What happens if I die without a Will?

We are always saying how important it is to have a Will in place – well, we would, wouldn’t we?

But, what happens if you don’t?

What happens to all of your hard-earned cash, property and possessions?

We have created a simple flowchart for you to have a look at to see exactly what would happen to all your worldly goods should anything happen to you and you have not got a Will in place…you may well be surprised who could get your hands on it!

And…even if this is where you would want it to go, without a Will in place, it could be a costly process for your loved ones to go through in order to access their Inheritance.

So, what does this all mean?

Let me set out for you the above…

The first consideration is whether you are married, if you are married and your spouse or civil partner survives you:

If the whole Estate is worth £250,000 or less
- your surviving spouse or civil partner will inherit your entire Estate
If your Estate is worth more than £250,000
- your surviving spouse or civil partner will inherit the first £250,000

- The remainder will be split as follows:
  - your surviving spouse or civil partner will receive a life interest in HALF the remainder (above £250,000)

- - The other half to be split between any surviving children (if your children predecease you, leaving children of their own, your grandchildren will inherit their parents’ share.

If you are NOT married then the order of inheritance is as follows (in equal shares):

Living Children / Grandchildren / Great Grandchildren*
Living Parents
Siblings*
Half-Siblings*
Grandparents
Uncles and Aunts*
Half-Uncles or Half-Aunts*
THE CROWN

*If the person listed prior to the * has predeceased you but has surviving children

then their children will inherit in their place.

In the list above, no-one further down the list can inherit if the group above can inherit, therefore, if there are no living children, grandchildren, great-grandchildren or parents then your siblings would inherit (or their children should your siblings have predeceased you). Your grandparents would NOT inherit however, as the group above them have.

You will see ‘THE CROWN’ at the bottom of the list. Yes, that’s right…if you leave no family (set out in the groups listed) then your whole Estate will pass to the crown – is that what you want?

The best and only way to ensure that your money goes exactly where you want it to and to who you want it to, is to get a Will in place.

If you would like to have a FREE chat about getting your Will in place, please contact us on info@TotalLegacyCare.co.uk or 01727 865 121

Neil Barras-Smith
& Leah Waller

Have a Question or
want to book a
FREE Consultation?

8th May 201923rd April 2020

What to do when a loved one dies…

What to do when a loved one dies...

Making the necessary arrangements after the death of a loved one is somewhat overwhelming and far from what we want to be doing. Below we have set out a few tips to set you in the right direction and always remember…you don’t need to do this alone!

Register the death

Registering the death must be done within five days and in order to do so, you will need the Medical Certificate (stating the cause of death).

You should consider how many certified copies of the Death Certificate you may need, as these may be needed to close accounts, to access funds, liaise with companies, collect in the assets and to complete probate.

When registering the death you will also receive a Certificate for Burial or Cremation.

Look for the Will

The Will, if there is one, is a very important document and may well contain the funeral wishes of the deceased.

Look for documents in relation to medical research and organ donation

These wishes may be contained in the Will but may be elsewhere.

Arrange the funeral

As said above, the Will or a Letter of Wishes (often stored with the Will) may include the funeral wishes or the deceased may well have had a funeral plan (that may also have been pre-paid) in place.

A prearranged funeral can save a lot of emotional (not to mention, financial) burden, when the time comes!

Ensure the deceased’s home is secure

This is important but may not be necessary if the deceased was not living alone and, of course, will not be necessary, if the deceased lived in a residential, care or nursing home.

Ensure their possessions safe

Just as important as the home, is the deceased’s personal possessions. It may also be apt to consider whether the deceased had a gun licence, that needs attention (as well as the weapons themselves) and whether there are any pets that need taking care of.

Find insurance documentation and inform the insurer of the death

You will need to notify the insurance companies of the death and ensure that adequate home and contents insurance is in place

Inform the DWP Bereavement Service of the death

Inform the necessary government departments of the death (“Tell us once” service)

This service will save you from providing the same information to many authorities. You will also need to return the deceased’s Passport and Driving Licence.

Inform other companies / organisations of the death

This may well include the following:

- Employer (if applicable)

- Dentist / Podiatrist / Chiropodist / Health care etc.

- Carers / Domestic or Residential Help / Cleaners etc.

- Banks

- Building Societies

- National Savings

- Insurance companies (Buildings / Contents / Car / Life etc.)

- Pension providers

- Credit card providers

- Store card providers

- Mortgage company / Landlord / Local Authority / Housing Association

- Utility providers (Electric, Gas, Water, Telephone, TV, Internet, Broadband etc.)

