Tag: Care Home Fees

Posted on

LPA Certificate Provider

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Jayde_Logo

LPAs

Total_Legacy_Care_Coral_Logo

WILLS

Total_Legacy_Care_Dark_Grey_Logo

PROBATE

LPAs: Who can be my Certificate Provider and what is their role?

Getting a Lasting Power of Attorney (LPA) in place for your Health & Welfare and your Property & Financial affairs is SO important and can be a relatively stress-free and quick process but you will need a Certificate Provider…

So, what is a Certificate Provider, what do they do and why are they needed?

Certificate_Provider

Well, in order to register your LPA you will need a Certificate Provider to sign the LPA application to certify that you have the capacity to make the application and that you understand the extent of the power that you are giving to your appointed Attorney, or Attorneys.

In order to do this, the Certificate must have knowledge of the TWO-STAGE TEST FOR MENTAL CAPACITY and make a judgement as to whether you (the person applying for the LPA) can understand the information that is relevant to making the decisions within the LPA, whether they are able to retain that information and weigh up the information in order to make a decision and communicate that decision.The Certificate Provider must also be aware of the FIVE PRINCIPLES OF CAPACITY:

You are assumed to have capacity UNLESS it can be established that you do not.

You are to be treated as though you can make decisions UNLESS all practicable steps have been taken to help you make a decision and all have been unsuccessful.

Just because you make an unwise decision it does NOT mean that you lack capacity.

Any decision taken MUST be done or made in your BEST INTERESTS.

PRIOR TO ANY DECISION, consideration must be given to whether it is effectively achieves the purpose in the least restrictive way to your rights and freedoms.

So, who can be a Certificate Provider?

A Certificate Provider must be either:

Professional_Certificate_Provider

A PROFESSIONAL CERTIFICATE PROVIDER can be someone over the age of 18 that has the necessary knowledge and experience, because of the skill and profession, to make a judgment as to your capacity.

Frequently used Professional Certificate Providers include, US here at TLC, Solicitors, Estate Planners, Legal Professionals, GPs, Medical Professionals and Social Workers.

Personal_Certificate_Provider

A PERSONAL CERTIFICATE PROVIDER can be someone that is over the age of 18 and has known you for at least two years prior to the date on which you apply to register your LPA.

This person will need to be someone that can have a full and frank discussion with you about your capacity and your understanding of the LPA and the consequences of registering such a document.

Who CANNOT be your Certificate Provider?

Your Certificate Provider cannot be under the age of 18.

Your Certificate Provider cannot be one of the people that you have appointed as your Attorney in the LPA you are applying for.

Your Certificate Provider cannot be one of the people that you have appointed as a replacement Attorney in the LPA you are applying for.

Your Certificate Provider cannot be one of your family members (this includes your boyfriend/girlfriend, partner,  in-laws and step-relatives).

Your Certificate Provider cannot be a family member of the appointed Attorneys (this includes their boyfriend/girlfriend, partner, in-laws and step-relatives).

Your Certificate Provider cannot be your Business Partner.

Your Certificate Provider cannot be your appointed Attorneys’ Business Partner.

Your Certificate Provider cannot be your employee.

Your Certificate Provider cannot be an employee of your appointed Attorneys.

Your Certificate Provider cannot be someone that works for a Trust Corporation that is appointed as your Attorney.

Your Certificate Provider cannot work for the Care Home where you live (if you reside in a Care Home), or a family member of someone working for the Care Home. This includes the owner, manager, directors, staff and employees.

What next?

Once the above has been satisfied, the Certificate provider will sign and date the LPA application and confirm that you understand the LPA, its purpose and consequences, that you are under no undue pressure or influence to sign the LPA, that no act of fraud is being committed and that there is nothing that would prevent that LPA from being registered by the Office of the Public Guardian.

 

If you have any questions please do not hesitate to get in touch for a FREE consultation.

If you would like a FREE chat to discuss your options, get in touch on info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

Click here to find out more...

Lasting_Powers_Of_Attorney_Logo

Have a Question or
want to book a 
FREE Consultation? 

