means that only the half owned by the survivor is at risk from care bills, which means you have half the value of the family home to bequeath to your loved ones. To do this, the property is linked to a Life Interest Trust. A Life Interest Trust is an arrangement under which someone is given the right to occupy the property during their lifetime without ever becoming the owner.
The Life Interest Trust of a jointly owned property will only work where the house is owned by the couple as tenants in common, however most couples purchase the family home as joint tenants. Owning property as tenants in common with your partner means you both own the property, but own separate shares in the property. Usually, most couples each own a 50% share, but if one person is investing more of their money into the property than the other, the shares can reflect the amount each person has invested. When a tenant in common dies, their share of the property passes into their estate and is dealt with as per the terms of their Will. Owning your property as joint tenants means there is no separate distinction between tenants and you must act together as a single owner. It is not possible to donate your share of the property in your Will, nor do you own any specific shares in the property. When one of the tenants die, the ownership of the tenancy automatically transfers to the surviving owner.
Life Interest Trusts
The Will should set out details of who should be trustees for the Trust – typically this is the children, but you can appoint someone else if you wish. It will also lay out specifics such as when the Trust should end. This is typically on the death or remarriage of the surviving spouse. It should also state that, while the Trust is in place, the surviving spouse can live in the property without interference, but will not be able to sell or re-mortgage without the consent of the trustees. Our Trust & Estate Planning team would be delighted to speak with you about the process involved, so you and your partner can have peace of mind for the future.
If you are considering setting up a Life Interest Trust, our Trust & Estate Planning team can check the status of your home ownership by doing a Land Registry search. If the house is held as joint tenants, we will draw up the necessary documentation to sever the tenancy, changing it so that both partners hold the ownership as tenants in common. To do this, our Trust & Estate Planning team will prepare what is known as a “declaration of severance of the joint tenancy”, which confirms that the joint tenancy has ended, and guide you smoothly through the process of changing ownership and setting up the Trust. Our friendly Trust & Estate Planning team will offer advice tailored to your needs every step of the way on the best solutions for you and your family’s future.