What is
Intestacy?

Intestacy can occur when a person dies without leaving a valid Will, where they have revoked their Will or where their Will is void. There may also be circumstances in which a partial intestacy occurs, this could happen where there is a valid Will but it fails to deal with all of the deceased’s Estate, where a Will has been partially revoked, where a residuary beneficiary predeceases the deceased who made the Will or where a residuary clause within the Will is ineffective.

Where there is an intestacy (whether completely or partially) it means that the Estate, of the deceased, will be administered in accordance with the Rules of Intestacy.

The Rules of Intestacy are set out in law, are very specific and may not be what the deceased wanted to happen. However, without a Will the wishes of the deceased cannot be carried out.

Where a person leaves a Will, an Executor is appointed (within the Will) to administer their Estate upon their death. When there is no will and a person dies intestate, a Personal Representative will apply to administer their Estate, they are known as an Administrator and will apply for Letters of Administration (as opposed to a Grant of Probate that is applied for when there is a Will).

It is important to note that you must always use the Law of Intestacy in place at THE TIME THE DECEASED DIED not those in place at the date when the Estate is administered.

As a brief overview, the ‘New Rules’ of Intestacy (Inheritance and Trustees’ Powers Act 2014) states that:

where there is a spouse and NO children, the whole Estate passes to the spouse
where there is a spouse AND children,
- (if the deceased died before 6 February 2020) the spouse gets the first £250,000;
- (if the deceased died after 6 February 2020) the spouse gets the first £270,000;
- The remainder is divided in HALF, the spouse takes one half absolutely, the children take the other half in equal shares;
where there is NO surviving spouse then the following are considered, in order:
- children;
- parents (equally if both alive);
- siblings of whole blood;
- siblings of half blood;
- grandparents (equally if more than one);
- uncles and aunts of whole blood;
- uncles and aunts of half blood;
- Crown (Bona Vacantia)

Where the children of the deceased have predeceased them, if they have left children of their own (grandchildren of the deceased) they will take the share that their parent would have taken had their parent been alive.

REMEMBER:
You do not have to deal with Probate, whether there is a Will or not, alone and you can always seek professional advice, guidance and support.

If you would like to have a free chat about your existing Will or making a new Will, please contact us on info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

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FREE Consultation?

18th February 202118th February 2021

The Roles & Risks of an Executor

The Roles & Risks of an Executor

As we always say it is an honour to be asked to be an executor for someone; it shows that they really trust you. However, it can be a burden and the role brings with it great responsibility.

Here we have a look at this in a bit more details…

So, let’s start at the very beginning:

What is an Executor?

“A person or institution appointed by a testor [the person writing the Will] to carry out the terms of their Will.”

Where there is no Will, the person that takes on this role is known as an Administrator, rather than an Executor.

The Role of an Executor (or Administrator)

So, now we know that the Executor is responsible for carrying out the terms of a Will, we will have a brief look at exactly what that entails and what other duties form part of this:

Contacting utility companies;
Putting the necessary insurances in place;
Obtaining property valuation;
Obtaining contents valuations;
Redirection of post;
Transferring property into the Beneficiaries names or selling (as required);
Valuing Estate assets;
Valuing Estate liabilities;
Applying for a Grant of Probate;
Completion of Inheritance Tax forms;
Calculating Inheritance Tax;
Paying Inheritance Tax within HMRC guidelines and deadlines;
Completion of Income Tax forms (for the year of death and period following death);
Consideration of Capital Gains Tax;
Set up any Trusts set out within the Will;
Sell or Transfer any Shares;
Pay all Estate debts and liabilities;
Distribute assets and Estate funds to the Beneficiaries (and obtain receipts);
Produce Estate Accounts.

The Risks taken on by an Executor

As you can see the role of an Executor is not one to be taken lightly and can be quite lengthy, depending on the Estate that you are administering.

It is also worth noting that the Executor takes on a legal obligation when accepting their position as Executor as well as financial risk.

