Estate Planning Advice

Estate planning can be intimidating and take time. Estate planning can be simplified, but it’s crucial to recognise that many factors are at play. In this blog, we explain estate planning procedures and offer advice on how to make the process as simple as possible.

What does ‘Estate’ Mean?

Your estate is all of your material belongings, investments, and interests. It is the sum of all that you leave behind once you die. Property, investments, savings, pensions, automobiles, antiques, priceless collections such as artwork and records, and anything else with monetary or sentimental value are all included.

Getting a realistic appraisal of your property and other assets is crucial, as interest rates and house values are constantly fluctuating. When determining your estate, you should take into account the current 40% inheritance tax rate for non-spouses on any amount over £325,000. For more information on how Inheritance Tax works: thresholds, rules and allowances, the UK Gov website has more information.

Writing a Will

Although it is believed that over half of adults in the UK do not have a will, every adult should create one. Creating a will ensures your estate is distributed according to your wishes. If you pass away without a legally enforceable will, the intestacy rules take effect. To draft a custom, legally binding will, choose a professional will-writing company, such as IWC Probate Services. Everybody will have different preferences about their assets, so it’s crucial to create a will and update it every few years or after significant life events. This covers births, marriages, and deaths. Here are some points to consider when making your will:

• Do you have a guardian in mind if you have young children?
• Are you planning a funeral? Many people have preferences when it comes to funeral arrangements (burial, cremation, everyone wearing colour, etc.).
• How is your estate being divided? 
• Are there any noteworthy details you would like to mention that others might not consider important? (Photos, correspondence, etc.)
• Would you like to leave a certain amount to a charity?

Trusts

Some people decide to create a trust. This enables you to transfer assets from your estate into the trust, safeguarding them for future generations while generating income for designated beneficiaries.

Power of Attorney 

In the event that you lose capacity, an LPA enables you to designate dependable lawyers—friends or family—to handle your financial matters. Property and Financial Affairs and Health and Welfare are the two categories of LPA. Read more on lasting power of attorney processes here. For more information on how to manage a lasting power of attorney click here.

Contact Probate Forms for probate advice on 0209 9859553.