Posted on

Bank of Mum & Dad

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Jayde_Logo

LPAs

Total_Legacy_Care_Coral_Logo

WILLS

Total_Legacy_Care_Dark_Grey_Logo

PROBATE

Bank of Mum & Dad:
The implications of helping the younger generation getting on the property ladder

Helping the younger generation to get an all important foot on the property ladder may be the only option for many parents but what should we, as parents, consider before shelling out the deposit?

LPA_Gift

Perhaps the simplest way to help the younger generation in getting a foot on the property ladder, is by giving them a decent sized deposit as a GIFT. There are no tax implications on this gift of money, as parents can pass money (as much as they like!) to their children without incurring any tax liability.

However, if you (the parent) pass away within seven years of making the gift then it may be subject to Inheritance Tax. Where your Estate is worth more than £325,000 (the current Inheritance Tax Threshold) Inheritance will be payable on everything over this amount, including any gifts given within the seven years prior to your death.

Where money is gifted and the property is being bought by your child with a partner, it may be worth considering what would happen should the relationship between your child and their partner take a downturn and the property ultimately be sold.

LPA_Loans

Possibly a better option for parents not in a position to give an outright gift, is to LOAN your children the money for a deposit.

However, some mortgage companies may not be prepared to enter into arrangements where money has been loaned and so this could limit the mortgage options. Where a mortgage company is happy to accept the arrangement, they may want to know the exact repayment arrangements in order that these can be taken into account when calculating the mortgage and affordability and therefore meaning that a lower amount can be borrowed.Where you have loaned the money and receive repayments, you may be liable to Income Tax on any interest that you charge on the loan amount (if any interest is charged).

If you are going to loan the money, then it would be worthwhile drawing up a formal loan agreement to include all of the agreed terms in relation to repayment, any interest and the expectations of each party.

LPA_Buy

Another option would be for you to BUY THE PROPERTY with your child. You could purchase the property as TENANTS IN COMMON to reflect the amount of the property that is owned by each individual (perhaps dependant on the amount that you are putting into the property and how the mortgage will be paid).

However, if this means that you would own more than one property then it will count as a second home and you would therefore be liable to an additional 3% on Stamp Duty and may also have Capital Gains Tax implications when the property is sold if you are still listed on the property as an owner/proprietor at Land Registry or on the mortgage.

If this option is taken, it would be advisable to draw up a Declaration of Trust to include the proportions owned by each person and what happens if one party wants to sell.

 

So, although helping your children take that all important step to get on to the property ladder may seem like a great idea, it is extremely important to think about the best way of doing this…for yourself and for your children!

 

If you would like a FREE chat to discuss your options, get in touch on info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

Have a Question or
want to book a 
FREE Consultation? 

Posted on

Will your inheritance be lost to Care Fees or can it be avoided?

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Jayde_Logo

LPAs

Total_Legacy_Care_Coral_Logo

WILLS

Total_Legacy_Care_Dark_Grey_Logo

PROBATE

Will your inheritance be lost to Care Fees or can it be avoided?

Most of us work hard for the majority of our lives and when our time comes, we hope to leave an inheritance for our children or our families.

But…what about Care Home fees? What if we have no other option but to go into a Care Home, it may not be necessary for all of us, but a large proportion of us will have to because of our care requirements.

So, who pays for the care?

Care_Requests

In the UK, those over the age of 65s make in excess of 1.3million requests each year for care and support.

A recent report (following a Freedom of Information Act Request) found that, across 205 Local Authorities:

  • 31% of over 65’s in Care received fully funded care; and
  • 53% of over 65’s in Care received partially funded care.

When broken down into regions, the report found:

 

Region

Percent of Over 65s receiving fully funded care

East

68%

East Midlands

17%

London

39%

North East

11%

North West

23%

Scotland

22%

South East

28%

South West

45%

Wales

16%

West Midlands

19%

Yorkshire

33%

You will see there is great disparity in the number of individuals that receive funding across the regions. So, is it a postcode lottery?

With Local Authorities only providing fully funded care in 31% of cases across Great Britain, what does that mean for the rest?