Ignorance is no defence and so an Executor with a lack of experience and/or knowledge can quickly become overwhelmed.

However, it is important to remember that an Executor does not have to do everything on their own…help is available and it is okay to ask for help!

Whether you engage a professional or spread the burden among family members that have experience in dealing with such circumstances to help relieve some of the pressure, it is possible to reduce your exposure and risk as an executor.

If you would like to have a free chat about your Will or acting as an Executor, please contact us on info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

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9th December 20206th January 2021

Probate: The Basics

Probate:
The Basics

As a continuation of our series, ‘The Basics’, this week we are looking at…PROBATE.

We thought we would go back to the basics and answer some of the questions we get asked:

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What is Probate?

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Do I need to carry out Probate?

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Where do I start with Probate?

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What is involved in obtaining Probate? OR

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What is the Probate Process?

So, let’s get going…

What is Probate?

Probate is the process of dealing with someone’s Estate when they pass away. A person’s Estate will include their property, money and personal possessions (everything that they own) and the Probate process will involve the collecting in of all the Estate assets, paying off any debts and liabilities, and then distributing the remaining assets to the beneficiaries.

Do I need to carry out Probate?

Not always! Whether you need to carry out Probate or not, will depend on the size of the Estate that needs to be administered.

However, as a general rule of thumb, where there is a Property involved, Probate is likely to be necessary.

Many firms and solicitors, including ours, offer a free consultation – so, if you aren’t sure whether Probate is required on an Estate that you are dealing with, take advantage of a free consultation.

Where do I start with Probate?

This one can always be a bit tricky, as when the time comes to carry out Probate it is often the first time that the person dealing with it, has ever had to do the process.

So, where do we start?

How you start with the Probate process will depend on whether the deceased had a Will or not.

If the deceased had a Will, the Executors will need to begin by obtaining a Grant of Probate, if there is no Will then Letters of Administration will need to be applied for. Both a Grant of Probate and Letters of Administration are the legal documentation that allow the Estate of the deceased to be administered in accordance with the Will (if there is one) or by the Rules of Intestacy (where there is no Will).

What is involved in the Probate Process?

As we have said above, put simply, the Probate Process is merely the task of collecting in all the assets (property, monies, possessions, belongings) of the deceased, paying off any debts and liabilities (including any funeral and testamentary expenses, as well as paying any Inheritance Tax that is due on the Estate) and then distributing the remaining assets (or value thereof) to their beneficiaries. The beneficiaries will be those stated in the Will, if a Will was left, of those set out in the Rules of Intestacy, where there is no Will. If Inheritance Tax is due, it is advised to seek Professional advice to make sure you take advantage of all the Tax reliefs available.

If you would like to have a free consultation, or have any questions, please contact us on info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

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want to book a
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17th September 202017th September 2020

What is the role of a Trustee?

What is the role of a Trustee?

You may have been appointed as a Trustee in someone’s Will or thinking about appointing someone you trust as a Trustee within your own Will, BUT what does it actually mean and what does the Trustee do?

Let’s take a look…

A Trustee is someone appointed to look after and manage the assets within a Trust and administer/distribute the Trust in accordance with the instructions set out.

A Trustee must always act in the best interests of the beneficiary, act honestly and fairly towards the beneficiaries of the Trust, whilst ensuring that they follow the terms of the Trust.

When appointing Trustees within your Will (perhaps for a Trust where your children, grandchildren or great-grandchildren, will be the beneficiaries, whilst under the age of 18), you can appoint a maximum of four Trustees, although you can appoint reserve Trustees if you wish. In the majority of cases people will choose the same executors and Trustees however, this is not always the case and you can appoint different Trustees and Executors.

Who to choose as a Trustee…

If you are placing property or land into a Trust, then you will need a minimum of two Trustees.

After knowing how many Trustees you need, you need to have a think about WHO would be the best Trustees.

