Estate Planning Service

Some of the main aspects of our estate planning service are set out below:

‘Wills’

Effective Wills can ensure that your estate passes to your chosen beneficiaries and where possible in law, protected from attack from 3^rd parties. Wills with trusts can provide ‘succession interests’ ensuring that assets pass to one beneficiary initially (such as a surviving spouse) and then ultimately protected to pass on to  children and grandchildren. There are many aspects to cover with Will preparation and we have a dedicated set of notes/guidance for proper considerations for Wills and trusts.  We will not double up on that information in this leaflet. If you need anything further by way of information or a questionnaire to complete, let us know.

‘Lifetime Gifting’

If you can afford it, gifting assets away during your lifetime is of course very rewarding. Benefits to the recipient might seem obvious but there are more benefits than might seem first apparent:

For the recipient

• They receive their gift sooner than otherwise they would do if receiving after death. As such, they have practical access to the use of the asset or capital at an earlier stage;
• They might have to pay less Inheritance Tax (IHT) or less IHT than if they inherited on death;
• They have the chance to thank you personally!

For you (the donor of the gift), there are benefits:

• You have the chance to receive the thanks of the recipient!
• You see the recipient having practical use and enjoyment of the asset;
• You may be able to pass more value to the recipient as the amount might not be attacked from an IHT perspective (if it is planned carefully and properly).
• You may help the beneficiaries in your Will (by reducing your IHT bill);
• By giving away in your lifetime using a trust structure, you can still retain a degree of control on the assets as trustees for your lifetime whilst putting in place a family protection structure.
• Remember, making regular gifts from your surplus income can reduce your IHT bill and they are not part of your ‘7 year rule’ gift making.

What else is in the Estate Planning Service?

During your Lifetime: for your benefit

Lasting Powers of Attorney (LPA): ensuring that your chosen family members (or friends) are appointed to take decisions on your behalf in the event of future mental or physical incapacity.  We hare a dedicated set of notes on Lasting Powers of Attorney and Court of Protection to guide you through the process.

Financial planning for your retirement:  working with your financial advisors we can help you plan your financial retirement arrangements. We create a spreadsheet confirming your asset situation and IHT position, which is often sent (with your agreement) to your other advisors so they can utilise this when advising you financially or from a tax perspective.

On death: for your family

Executor guidance:  we guide your executors and trustees through their responsibilities and duties to ensure that your estate is handled in the most effective and efficient manner.  We will always aim to contact your executors as part of you preparing your Will so that they have a point of contact in the event of them having to take up their role.  We have a dedicated set of guidance notes for the Executor role and please ask us for a copy.

Advice for Guardians: if guardians are appointed to look after under age children, we can assist in how this process is to be managed. The Will provides the framework for the legal appointment of Guardians but often the scope is kept sufficiently flexible so as to enable a proper application of the role and responsibilities.  Guidance at the appropriate time (whether before death or after it) is useful and to provide peace of mind.

Funeral planning:  we can advise you on the process of funeral planning and put you in touch with our preferred provider to make all the arrangements.  We strongly recommend you consider a funeral plan.  Not only does it provide peace of mind for you, but it also guides the family and takes some of the practical pressure off of them at the time.

Inheritance Tax Planning: planning the gifting of your estate to mitigate the reduction in the benefit your family members receive is an important part of our estate planning process.  Please ask for our set of dedicated guidance notes in this area;

Planning for Probate and estate administration: providing all the advice and assistance to Executors and beneficiaries in the administration of the Will and the filing of IHT accounts.

Ongoing Trust administration: many Wills contain trust provisions which might survive successive generations;  ongoing support and expertise is available here.

Things to consider when Estate Planning

Here is a list of some of the matters to consider with us:

• For your estate administration, who to choose as Executors and guardians and what those roles actually involve in practice.
• Who would you appoint as your Attorneys in the event of any future mental or physical incapacity? Would you like spouse and children appointed together?
• Inheritance tax planning within the Wills for people with estates in excess of the Inheritance Tax threshold (currently £325,000 per individual and £650,000 for a couple) or to claim the additional Residence Nil-Rate Band (RNRB) tax allowance of up to £1m per married couple.
• Is there a wish to protect your estate from third-party claims or attack on the assets passed to a beneficiary.
• Where estate passes to children, avoiding potential claims from a son-in-law or daughter-in-law on a marriage break-up or from outside parties.
• If you are giving money to Charity, how best to structure payments and whether a trust may be suitable.
• Dealing with substitute provisions contained in Wills in the event that your primary beneficiaries die before you.
• Adequately setting out your funeral provisions and wishes.
• Obtaining advice on how your Will would be administered and the current Probate procedures on death.
• Ensuring that the Will is ‘claim-proof’ in the event of queries on mental capacity or undue influence (professionally prepared Wills are unlikely to be challenged, assuming they are correctly drawn up by an experienced advisor).