The eligibility criteria, for care funding, in Great Britain differ for England & Northern Ireland to Scotland and Wales. Here we will concentrate on England & Northern Ireland (if you require information for Scotland or Wales, please do get in touch).

To assess an individual’s eligibility for care funding the Local Authority will carry out a means-tested assessment and consider the income and capital of the individual applying for the funding.

The means-tested assessment will differ depending on whether the care required is to take place in the individual’s own home or whether the individual needs to move into a Care Home.

Where the individual is able to stay in their own home, with care and support, then the value of the individual’s property will not be included within the capital valuation.

Where the individual needs to move in to a Care Home, the value of the individual’s property will be included within the valuation. Where this property is still required for a surviving spouse to live in then this may be excluded from the valuation.

Now, for the finances:

  • You will have to fully fund YOUR OWN care fees if…
    • your capital means are assessed above £23,250; or
    • if your capital is under £23,250 but you have a weekly income that is high enough to cover the cost of your care
  • You will have to partially fund YOUR OWN care fees if…
    • your capital means are assessed between £14,250 and £23,250; or

You will pay £1 towards your care for every £250 of savings that you have  between £14,250 and £23,250

  • You MAY receive funding for care fees if…
    • Your capital means are assessed at less that £14,250

BUT…you may have to contribute from your income. However, you must be left with at least £24.90 per week (Personal Expenses Allowance for 2019/20) although the Local Authority may consider increasing this allowance if there are specific property-related expenses that the individual is responsible for or if the individual is also supporting a spouse.

Your property value may be ignored for a period of 12-weeks, when you first move into care, for the purpose of the means-tested assessment but following this period, it will be taken into account (as per the above).

So, does this mean that your property will need to be sold, in order to pay for care costs?

Not always, BUT…

Where you do have to fund your own care costs, the Local Authority may agree to a Deferred Payment Agreement (rather than sale of the property straight away) and this will mean that the care costs will be paid to the Local Authority when the house is sold or when the individual dies, meaning that the property can remain in the family, but will have a charge over it in favour of the Local Authority.

So, where does that leave you?

The same report considered above, found that just 21% of those over the age of 55 had made any provision for their future care costs and 44% said that they would use their savings and investments, with 40% thinking that their pension would be enough to cover the costs.

If you would like to consider your options and what can be done to give you peace of mind and avoid the loss of your Estate, and ultimately your family’s inheritance, get in touch!

In this article we have not considered NHS Continuing Healthcare Funding and if you require more information on this then please do get in touch with Leah Waller who has extensive experience in applications and appeals in relation to NHS Continuing Healthcare Funding. Keep your eyes peeled for future articles in relation to this.

 

If you are concerned about yourself or a loved one moving into care, or want to get some plans in place, get in touch for a FREE chat on info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

Have a Question or
want to book a 
FREE Consultation? 

Posted on

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

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Jayde_Logo

LPAs

Total_Legacy_Care_Coral_Logo

WILLS

Total_Legacy_Care_Dark_Grey_Logo

PROBATE

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.

Total_Legacy_Care_How_Do_You_Own_Your_Property

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

Click here to find out more...

Wills_And_Trusts_Logo

Got a Question or want to book a FREE Consultation?

Posted on

Valentine’s Day… What better gift to give your loved ones than peace of mind

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Jayde_Logo

LPAs

Total_Legacy_Care_Coral_Logo

WILLS

Total_Legacy_Care_Dark_Grey_Logo

PROBATE

Valentine's Day…

What better gift to give your loved ones than peace of mind

We are taking a little break from our weekly planning articles and checklists that are helping you to get all those important ‘grown-up’ jobs off of your to do list 😉 

This week we are talking about…Valentine’s Day.

So, hands up how many of us have forgotten to get our loved one a gift, or are at that stage where Valentine’s Day is just another day and gifts are a long distant memory?

Well, what about giving our loved one’s the gift of peace of mind?

What do we mean by peace of mind?

