Wills and Lifetime Planning

Wills and Lifetime Planning Solicitors

Like most people, you will probably write your will to banish any worries about how your family and other loved ones will cope financially following your death. It is also usually your first step in putting plans in place to minimise your liability for inheritance tax to protect any inheritances.

We will write your will in clear language, with little or no legal jargon, so that you can understand what we have prepared without having to reach for the dictionary. In this way, we will ensure that, no matter how complex your family life and other relationships, your will accurately reflects your wishes.

What is lifetime planning and why should I do it?

Lifetime planning involves making financial and legal plans such as creating a will and setting up trusts to ensure your assets are protected and preserved.

By managing your affairs and making plans for the future you can ensure that you have control over the distribution of your assets, your loved ones are provided for, tax liabilities are minimised, and you are covered in case of medical emergencies or incapacity.

How can I pass on my digital assets when I die?

If you haven’t already made a will we would recommend doing so, as this sets out what you want to happen to your assets when you die and can include your digital assets. If you do not make a will your digital assets will pass on with the rest of your assets under intestacy rules, which means that if you haven’t made relatives aware of how to access your accounts or provided login details then they could be lost forever.

When considering your digital assets make sure you include online banks, payment accounts such as Paypal, graphics and digital artwork, monetised social media accounts, online gaming credits and any cryptocurrencies or crypto assets, as well as assets that don’t have monetary value but may have sentimental value such as photos and videos, including your login details, steps for accessing them and who you want the digital assets to pass to.

What is a Lasting Power of Attorney?

A lasting power of attorney (LPA) is a legal document which lets you appoint one or more people (attorneys) to help you make decisions or to make decisions on your behalf.

There are two types of LPA: health and welfare and property and financial affairs. A health and welfare LPA can only be used when you’re unable to make your own decisions and can give your attorney the power to make decisions regarding your medical care, whether you should move into a care home, your daily routine and life-sustaining treatment. A financial affairs LPA can be used as soon as it’s registered and gives your attorney the power to make decisions for you regarding paying your bills, selling your home, collecting a pension or benefits, or managing a bank or building society account.

How can I minimise inheritance tax on my assets?

There are several ways you can minimise the amount of inheritance tax you have to pay on your assets, including the following:

• Making gifts-the amount of inheritance tax you can save by making gifts depends on how you structure the gift. If you make a gift outright (a potentially exempt transfer) then unless you die within 7 years of making the gift, there will be no inheritance tax to pay. You can also make gifts out of income and chargeable lifetime transfers.
• Making a will-this helps you keep control over your assets and decide how they will be distributed when you die.
• Using your pension-most pensions can be passed on tax-free, depending on the type of pension you have, because they are considered as being outside of your estate.
• Take advantage of exemptions such as the nil rate band/inheritance tax threshold and the residence nil rate band which combined provides each individual with an allowance of £500,000 that can be gifted without paying inheritance tax.
• Use your life insurance policy-if you place this ‘in trust’ it will be exempt from inheritance tax.

Use trusts-the assets put in trusts are not included in your estate for inheritance tax, however as with making gifts, inheritance tax will apply if you die within 7 years of making the trust.

Why use Rothera Bray for wills and lifetime planning?

Our advice on wills covers:

• Gifts to members of your family
• Issues in wills such as guardianship, adoption and divorce
• Preparation of wills and trusts
• Reviewing and amending wills

We store wills free of charge once they have been signed and will send you a photocopy for your own records.

We will be upfront with you about the cost of our services and have ‘fixed-fee’ pricing for making wills.

Our advice on lifetime planning will cover:

• Lasting power of attorney
• Long term care planning
• Inheritance tax, income tax and capital gains tax planning
• Trusts
• Guardians
• Living Wills