Administer the Estate

After the above has been dealt with and the funeral has taken place will begin the process of administering the estate (often referred to as Probate) and this will include:

- Obtaining a Grant of Probate or Letters of Administration

- Collecting in and valuing assets

- Distribution of possessions (in accordance with any Will)

- Dealing with shares and investments

- Selling property

- Selling assets

- Consideration and payment of debts and liabilities

- Closing bank / building society accounts

- Rehoming pets

- Dealing with Inheritance Tax and Income Tax forms

As we have said, there is so much to consider and think about at such a difficult time but it is important to remember that you do not need to do it all alone!

If you would like to have a free chat about putting plans in place for yourself, or dealing with the loss of a loved one, please contact us on

info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

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Have a Question or
want to book a
FREE Consultation?

1st May 201923rd April 2020

Wills or Lasting Powers of Attorney: What is more important?

Wills or Lasting Powers of Attorney: What is more important?

Now, Martin Lewis the Money Saving Expert has been in trouble with the press recently as he has said that LPAs are more importantly than Wills. This caused huge controversy and saw the expert having to justify himself over-and-over on social media.

Here at TLC… we agree with him!

Wills are very important and we highly recommend everyone should get one in place to ensure their wishes are carried out exactly as they would like when they are no longer around. There are so many benefits to putting a Will in place that people, unfortunately, only come to realise when it’s too late.

But, as important as a Will is, it’s more intended for when you die.

An LPA is vital to ensure your are covered and protected DURING your lifetime.

An LPA allows someone that you trust to act on your behalf and make decisions that are in your best interests should you no longer be able to do so yourself. This can relate to both your health and welfare as well as your property and financial affairs.

We have written lots about the benefits of an LPA and why it is so important to have in place, so check out our articles on the topic if you would like to know more.

So, this is why we at TLC, and I personally, believe that LPAs are more important than a Will.

However, it this all could be down to perspective…

When looking at the importance of Wills and LPAs, let’s consider who’s perspective we are looking at it from and why that makes a difference.

For me, it’s more important to take the perspective of the individual who is making the Will or LPAs. For them having an LPA will benefit them during their lifetime, the Will only comes into effect when they are gone.

If you look at it from the other perspective, that of their loved ones that are left to deal with matters, which is more important for them? This may differ depending if the death is sudden and so a Will may be extremely useful, or whether the individual deteriorates and loses capacity and then the loved ones will also benefit from being able to assist and have the power given under the relevant LPA.

Without a Will:

Will the family know what the person’s funeral wishes were?
The person will die intestate, this means the Laws of Intestacy are to be followed and essentially this means the government decides where that individual’s money goes.

The family will need to carry out probate and go through the courts to be able to do so; this could be a lengthy, complicated and expensive process that could be avoided by putting a simple Will in place (and it costs a lot less too!).

At what is already a difficult time for the family, having a Will in place makes things a lot more simple, and although still difficult, it can prevent family arguments and tension.

Without an LPA:

If a person loses capacity and does not have an LPA in place then life becomes that little bit more complicated. A loved one, or carer, can apply to the Court of Protection for Deputyship (this is where the court appoint an Attorney to act for the person who has lost capacity), but this is a lengthy and extremely costly process. In the meantime you may struggle with the following:

Financial affairs:

Joint bank accounts may be frozen;
No one will have authority to access bank accounts in the person’s sole name to pay for expenses such as, grocery shopping, utilities & amenities and care costs to name but a few;
No one will have authority to speak with any financial institutions on behalf of the person;
No one will have authority to speak with any utility companies to ensure the provision of necessary utilities;
No one will have authority to deal with the property on person’s behalf making any decision regarding selling the property and moving the person into more appropriate accommodation for their care needs;
No one will have authority to speak with the Local Authority or the Department for Work and Pensions on behalf of the person to ensure the correct benefits and financial provisions are in place.

For the Health & Welfare side of things:

No one will have authority to give direction as to the person’s living arrangements or day-to-day activities/welfare;
No one will have authority to liaise with the person’s GP, Hospital staff or healthcare professionals;
No one will have authority to liaise with care home/ warden/ sheltered accommodation in relation to day-to-day care;
No one will have authority to liaise with Local Authority in relation to the person’s health and welfare issues.

So, to clarify, both a Will and LPAs are vitally important to put in place but we feel as though an LPA is more important to an individual DURING their lifetime.