We set out below a couple of things that we know will help give you peace of mind as well as relieving the financial and emotional burden from your loved ones when the time comes:

  • Lasting Power of Attorney

Putting a Lasting Power of Attorney in place allows you to give the person you trust most the power and authority to make decision for you, in relation to you health & welfare and property & financial affairs, if you are unable to do so.

Giving your loved ones, as well as yourself, peace of mind that should anything happen and you are unable to make decisions (whether that be due to temporary or permanent loss of capacity or simply because you cannot be physically present where you are needed) that there is someone in place to take those decisions for you and make the decisions you would have, if you were able.

  • Will

Having a Will in place (and reviewing that Will!) will give you and your loved ones

peace of mind that when the worst happens all your wishes are written down and can be carried out as you intended.

  • Funeral Plan

Having a Funeral Plan in place means that you can not only take away the

financial burden from your loved ones by paying for your funeral in advance (whether in a lump sum or by instalments), you also remove the emotional burden as all your wishes will be written down and can be put into effect by the Funeral Director with minimal input from your loved ones at an already difficult time.

We have these in place as we understand just how important it is to be protected and we are more than happy to have a free chat with you too, no obligation – honestly!

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

Leah Waller

Happy Valentine's Day!

Posted on

PLANNING…Wills Checklist

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Jayde_Logo

LPAs

Total_Legacy_Care_Coral_Logo

WILLS

Total_Legacy_Care_Dark_Grey_Logo

PROBATE

PLANNING...
Wills Checklist

This week we are focusing on ensuring that firstly, you have a Will but secondly, and most importantly, that your Will does exactly what you want it to…and is valid!

 

Remember, a Will is a working document and we always recommend reviewing your Will every three to five years (as a minimum) and when a life event occurs to ensure that it still does what YOU want it to.

 

We have set out below a little checklist of considerations and points so that you can review your own Will and ensure that it is up to date and your wishes will be carried out when needed.

 

 

  1. Executors

 

    1. Have you appointed someone that you TRUST implicitly as your Executor (or has the person who drafted your Will been inserted)?

 

    1. Does your Will mention replacement Executors to cover circumstances in which your first choice Executor is unable or unwilling to act?

 

  1. CHILDREN – such an important consideration for any parents!

 

    1. Who would you like to look after your children should both you and your spouse pass before they reach 18?

 

    1. Have you thought about replacement Guardians to cover circumstances in which your first choice Guardians are unable or unwilling to act?

 

  1. Trusts

 

    1. What age would you like your children to reach before having unconditional access to their inheritance (usually 18, 21 or 25)?

 

    1. Who have you appointed as Trustees (Managers, if you like) of your finances should your children inherit before reaching 18 (or the age you have prescribed in the Will)?

 

    1. Has a professional individual / body / organisation been appointed as Trustee and you would prefer to appoint a loved one?

 

    1. Do you need to consider including a Vulnerable Beneficiary Trust and are you aware of the special tax treatment?

 

    1. Do you want to pass your property to your children but ensure your spouse has somewhere to live for the remainder of their life?

 

 

  1. Specific Gifts

 

    1. Are there any specific gifts that you wish to leave to anyone?

 

  • Wedding ring

  • Watch

  • Jewellery

  • Money etc.

 

  1. Animals

 

    1. Do you have any animals that you need to make provisions for in your Will?

 

  1. Exclusions

 

    1. Is there anyone that you have specifically excluded from your Will (an ex-spouse, perhaps) that we should clarify an exclusion for?

 

  1. Funeral Wishes and Organ Donation

 

    1. Have you included your Funeral wishes in your Will or have you put a Funeral Plan in place?

 

    1. Have you included your wishes as to organ donation?

 

  1. The Legalities

 

    1. Witnessing

Has your Will been witnessed by two individuals that saw you sign the Will?

 

Are the witnesses, or their spouse, mentioned in the Will as a Beneficiary?

 

    1. Marriage

Marriage can make your Will invalid, unless the intended marriage is stated within your Will. So, if you have got married since writing your Will that Will will no longer be valid.

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

Click here to find out more...

Wills_And_Trusts_Logo

Got a Question or want to book a FREE Consultation?