Trustees must be at least 18 years of age and able to take on the role. Now, this may sound obvious but taking on the role and responsibility as a Trustee can be more suited to some than others and just because someone has reached the age of 18 does not necessarily mean they are able to take on such a responsibility.

Another consideration to think about is; your Trustees MUST be able to work together. Where you have more than one Trustee they must be able to make a UNANIMOUS decision before an action is taken and thus being able to work together is imperative.

It may go without saying, BUT your Trustees must have capacity, be of sound mind and be trustworthy.

Trustees can be your family or close friends, whilst others opt for appointing professionals (especially where the Estate may be quite complex). However, even if a professional is not appointed, a family or friend that is appointed as a Trustee can always seek professional help as and when required if they think it is necessary.

So, what is the role of the Trustee?

As we have said, the Trustee must act in accordance with the terms of the trust and always act in the beneficiaries best interests, but additional responsibilities include:

Act fairly (this is important where there is more than one beneficiary);
Protect the assets that are within the Trust;
Insure the assets of the Trust if necessary;
Distribute the income of the Trust to the beneficiaries;
Distribute the capital to the beneficiaries;
Keep accounts and an accounting history of all transactions;
Complete Tax Returns and pay any tax that may be due to HMRC;
Declare all income and Capital Gains Tax that is payable;
If Inheritance Tax become payable, notify HMRC;
Keep a record of any income and expenses from the Trust;
Take reasonable care when making any investments;
Register the Trust;
Act in accordance with the Trustee Act 2000.

Remember, ALL Trustees must act UNANIMOUSLY.

Trustees must not personally benefit from the Trust.

All this may seem a large burden to place on your Trustees but professional help is always available to Trustees to support with managing trusts if required.

If you would like to have a free chat about your options or making a Will, please contact us on info@TotalLegacyCare.co.uk
or 01727 865 121

Leah Waller

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want to book a
FREE Consultation?

23rd July 202023rd July 2020

How to increase your Inheritance Tax Allowance to £1million

How to increase your Inheritance Tax Allowance to £1million

We work hard for most of our lives to provide an inheritance for our loved ones and so wanting to increase our Inheritance Tax Allowance (reducing the amount paid in Inheritance Tax) is a considerable concern for many.

Inheritance Tax is payable at 40% upon death where an estate exceeds the Inheritance Tax Allowance, this is legally termed the Nil Rate Band (a personal allowance, that each individual is able to gift, upon death, without attracting any Inheritance Tax – for 2020/21 this is £325,000 per person).

So, how do we increase £325,000 to £1million?

So, as we now know, each person is entitled to pass £325,000 (2020/21) to their beneficiaries without paying any Inheritance Tax AND…

Where you are passing your residential property to a direct descendent (children, grandchildren, great-grandchildren, step-children, adopted children or foster children), you can claim an additional allowance, called the RESIDENTIAL NIL RATE BAND, giving you an extra £175,000 (2020/21) to pass to your beneficiaries (if they are direct descendants), without paying any Inheritance Tax.

Thus increasing your Inheritance Tax Allowance to £500,000.

So, where does the other £500,000 come from?

Your NIL RATE BAND (£325,000) and RESIDENTIAL NIL RATE BAND (£175,000) is transferable between spouses and civil partners.

This means that if your partner passes before you and leaves their entire estate to you, then upon your death you will have the benefit of their Nil Rate Band and, if they had a Residential Property in their Estate, their Residential Nil Rate Band.

Thus, increasing your Inheritance Tax Allowance to £1million.

It is worth bearing in mind that if your estate is worth more than £2million then you lose the right to claim all of the Residential Nil Rate Band; for every £2 over the £2million valuation, you will lose £1 of the Residential Nil Rate Band.

If you would like to have a free chat about your Inheritance Tax liability and planning for the future, please contact us on 01727 865121 or drop us an email Info@TotalLegacyCare.co.uk

Leah Waller

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Have a Question or
want to book a
FREE Consultation?

19th March 202023rd April 2020

What can we learn from these celebrities’ deaths?

What can we learn from these celebrities' deaths?

We are always saying how important it is to have a Will (well, we would, wouldn’t we!).

However, celebrity deaths often highlight the importance of having a Will through the complications, legal battles and high-profile disputes that occur following their death.

So, what can we learn from them?

Keep Control of WHO you want to benefit from everything you have worked hard for

When Prince died in April 2016, he left behind an Estate that was worth an estimated £230million.

With no Will in place it was decided by a Probate Judge that his Estate would be divided between his sister and five half-siblings (despite numerous claims from alleged ex-wives, children, siblings and other relatives).

During his lifetime, Prince had many legal disputes with his half-siblings and thus it is unlikely he would have wanted them to benefit from his Estate, although we will never know.

Leaving a Will, ensures that you can leave what you want to WHO you want to benefit!

Be clear and specific

Although Audrey Hepburn died in 1993, due to her wishes being unclear, the legal battle in relation to her Estate was not resolved until 2015, some 22 years later!

Audrey Hepburn had left a Will but had stated that her ‘memorabilia’ would be split between her two sons although no instructions were given as to which items were to go to which son. The sons could not agree on the division of the memorabilia and thus a long and expensive legal battle ensued.

Giving detailed instructions within your Will (or even an attached Expression of Wishes) can save time, money and family feuds when you are no longer around.

It is never too early to put your Will in place (especially when you have children!)

Paul Walker died at just age 40 BUT he did leave a Will that he had made three years after the birth of his daughter, when he was just 28 (many of you may think this is young to make a Will!).

Paul Walker had left a brief Will but it was very clear that his Estate should pass to his daughter, in trust.

Paul Walker had also appointed his mother as legal Guardian of his daughter.

Putting Guardians in place is so important to ensure your children are brought up by the people YOU trust, should anything happen to you.

You can plan for more than just your finances, property and personal possessions

Muhammed Ali left behind an Estate worth approximately £61million and not only did he have the forethought to make a Will stating his wishes and who he wanted to benefit from his Estate but also how he wanted his funeral events and public memorial to be.

The extravagant events were carried out in accordance with his wishes, including a memorial service over several days, a festival and public memorial with over 15,000 of his fans.

Leaving your wishes regarding your funeral in your Will can ensure that there are no questions or disputes between loved ones as to what you want and relieves some of the emotional burden that could otherwise be felt.

If you have any questions or would like to consider planning for your future, by putting a Will in place, please call us on 01727 865121 or drop us an email Info@TotalLegacyCare.co.uk

Leah Waller

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want to book a
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5th March 202031st October 2020

What happens if I die in the UK but want my body to return to my home country?

What happens if I die in the UK but want my body to return to my home country?

Last time we had a look at what happens if you die abroad and want your body to be returned to the UK…

Today, we take a brief look at what happens to those individuals that die in the UK but want to be repatriated to their home country.

Where a death occurs in the UK, registration of that death must take place within the UK (as registration of a death in the UK is compulsory where the death occurred in the UK).

For foreign residents in the UK, permission must be sought from the Coroner for repatriation to take place. Your family (or the person dealing with your death) may also need to register the death with the Consulate abroad too, especially where you are wanting your body to be returned to that country.

In order to be returned to your home country, following death, the body must be embalmed and laid to rest in a special coffin. It will also be necessary for the Embalmer, the Coroner, Medical Staff and Environmental Health to complete all of the necessary paperwork before repatriation can take place.

If you have any questions or would like to consider planning for your future, by putting a Will, Lasting Power of Attorney or a Funeral Plan in place, please call us on 01727 865121 or drop us an email Info@TotalLegacyCare.co.uk

Leah Waller

Have a Question or
want to book a
FREE Consultation?

20th February 202022nd April 2020

What happens if I die abroad but want my body returned to the UK?

What happens if I die abroad but want my body returned to the UK?

Predicting the place, date and time of our death is near on impossible and so it is not unusual for a death to take place outside of the UK and needing the body to be returned for the Funeral and Burial or Cremation.

COSTS are a top concern when trying to get a body returned to the UK, following a death, and in some circumstances this may be covered by travel insurance but in other cases you may well be responsible for paying this. These costs can be extremely expensive and so when using a repatriation service it is very important to have an itemised quotation of exactly what services are included for what you are paying.

Practically though, what steps do you need to take?

You will need to obtain a Death Certificate for the individual from the country in which the death occurred and this will also need to be accompanied by a certified English translation (the British Consulate can assist with this). You will also require a certificate of embalming and permission to remove the deceased’s body from the country of death, again, the British Consulate will be able to assist with this.

The embalming certificate will need to confirm that the correct process has taken place and that the body has been embalmed and placed in a zinc-lined coffin ready for transportation back to the UK.

You may also find it useful to register the death with the British Consulate in the country where the death occurred and a UK Death Certificate may be obtained however, there may be an additional charge for this and this is not compulsory where you can obtain a certified English translation of the original Death Certificate.

Once you have all of the necessary paperwork and documentation you can then make arrangements for the body to be returned to the UK and again, the British consulate can advise as to Funeral Directors that can assist with this.

You will still need to contract the Register Office in the area that the funeral is taking place and confirm that the death has been registered abroad. You will then obtain a Certificate of no liability to register allowing the Funeral to proceed.

Alternatively, you may wish for a cremation to take place in the country that the death occurred in and for your ashes to be returned to the UK. This is possible, however, each country has their own rules in relation to transporting human ashes out of their country and so it is important to obtain advice from the British Consulate for that country in order that you can adhere to these.

If the cause of death was unknown then the Coroner may be involved and will hold an Inquest in the UK. However, it will not be possible to have the body cremated abroad where the cause of death is unknown and where an inquest is required upon return to the UK.

Leah Waller

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want to book a
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6th February 202023rd April 2020

When should I get a Will?

When should I get a Will?

We often get asked…

“Do I really need a Will, won’t everything just go to my children/husband/wife?”

Well, sadly it isn’t as simple as that (not many things are!).

You may have seen our flowchart of what happens if you die without a Will (also known as intestate) but here it is again:

So, as you can see, it is not as straightforward as you may have hoped.

It is not something we can predict (that is, when our time is up) however, it is something that we can plan for!

So, some of the stages in your life that you may want to consider putting a Will in place (if you haven’t already!) or reviewing your Will are:

Buying a Property

Whether you are buying a property to live in yourself, with someone else, or to rent out and use as an income, it is important to consider how that house is owned (solely, as Joint Tenants or as Tenants in Common) as this will have a bearing on what happens to the property upon your death.

If you are able to gift the property on your death (or part of the property) then your Will will determine exactly what happens to that property and who inherits.

If you are in doubt about how a current property of yours is held, or what consequences that has, please do get in touch and we can help.

Getting Married

When you get married, if you have no children and no Will in place, then everything will pass to your spouse upon your death.

However, when you have children, the first £250,000 (including the value of any property owned solely by you or as a Tenant in Common) will pass to your spouse along with all your possessions and the remainder will be split with your spouse receiving an interest in half and the remaining half being split equally between your children.

This may not be what you would want to happen and so making a Will is important.

Equally, where you marry for a second (or subsequent) time, you may want to protect some of you previous earnings and assets for children from a previous marriage or to dispose of in another way, rather than it all passing to your new spouse and so this is where a Will is extremely important.

A Will also becomes void on marriage (unless the Will states the intended marriage), this is something you need to consider and something that is not commonly known.

Becoming a Parent

We have discussed above how your assets are divided if you are married, have children but do not have a Will.

If you have children and are not married, then your assets are split equally between your children in the first instance.

There is no such thing as a ‘common-law husband or wife’ in relation to inheritance and so even if you have been ‘living as married’ your partner will not be entitled to any inheritance (unless they proceed with a lengthy legal claim under the Inheritance (Provision for Family and Dependants) Act 1975).

A Will allows you to put Trusts in place for your children so that you can set the age at which they inherit (rather than them inheriting at 18) and also allows you to provide for any vulnerable children that you may have, such as those with disabilities to ensure that their money is looked after and also doesn’t have any impact on their benefits in the future.

Another important aspect of a Will when you are a parent, is appointing Guardians!

Appointing Guardians in your Will gives you the opportunity to appoint the people that you trust to look after your children, and bring them up, should you no longer be around to do so. This saves any lengthy court cases and prevents the children from having to go into care or into the control of the Local Authorities whilst Legal Guardians are found for them.

These are just a few milestones that may trigger the need for a Will, we would encourage everyone over the age of 18 to get a Will (of course we would!) but apart from anything else it just means that you have peace of mind knowing that everything will be as YOU want it, and it removes that burden from your loved ones at what will already be a terribly difficult time for them.

How difficult is it to make a Will?

The process is quite simple, an initial meeting where we discuss your needs and take instructions should take no longer than an hour. Your Will writer can then draft the documents and arrange another meeting to sign everything off and make it legally valid. The process can be completed in just a few days depending on how complex your Will may be.

If you have any questions, would like to consider putting a Will in place or a FREE review of your existing Will, please call us on 01727 865121 or drop us an email Info@TotalLegacyCare.co.uk

Leah Waller

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23rd January 202023rd April 2020

There are two certainties in life…

There are two certainties in life…

Benjamin Franklin is famous for stating:

...in this world nothing can be said to be certain, except death and taxes.

Benjamin Franklin

Now, we are only too aware that many people don’t want to talk about death, let alone their own or that of a loved one BUT this leaves a heavy burden on your surviving loved ones upon your death, not only emotionally but possibly even financially.

When getting sorted for when the time comes, one thing that we cannot recommend highly enough is a FUNERAL PLAN.

Putting a Funeral Plan in place gives you the peace of mind that your Funeral is organised, how you want and (most importantly, for many!) the Funeral Director services are paid for in advance.

This not only has the benefit of putting your mind at ease but also takes the financial burden off of your loved one at what is already a difficult time.

We set out below a table of the average cost of a Funeral throughout the years, as well as the predicted costs for 2020 and 2023, and you will see just how much those costs are increasing. It doesn’t take a genius to see that these increases are far above those of inflation!

Putting a Funeral Plan in place guarantees that all of the Funeral Directors service costs are covered and takes away the stress of putting the arrangements in place as this can all be done with a call to activate the plan.

If you would like more information or to discuss putting a funeral plan in place, call us on 01727 865 121 or email us at info@TotalLegacyCare.co.uk for a free, relaxed and considerate discussion on how we can help

Leah Waller

Have a Question or
want to book a
FREE Consultation?

What isIntestacy?

It is important to note that you must always use the Law of Intestacy in place at THE TIME THE DECEASED DIED not those in place at the date when the Estate is administered.

REMEMBER:You do not have to deal with Probate, whether there is a Will or not, alone and you can always seek professional advice, guidance and support.

The Roles & Risks of an Executor

What is an Executor?

The Role of an Executor (or Administrator)

The Risks taken on by an Executor

Probate:The Basics

?

?

?

?

?

What is Probate?

Do I need to carry out Probate?

Where do I start with Probate?

What is involved in the Probate Process?

What is the role of a Trustee?

Who to choose as a Trustee…

So, what is the role of the Trustee?

How to increase your Inheritance Tax Allowance to £1million

So, how do we increase £325,000 to £1million?

So, where does the other £500,000 come from?

What can we learn from these celebrities' deaths?

What happens if I die in the UK but want my body to return to my home country?

What happens if I die abroad but want my body returned to the UK?

When should I get a Will?

There are two certainties in life…

What is
Intestacy?

REMEMBER:
You do not have to deal with Probate, whether there is a Will or not, alone and you can always seek professional advice, guidance and support.

Probate:
The Basics