If you would like to have a free chat about Wills or Lasting Powers of Attorney, please contact us on info@TotalLegacyCare.co.uk or 01727 865 121

Neil Barras-Smith

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want to book a
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24th April 201923rd April 2020

Inheriting Loyalty Points

Inheriting
Loyalty Points

Recent reports suggest that we (in the UK) accumulate £5.7billion in loyalty points EACH YEAR!

On average, most of us are members of five different loyalty schemes, each collecting points but a massive 93% of us are unaware that these can pass be passed on to a loved one when we die.

So, should we be including loyalty points and those details in our Wills? In short, YES!

Below, we take a brief look at three of the most popular loyalty schemes and how the accumulated points can be passed on following a death:

Nectar Card

Those of us with Nectar Cards are able to collect points with a number of different retailers (including Sainsbury’s) and to redeem those points against different brands.

Although Sainsburys policy states that the points are “personal to the Nectar account and cannot normally be transferred”, they can be transferred following death. In such circumstances the beneficiary must contact Nectar directly and request a transfer of the points.

Tesco Clubcard

The Tesco Clubcard allows members to collect a point for every £1 that is spent with Tesco (online and in store) and a point for every £2 that is spent on fuel, with the points then being transferred into vouchers for use in Tesco, for days out, eating out, travelling and other benefits.

In order to transfer the points accumulated by a deceased loved one, the beneficiary will need to contact Tesco Customer Service Centre to request closure of the deceased’s account and a transfer of the points to their existing Clubcard account or to a new Clubcard account.

Boots Advantage Card

With the Boots Advantage Card, you can collect four points for every £1 that is spent with Boots and those points can then be used as payment (one pence per point) in store or online.

Members can nominate a beneficiary to inherit their Boots Advantage Card points and members should get in touch with Boots Customer Care to arrange this.

So, leaving information as to the loyalty schemes you are part of, membership information (membership number, account numbers, passwords etc.) is important to allow your loved one’s to benefit from the loyalty points that you have collected.

If you would like a free consultation to discuss your Will in place, or putting a Will in place call us on 01727 865 121 or email us at info@TotalLegacyCare.co.uk

Leah Waller

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Got a Question or want to book a FREE Consultation?

17th April 201923rd April 2020

What happens to your social media accounts when you die?

What happens to your
social media accounts
when you die?

With so much of our lives now online, whether by choice or through companies operating primarily online, this means our digital presence is ever growing, but what happens to that when we die?

More importantly, what happens to our social media accounts, profiles and all of that information and photographs after our death? What would you want to happen?

A recent YouGov survey has revealed that:

67% of people wanted their social media accounts removed after their death
26% of people wanted the content of their social media accounts to pass to their loved ones once they have died; and
7% wanted their social media accounts to remain online.

Social media networks each have their own policies in relation to what happens to an account when a person dies…

FACEBOOK

Once the death is reported to Facebook, the individual’s page will be memorialised. However, an immediate family member can request that the page is removed completely.

Facebook also allows you to manage your page (whilst living) to plan for what you want to happen following your death, this includes setting a ‘legacy contact’ to manage parts of your page once it has been memorialised.

INSTAGRAM

As with Facebook, once the death is reported to Instagram, the individual’s page will be memorialised. However, an immediate family member can request that the page is removed completely.

TWITTER

If there is no activity on a Twitter account for a period of six months then Twitter will automatically delete the account.

GOOGLE

Google, similar to Facebook, provides an ‘Inactive Account Manager’ function that allows you to plan for what you want to happen following your death, including giving a loved one access to your information or requesting that your account is automatically deleted.

With so much now being conducted and stored online, this is an area that is certain to develop and progress. The amount (and importance) of the information, including irreplaceable photographs, that is stored online and on social media accounts means that their value is ever increasing and so it is not uncommon for individuals to include provisions for their social media accounts in their Wills and Letters of Wishes.

If you would like to discuss your digital legacy, or putting a Will in place, call us on 01727 865 121 or email us at info@TotalLegacyCare.co.uk for a free consultation

Leah Waller

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Got a Question or want to book a FREE Consultation?

10th April 201923rd April 2020

Should I write a Letter of Wishes?

Should I write a Letter of Wishes?

Perhaps we should start off by explaining what a Letter of Wishes is…

A Letter of Wishes can give a bit more detailed explanation to your Executors and Guardians as to how you would like things to happen following your death. However, a Letter of Wishes is not legally binding.

So, could you just write a Letter of Wishes, rather than a Will?

In short, no.

A Letter of Wishes is NOT legally binding, whereas a Will is. The Will will ensure that the specifics stated in your Will are put into action.

Your Will will set out exactly who you want as your Executors, Trustees and even the Guardians of your children, as well as who should benefit from your Estate and how it should be distributed.

So why have a Letter of Wishes?

Although your Will is legally binding, your Letter of Wishes can go a bit further and give guidance and advice to those that you have appointed under your Will.

Some of the main areas that are focussed on in a Letter of Wishes are:

Guidance for Guardians

Although your Will can state who you want to take care of your children should the worst happen, the Letter of Wishes can give more detailed guidance on the specifics as to how you would like your children to be raised and brought up. Of course, you will have appointed those that you trust implicitly as your Guardians and those that you know will only ever act in your children’s best interests but a Letter of Wishes can help to get some of your specifics on paper and give you that extra peace of mind.

Guidance for Trustees

If you have Discretionary Trusts within your Will then it will be up to your Trustees to manage and distribute the Trust assets to the named beneficiaries. A Letter of Wishes can state how you would like the Trustees to act and use their powers, if there is more than one beneficiary to the Trust, the Letter of Wishes could state who you would like to be the main beneficiary. However, it is important to remember that this is only guidance as a Letter of Wishes is not legally binding.

Personal Items

You may well have many small items and personal belongings that you do not want to list out and gift in your Will but may well hold some sentimental value and that you would like to pass to specific beneficiaries. Where there are many items it may be easier for you to state in your Will that you are leaving the distribution of your personal items to you Executors and you would like them to distribute these in accordance with your Letter of Wishes. A clause like this, has the benefit of allowing you to change and update the Letter of Wishes regularly and as necessary, without having to amend your entire Will.

Exclusions

Although the exclusion of a specific individual will be dealt with within your Will, a Letter of Wishes can give an explanation as to your reasons for the exclusion and may well be considered by the Court should that individual make a claim against your Estate in the future.

If you would like more information, to discuss putting Wills & Trusts in place, or writing a Letter of Wishes, call us on 01727 865 121 or email us at info@TotalLegacyCare.co.uk for a free consultation

Leah Waller

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Got a Question or want to book a FREE Consultation?

3rd April 201923rd April 2020

How do you own your property and why does it matter?

How do you own your property and why does it matter?

The way your property (including your home!) is held could have major implications on how you make decisions on the property, who (and IF!) you can leave it to someone of your choosing in your Will and whether, or how much, Inheritance Tax is or will be payable.

If you own the property alone, in your sole name then there is no complications as to how the property is held, however, if you hold the property with another person then it may be held as either:

Joint Tenants; or
Tenants in Common

So, let’s take a look at each of these in turn and their implications…

Joint Tenants

If you hold your property as Joint Tenants then this means that you each own 100% of the property (rather than a share of the property).

This means that you, as well as the other owner/s, have equal rights to the entire property and are each entitled to an equal proportion of the sale proceeds if the property is sold.

The Rights of Survivorship apply to property held in a Joint Tenancy and so upon the death of one owner, the surviving owner/s will automatically be transferred ownership of the property (although they already had 100% previously in any event).

A property held as Joint Tenants CANNOT be left in a Will, due to the Rights of Survivorship.

Tenants in Common

Holding a property as Tenants in Common means that each owner owns a specified share of the property. This can be an equal share but may well be unequal shares, especially where each individual is contributing a different amount to the deposit or purchase price.

An owner of a property held as Tenants in common can leave their share in the property to whoever they choose within their Will. This also means that Property protection Trusts or other Trusts can be put in place if the owner wishes (this is not possible if the property is held as Joint Tenants).

How do you know?

If you are unsure how your property is held, do not worry! This is something that we can find out by taking a look at the property Title Deeds.

Can you change how you hold your property?

Of course! If you would like to hold your property a Tenants in Common as you think that this is likely to be more beneficial in the long run, then the Joint Tenancy can be severed.

If you would like more information, to find out more about how your property is held, to discuss severing a Joint Tenancy or putting Wills & Trusts in place, call us on 01727 865 121 or email us at info@TotalLegacyCare.co.uk for a free consultation

Leah Waller

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Got a Question or want to book a FREE Consultation?

26th March 201928th March 2019

COMPETITION

Competition Time!

So, in case you have been living under a rock over the last couple of days (or maybe you just haven’t caught up on social media just yet!) you will all know about our COMPETITION…

First things first, THE PRIZES:

9-nights in SOUTH AFRICA for 2 people sharing (including a SAFARI)
FOUR Lasting Powers of Attorney for TWO PEOPLE
Official Rubik’s merchandise

Now, how do you win it…

12 Days (1 – 12 April 2019)
10 Questions (announced on Facebook @TotalLegacyCare)
10 Answers

Simple right?

We will be sharing a link on our Facebook page – www.facebook.com/TotalLegacyCare – later this week to get your hands on the answer sheet and more details on the entry details and the all important terms and conditions!

So, head over to our Facebook page, like the page and await the details.

GOOD LUCK!!

Total Legacy Care

20th March 201923rd April 2020

Cryptoassets: Should I include them in my Will and is Inheritance Tax payable?

Cryptoassets: Should I include them in my Will and is Inheritance Tax payable?

With a rise in cryptoassets and their prevalence in modern day society it is important to consider whether these should be included within a Will and perhaps more importantly how they will be valued for tax purposes upon death…

So perhaps a good place to start is actually defining what a cryptoasset is…

Many of us have heard of ‘Bitcoin’ after it becoming popular in the News headlines of late and ‘Bitcoin’ is a type of cryptocurrency, or cryptoasset and represent digital assets that an individual has legal rights over (meaning that they can transfer ownership, store it or trade it).

Cryptoassets are split into three categories:

Exchange Tokens (including cryptocurrency such as Bitcoin);

These can be used as a method of payment but typically there is no person, group or asset underpinning these and so their value is used for exchange or investment.

Utility Tokens;

These are provided by a particular business, or group of businesses, to provide the holder/owner with access to goods or services that they provide.

Security Tokens

These are provided by businesses as a form of share or credit due to the holder by

that business.

HMRC has specifically, and categorically, stated that cryptoassets are not viewed as currency or money, so that means there is no cash value and they are exempt from Inheritance Tax and indeed any other taxes, right? Sorry, WRONG!

The liability for tax will depend on the type of cryptoasset and the use of the asset.

Cryptoassets will attract Capital Gains Tax when they are disposed of (sold, exchanged, used to buy other goods or services or given away/transferred to someone else), much like any other asset that is disposed of by an individual. Other taxes may also apply to cryptoassets depending on how they are used, however, we will only be focussing on Inheritance Tax here.

HMRC make it clear that the onus is on the individual, and no other third party/issuer or otherwise to keep records of their cryptoasset transactions and this should include:

the category of cryptoasset;
the date of the transaction;
if the individual bought or sold the cryptoasset;
the number of cryptoassets;
the value of the transaction in GBP (£) – even where there is no pound sterling value an appropriate exchange rate must be calculated and records should be kept of the valuation method;
the cumulative total of the investment in cryptoassets that is held by the individual;
Bank statements if required for a review or enquiry.

So, what we all came here to find out…are cryptoassets included in the valuation of an Estate for Inheritance Tax purposes?

YES!

Cryptoassets have a value and so although they are not included as money or currency they are included within the valuation of an Estate under ‘PROPERTY’ for the purposes of calculating whether Inheritance Tax is payable.

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

Leah Waller

Click here to find out more...

Got a Question or want to book a FREE Consultation?

14th March 201923rd April 2020

Can the Inheritance Tax process be simplified?

Can the Inheritance tax process be simplified?

The Office of Tax Simplification (YES, there is such a thing!) have published their first report on Inheritance Tax, looking at the views and experiences of over 3,500 participants.

Some key findings of the report show:

Where people were not using an Adviser to assist with the probate process, the executors were spending in excess of 50 hours on administration of the Estate.

Participants stated that ‘obtaining Probate’ and ‘completion of the relevant forms’ were the “most time-consuming” tasks in administering the Estate.

Concerns were raised over submission of Inheritance Tax forms even where no Inheritance Tax is payable.

65% of participants stated that they “still had to provide significant amounts of information” in relation to the Estate regardless of whether Inheritance Tax was payable or not.

In the tax year 2015-2016, Inheritance was payable on only 24,500 Estates, however, 275,000 Inheritance Tax forms were completed and returned to HMRC. Thus showing that even where the Estate may seem small and simple, forms may still cause complications.

The key recommendation from the Office of Tax Simplification, following this report is:

“The government should implement a fully integrated digital system for Inheritance Tax, ideally including the ability to complete and submit a probate application.”

Office of Tax Simplification

This seems an ideal solution, in principle, however this is a large, not to mention expensive and time-consuming, task to achieve. A digital system for the whole process could allow for a speedier and much more simple procedure for the whole process from obtaining probate through to reporting on the Estate and payment of correct Inheritance Tax where applicable.

However, we will wait to see for such action to be taken and for now work with the system as it is.

If you would like to have a free chat about Probate or administration of someone’s Estate, please contact us on info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

Got a Question or want to book a FREE Consultation?

Category: Total Legacy Care