Posted on

New year, new resolutions, new you? Let’s getting planning…

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Jayde_Logo

LPAs

Total_Legacy_Care_Coral_Logo

WILLS

Total_Legacy_Care_Dark_Grey_Logo

PROBATE

New year, new resolutions, new you?
Let’s getting planning...

 

So, it’s the start of the New Year and we’ve said goodbye to another that’s passed. Last year may have been good, it may have been troubled and you may not have got round to ticking everything off that to-do list or kept last year’s resolutions…

 

Each week, we will be writing an article around the “grown up stuff” that should be planned for with useful information and free advice as always to help you to plan for your family’s future and keep on track (don’t worry we will keep them short, to the point and add a little element of fun where we can!).

 

We will be looking at:

 

  1. Funeral planning

    1. How to save your loved ones the emotional burden; and

    2. How to save loved ones the financial burden

 

  1. Wills & Trusts

    1. Planning for Inheritance Tax;

    2. Ensuring your money goes where you want it to;

    3. Guardians for your children;and

    4. Protecting your property against unwanted costs and taxes.

 

  1. Lasting Power of Attorney

    1. What is it and why is it important? and

    2. Who to choose as your Attorneys

 

  1. Probate

    1. What is the process and why is it important?

    2. How to get the help you need at such a difficult time;

    3. Why IHT forms are so important to complete correctly; and

    4. What are you liable for as an Executor?

 

  1. Pensions and investments

    1. Do you know how your pensions are performing?

    2. Are your investments working in the way you want them to or could they be placed elsewhere?

 

In all of our articles we aim to give you the information that you need in a simple and easy to understand format, to help you to make the decisions that you want to.

 

It seems that there is never enough hours in the day but let’s start the year on a positive and MAKE TIME to plan and get some of these things in place and off of your to-do list.

 

Check out our website for lots of free information or contact us for a free meeting.

Neil Barras-Smith

Got a Question or want to book a FREE Consultation?

Posted on

Nursery Rhymes and Death…What is the connection?

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Jayde_Logo

LPAs

Total_Legacy_Care_Coral_Logo

WILLS

Total_Legacy_Care_Dark_Grey_Logo

PROBATE

Nursery Rhymes and Death... What is the connection?

So, why do we use nursery rhymes to talk about Death?!

It may seem like an unusual way to get our point across, but talking about death is always an uncomfortable conversation and so doing this through Nursery Rhymes has been a great way of getting people talking and encouraging them to plan for their families’ future!!

Nobody likes to think about death, as is evident by almost half the country not having a Will in place.  Without the right planning in place, things can go terribly wrong and you have no control over where your hard-earned money ends up! Unnecessary pressures and burdens can drive families apart and this is something that nobody would really want.

So what do we want…here are some of the main reasons why we want you to plan properly for your family’s future:

  • your money goes where we want it to;
  • children are looked after and guardians (that you choose) are put in place if needed;
  • to make it as simple as possible during a time of grief for your family to deal with your estate and assets;
  • can reduce Tax complications ensuring that as much of your hard-earned money goes where, and to who, you want it to;
  • to give you piece of mind, knowing that your family is planned for, should the worst happen.
  • if you Google Wills, Lasting Power of Attorney (LPAs), Funeral Plans or Probate, you’ll get a raft of very sombre looking pages, using stock photos of sad-looking elderly people or a dull video explaining why each is important. It’s depressing watching and reading through them and so no wonder the majority of people put it off, don’t act and fail to get the right measures in place.

We are very different here at TLC!!

We want people to feel relaxed talking about these subjects, understand the implications but know there are solutions and we always aim to put people at ease and answer any questions that they may have.  Talking about the ‘Elephant in the room’ is so important to plan for your family’s future, that’s why we take a different spin on things!

We love making videos to explain our world (and get our personalities across!). YouTube is the second largest search engine and therefore more people are looking to video for information – we don’t want to miss this opportunity.

Most people don’t like thinking about, let alone answering, the question “Who will look after my children if I die before they turn 18?” That is where we decided to use Nursery Rhymes to explain the  scenario in a way that, we hope, people can relate to.

So, what videos have we produced so far?

Jack & Jill

Possibly the most popular of all Nursery Rhymes.

In this short video, we explain:

  • what happens to your estate if there is no Will in place;
  • what happens to your estate, if you have a partner but are not married;
  • how a Will is used to carry out your wishes;
  • what happens if you remarry after the death of your former-spouse;
  • how a Will is void on marriage; and
  • how your children could receive nothing if not properly planned for.

 

Humpty Dumpty

Another classic Nursery Rhyme…with a twist.

We look at the loss of capacity and how a Lasting Power of Attorney (LPA) can really help. We look at some of the burdens and complications faced when there is no LPA is place and when there is no one that can act for you when you are unable to act for yourself due to a lack of capacity.

We explain:

  • how banks can freeze bank accounts if an account holder loses capacity;
  • how partners/family members have to find ways to pay bills, liabilities and maybe even healthcare on behalf of their loved one with no access to their accounts;
  • the different types of Lasting Power of Attorney;
  • the complications on deciding on healthcare; and
  • the authority to sell a loved one’s home.

Little old Women who lived in a shoe

This is the most delicate of subjects, talking about who we would want to be the Guardians of our children should we not be around.

In this video we explain:

  • what could happen to the children if your proposed guardians are not stated in a Will; and
  • how a simple Will could make life so much easier for your children and those you have left behind.

Although the videos are light hearted, this is done in a delicate way to ensure that we never sway away from how important our work is and, although we may make the videos fun, we are professional and knowledgeable within our field.

Neil Barras-Smith

Got a Question or want to book a FREE Consultation?

Posted on

When should I make a Will?

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Jayde_Logo

LPAs

Total_Legacy_Care_Coral_Logo

WILLS

Total_Legacy_Care_Dark_Grey_Logo

PROBATE

When should I make a Will?

We often hear:

  • I’m too young to think about a Will
  • I don’t have time to make a Will
  • I don’t have anything to leave in my Will
  • My family know what I want to happen to my things when I die
  • I haven’t got around to sorting my Will yet but I know I should…

So, when should you put a Will in place?

Honestly, there is no right answer, no one size fits all! Everyone’s circumstances are different and so timing will be different for everyone.

Everyone’s lives take different paths and at different ages.

Below we have set out some of the milestones that making and reviewing your Will should be considered:

Buying your first property

When most people buy a property it is usually their most valuable asset, so when buying your first property it is important to consider (among all the other considerations when taking the plunge and buying your first property!) who your property, along with all your other possessions, should be left to.

Getting married

When you get married any previous Will that you may have is revoked and so is completely invalid. Once you are married, priorities change and so may your wishes in relation to your possessions so shortly after a marriage, or in contemplation of marriage, your Will should be reviewed.

If a Will is created in contemplation of a specified marriage then the said marriage will not revoke the Will, however any other marriage will revoke an existing Will.

Having a baby

Whether you have your own children, are fostering or adopting, having a child, or children, changes your life and means you are responsible for more than just yourself.

A growing family comes with so many considerations, worries and changes, not least the major question as to who you would want as the guardians of your children should you no longer be around. If guardians are not stated in a Will there is a possibility that the local authority may become involved and place the children in care whilst they decide who is best to look after your children… a worrying thought!!

Buying a new or bigger property

As we said, your property is usually your most valuable asset and so when buying any new property and with a change in financial circumstances, your Will should be a key consideration to ensure it still covers you and what you want to happen to your property and possessions.

Investing in buy-to-let properties or second homes

When investing in more property you should also consider your Will and taking advice in relation to the financial implications on the properties that you own, not only during your lifetime but also in relation to Inheritance Tax and what can be done to try and reduce this.

Investing in assets abroad

When you invest in assets abroad they may not be covered by your Will that has been made in the UK. When buying property or any other assets that will be kept in another country you should consider whether legal documentation is required in that country to cover your assets and your inheritance wishes.

Getting divorced

So, you’ve got divorced, do you still want your property and possessions to go to your former-spouse?

Although a marriage revokes a Will, a divorce doesn’t! It is worth reviewing your Will at the end of a marriage to ensure that what you want to happen is set out in your Will…it’s unlikely that you still want your former-spouse to inherit all of your worldly assets.

Getting re-married

As we have set out above, when you get married, whether for the first time or a subsequent marriage, any existing Will that you have in place is revoked.

You may also want to consider putting exclusions within your Will to state that any former-spouse should not benefit under your Will. You may also want to protect inheritance for children you may have had from preious relationships.

Owning a business

When you take the leap to start your own business, your financial situation will change again and you are potentially bringing more assets into your estate. Depending on the business setup you may need to take this into account within your Will. There are also tax reliefs you can utilise for businesses if planned properly.

Death of a Grandparent / Receipt of Inheritance

When you are a beneficiary under a loved one’s estate you are bringing more assets, and therefore more value, into your own estate. This is an important time to take account of the value of your estate and whether you should be taking steps to try and limit or reduce the amount of inheritance tax that may well be payable on your own estate.

Grandchildren

When you have grandchildren, as when you have children, your family is growing again and this is another generation that you may well wish to make specific provisions for within your Will.

Retirement

This is another milestone where your financial circumstances change. You may well be taking steps to consider your finances and assets and so this is the perfect opportunity to review your Will and provisions that you have set out.

Death of a Parent

This is a situation that none of us want to think about.

However, with more assets coming into your estate, the possibility of additional properties and valuables becoming your own, it is worth considering the tax implications and ensuring that your Will properly provides for your own loved ones in the way you want to.

There is never a right time to put a Will in place but as you can see there are many milestones throughout your lifetime in which your Will and future wishes should be considered and reviewed to ensure that your present Will does what you want it to.

To put a Will in place, is more simple than you think. It’s not an arduous task and we make it as simple as we possibly can.

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...

Wills_And_Trusts_Logo

Got a Question or want to book a FREE Consultation?

Posted on

Care ISAs: Are they worth the investment?

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Yellow_Logo

HOME

Total_Legacy_Care_Jayde_Logo

LPAs

Total_Legacy_Care_Coral_Logo

WILLS

Total_Legacy_Care_Dark_Grey_Logo

PROBATE

Care ISAs: Are they worth the investment?

With the proposal of Care ISAs being introduced we look at what they are and whether you should consider getting one in place.

The Government will give much more detailed information as to the Care ISA in the Autumn when their social care proposals are outlined but for now we know that the Care ISA is one proposal in the Government’s plans to get individuals thinking about, and saving for, the costs of their future care at a much earlier stage.

One of the benefits proposed with the new Care ISA is an exemption from Inheritance Tax for any funds left in the ISA at the time of death. However, with the ever increasing cost of care, this is likely to benefit only the very wealthy, who can afford to put large sums into the Care ISA to ensure that it is not all used up by care costs during their lifetime allowing a lump sum to be paid to their beneficiaries free from any Inheritance Tax.

It is also worth considering whether the Care ISA is different or any more advantageous to other pensions, investments or Trusts, that are already available and do not attract Inheritance Tax.

The Care ISA, although seemingly a great idea to provide savings for care in later life, may just be seen as yet another expense that is a luxury rather than a necessity for most. When reaching the age where going into care is a necessary consideration, it is likely to be too late to begin a Care ISA and those with time on their side, to consider saving for care in their future, are likely to consider savings for or paying off education, getting on to the property ladder and starting a family a more important and necessary expense, followed by private pensions and then possibly a Care ISA much further down their list of priorities.

Latest figures show that just one in twenty estates attract Inheritance Tax and so it is unlikely that the Care ISA will be of great benefit to the large majority when considering tax planning and planning for theirs and their families’ future and much less likely to achieve the Government’s aim of enticing us all to save more for the costs of future care.

With more information due in Autumn on the Care ISAs, we will consider the benefit of Care ISAs again later in the year.

If you would like to have a free chat about your Inheritance Tax liability and planning for the future, please contact us on  info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller