Will my partner inherit my house if I die and we are not married?

We often get asked about ‘Common Law Marriage’ and whether a partner will inherit the house (that they have lived in) should they pass away before them.

In short, the answer is NO, not unless you have a Will to state your intentions and wishes.

Common Law Marriage is a term that doesn’t mean very much at all where intestacy is concerned (when a person dies without a Will).

As you know, we like to simplify things and so…

WITHOUT A WILL

If you die without a Will (intestate) then the first £270,000 of their Estate (or all of their Estate if it is valued at less than £270,000) will pass to their SPOUSE – this means that they must be legally married or have entered into a Civil Partnership. A partner does not receive the same status or eligibility.

Anything above the £270,000 will be split in half; 50% of the half will pass equally between the deceased’s children and the remaining 50% will pass to the SPOUSE.

Where there are no children of the deceased, the SPOUSE will inherit everything.

Where there is NO SPOUSE (legally married or civil partnership); any children of the deceased will inherit first and if there are no children then the following order is followed:

Surviving PARENTS of the deceased;
Surviving SIBLINGS of the deceased;
Surviving HALF-SIBLINGS of the deceased;
Surviving GRANDPARENTS of the deceased;
Surviving AUNTS & UNCLES (or their children should they have predeceased) of the deceased;
THE CROWN

As you can see, without a Will, a partner is entitled to NOTHING!

However, this can all be put in order with a Will. Putting a Will in place means that you get to choose who inherits and where your Estate passes following your death.

That isn’t to say that it may not be beneficial to get married…not just because of the romance (of course!) but there are also some tax advantages for married couples / civil partnerships too!

** The Inheritance (Provision for Family and Dependants) Act 1975 gives a right to anyone who is dependent on the deceased to make a claim against the Estate. This can be lengthy & costly to go through the courts to make a claim and can put a lot of stress and strain on the claimant not to mention causing friction within the family.

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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8th July 20218th July 2021

Where do I keep all of my Information so that it is accessible upon my death?

Where do I keep all of my Information so that it is accessible upon my death?

We all have so many accounts these days, both online and physical accounts. Whether that be bank accounts, gas, electrocity, other utilities, social media and much much more…we are all collecting accounts at an extraordinary rate and keeping track of all those sometimes seems an impossible time for us, let alone for someone else trying to find and collate all that information when we pass.

It is estimated that the average UK consumer is likely to have over 200 online accounts – this is a staggering number and as we are advised to not reuse the same password for all (although, if we are honest how many of us actually take heed of that advice?) that is a lot of information to keep track of.

Another little statistic, from a YouGov survey, that I thought was worth mentioning is…

67% of respondents wanted their social media accounts taken down or removed following their death (with 7% wanting them to remain online). For some accounts, you are able to change your preferences during your lifetime and add someone to take charge of your account following your death but for others, someone will need the login details or just wait for the inactivity to cause the account to be deactivated.

So, this is all very well and good me telling you about this BUT, what can we do about it and where should we be storing this information so that we don’t leave our loved ones with an even bigger headache than is necessary?

Well, that’s where we can help!

We have designed an easy to use ‘Assets & Liabilities’ sheet where you can keep all your information. Either store it on your computer (password protected but make sure you give someone else that password!) or print it, fill it in – and keep it updated – and keep it in a safe place, perhaps with your Will, Lasting Powers of Attorney and other important documents.

This document is only a template and so some sections will be relevant and others not, however you can add and amend as is right for you and ensure that all of your information is kept up to date and all in one place (that is SAFE!).

So what sorts of things do we need to keep track of?

The ‘Assets & Liabilities’ sheet goes through all of the following:

So, first we start with the information about you and everything that your loved ones may need – your National Insurance Number, NHS Number – and other basic information as it is surprising how little information you retain when grieving. Having everything written down and to hand makes everything so much easier.

We have space to keep details of your property, or properties, including mortgage details, utilities and service providers.

We have space to keep details of finances, bank accounts, ISAs, investments, employment benefits, life insurance policies and any other places where money is held.

It is also important to keep details of any pensions, benefits and other income that you receive.

Following that is the social media accounts and email accounts.

We have also left space for you to detail any personal items of value and your wishes for these (should you have any).

As I said at the beginning, not all parts will be relevant to you and some parts may become relevant at a later date, or make you think about something that may well have been forgotten! However, this is a great template to get you started and to begin to get everything in order for you.

Click here to download your free copy of the ‘Assets & Liabilities’ sheet

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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21st January 202121st January 2021

What is a Living Will or an Advance Care Plan (ACP)?

What is a Living Will or an Advance Care Plan (ACP)?

Kindly written by Debbie Callow RMN

An Advance Care Plan, known as an ACP, is an umbrella term that contains a plan made in advance of reaching the end of your life that details key wishes, preferences, and legal aspects of your care needs. It was previously known as a Living Will, some people may still know it as that, but this is a more outdated term. It is important for us all to complete but even more so for a person experiencing dementia as there is a risk of losing mental capacity as the disease progresses.

I’m Dementia Debbie, The Dementia Coach and I’m a registered mental health nurse specialising in supporting families facing dementia with tough transitions through their dementia journey. I believe education is key to helping the world understand dementia, after all knowledge is power, so let me help you understand some basics about what to consider in an ACP.

An ACP can encompass an array of documents such as an Advance Statement, Lasting Power of Attorney (LPA), Do Not Attempt Cardiopulmonary Resuscitation (DNACPR), Advance Directives (different from an advance statement). It can also include information related to after death such as Will information or funeral arrangements. It’s important to know that an ACP helps guide professionals and families in the right direction when a person has lost mental capacity and the team are trying to act in the person’s best interests. If a person still has mental capacity, they may wish to use their ACP to help them make decisions, as it allows you to consider tough decisions ahead of time. Trying to decide when an event is occurring can often mean our judgement is clouded as our emotions are heightened at this time. The ACP helps take away from that decision-making process at those challenging times when it can be difficult to think straight.

Health and Social Care professionals will often use a lot of jargon, sometimes without even realising, and you may not know what that abbreviation or word means. Always ask a professional what they mean if they use a term that you are not sure about. Let me explain now what all those documents I listed entail:

Advance Statement

A personal statement of your wishes when you reach the end of your life, it is mainly focused on pre-death but can include details of where your Will is or who holds it, as well as your funeral wishes. People often want to include things like “I wish to be pain free”, “I wish to have my family around me”, “I wish to always be treated with dignity and respect”, “I wish to be cared for at home”. Consider though the deeper meaning to these statements, for example, what do you mean by “pain free”, do you want to be so dosed up on medications you are free from pain but not really aware of who is in the room, or would rather tolerate some pain so you can be more aware of your surroundings? Everyone will feel differently about this and it’s important to always consider what a statement really means to that individual. Similarly, someone who wishes to remain at home, that can be option A, but what if it was not safe to remain at home, under what circumstances would you consider an option B and C? Put these variations to your preferences in your Advance Statement, it can save a lot of heartache and guilt later on if people already know what you want if you couldn’t stay at home for some reason. You can find a template to complete an ACP on the Dementia UK website. (1)

LPA (Lasting Power of Attorney)

A legal document that enables a person with mental capacity to appoint a person/s to speak on their behalf about important financial and or health matters. If a person has already lost mental capacity, then they cannot get an LPA and may need a representative to apply to the Court of Protection to become a Deputy. There are 2 types of LPA, Financial & Property which can be active before a person loses capacity and Health & Welfare which is only applicable once a person has lost capacity. If an appointed Attorney is active, they should always be advocating for what that person would want and in their best interests. I would always recommend getting legal advice to complete these documents. A solicitor such as, Total Legacy Care, will talk through many scenarios with you to ensure the LPA is strong and lasting. You can find information about all of these matters at the Office of the Public Guardian. (2)

DNACPR (Do Not Attempt Cardiopulmonary Resuscitation)

This is another legal document and the biggest misconception about DNACPR is that it means professionals are giving up on the person, it does not mean that! It only applies in the event of the heart stopping and whether you would then want CPR to try and restart your heart. It does not apply to any other health matter or care need.

It is a medical decision whether to put one in place but should always be done with consultation with the patient (if possible) and family. I think the easiest way to think about whether or not you or someone you love might need a DNACPR is;

Would it feel wrong to you to see someone aggressively pushing up and down on that person’s chest?

If you feel yes it would, speak to the GP about getting one put in place.

CPR is not a gentle process, it often causes bruising, skin tears, sometimes broken bones. CPR is only successful in 10% of cases that happen outside of hospital (3) and is 3 times less likely to be successful on someone with a cognitive impairment. (4)

Advance Directives

Another legally binding document and are about refusing life sustaining treatment. Not many people have them as the wording must be extremely precise and include phrases such as “even if my life is at risk as a result”. An Advance Directive informs of the treatment being refused and the circumstances in which you wish to refuse that treatment.

For example, specific treatment: I wish to refuse artificial feeding through a tube to my stomach or IV, circumstances: I wish to no longer receive food or fluids through a feeding tube when I can no longer swallow safely due to my dementia, even with the support of others, even if my life is at risk as a result.

The reason to put in your health condition is that this same sentence may not apply in different circumstances. A person with dementia may want artificially feeding if the reason they cannot eat is from a stroke which they are expected to recover from.

Advance Directives should always be discussed with your specialist consultant involved and with legal support.

I offer support to complete an Advance Statement and can talk through the other aspects discussed. You can follow me on Instagram @dementiadebbie or visit my website https://thedementiacoach.org/.

Reference resources

Dementia UK ACP template https://www.dementiauk.org/wp-content/uploads/2020/07/DUK_ACP_form_editable_online.pdf
Office of the Public Guardian https://www.gov.uk/government/organisations/office-of-the-public-guardian.
Resus Council UK https://www.resus.org.uk/home/faqs/faqs-basic-life-support-cpr
Arcand M. End-of-life issues in advanced dementia: Part 1: goals of care, decision-making process, and family education. Can Fam Physician. 2015;61(4):330-334. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4396757/

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12th November 202011th November 2020

Lasting Power of Attorney: The Basics

Lasting Power of Attorney:
The Basics

Following on from in our series of ‘The Basics’, this week we look at Lasting Powers of Attorney and some of the questions we are frequently asked, such as:

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What is a Lasting Power of Attorney?

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Why is a Lasting Power of Attorney important?

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What happens if I don’t have a Lasting Power of Attorney in place?

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Can I put a Lasting Power of Attorney in place after being diagnosed with Dementia?

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What’s involved in making a Lasting Power of Attorney?

So, let’s get going…

What is a Lasting Power of Attorney?

A Lasting Power of Attorney is a legal document that you put in place to name someone (or more than one person) that you know and trust as your Attorney or Attorneys. As your Attorney, they will have the ability to make decisions for you if you lose mental capacity in the future or even if you would prefer them to make decisions for you now in relation to your finances.

There are two types of Lasting Power of Attorney, one in relation to Property and Financial Affairs and another in relation to Health & Welfare. You can appoint the same, or different, people to be your Attorneys in relation to the two different types.

Why is a Lasting Power of Attorney important?

Why is a Lasting Power of Attorney important? Or, what happens if I don’t have a Lasting Power of Attorney in place? Both of these questions arrive at a very similar answer…

We are all living longer and statistics show that 1 in 3 of us will develop Dementia. It is vital to release the burden from loved ones to allow them to access your money and pay for care for example. Banks can freeze accounts if capacity is lost, regardless of account signatories and medical professionals make decisions for you without having to consult your loved ones. A Lasting Power of Attorney negates these issues.

A Lasting Power of Attorney, for your property and financial affairs, can be put into place straight away meaning that even if you are out of the country, or temporarily incapacitated, your Attorney can help out and make decisions for you or undertake actions for you where otherwise you would need to be physically present.

Can I put a Lasting Power of Attorney in place after being diagnosed with Dementia?

We are massive advocates for getting your Lasting Powers of Attorney in place at a young age, even if the concept of ever needing them seems in the very distant future BUT…

A Lasting Power of Attorney must be put in place whilst the Donor (the person giving the Power) has capacity and a Certificate Provider (that can be us!) is required to certify this in order for the Power to be registered by the Office of the Public Guardian.

So, once diagnosed with dementia is it too late to make a Lasting Power of Attorney?

Whether you can make a Lasting Power of Attorney after being diagnosed with Dementia will depend on how soon the diagnosis takes place and whether the individual that has been diagnosed has lucid or ‘good’ days and is still of sound mind.

If the individual still has lucid days where they are clear on their finances, current affairs and appear to be unaffected by the Dementia, then it may well be that a Lasting Power of Attorney can be prepared at this time and instructions taken from the individual. A Certificate Provider will meet with the individual and go through, carefully and sensitively, the current circumstances and ask questions as to that individual’s circumstances and personal affairs as well as current affairs in the news and media to ascertain their general capacity and mental wellbeing. If the Certificate Provider is content that the Donor has capacity, then the Lasting Power of Attorney can be applied for.

You can find out more in our article – Is it too late to make a Lasting Power of Attorney once being diagnosed with Dementia?

What is involved in making a Lasting Power of Attorney?

The documents for a Lasting Power of Attorney can be quite daunting BUT, there is no need to worry!

We will meet with you and discuss all of the options and your requirements, and answer all your questions, and then complete all of the documents for you.

We will then return to you, so that all of the documentation can be signed in the correct order and in the correct places (we will also act as witness and certificate provider where appropriate).

We then liaise with your Attorneys to get all of the documentation signed correctly and get everything sent off to the Office of the Public Guardian for registration.

If you have any questions, or would like a FREE consultation, please call us on 01727 865121 or drop us an email Info@TotalLegacyCare.co.uk

Leah Waller

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29th October 202011th November 2020

Wills: The Basics

Wills:
The Basics

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

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What is a Will?

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Why do I need a Will?

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What happens if I don’t have a Will? OR
What happens if I die without a Will?

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I don’t have anything, do I still need a Will?

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Why is a Will important?

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How long does it take to make a Will?

So, let’s get going…

What is a Will?

A Will is a legal document that sets out what should happen to all of your belongings (money, property, cars, possessions etc.) when you pass away.

Your Will can also appoint Guardians for your children (should they be left with neither parent). A Will is the only way (in the UK) of appointing guardians for your children.

Your Will appoints Executors, the people that you trust to be responsible in administering your instructions.

Your Will can also include any funeral wishes that you may have (although this is optional).

Why do I need a Will?

We often get asked ‘Why do I need a Will?’ or ‘What happens if I don’t have a Will?’ or even ‘What happens if I die without a Will?’.

Ultimately it is the same question…with the same answer, just asked in different ways.

So, you need a Will because if you do not have a Will, or (to put it another way) die without a Will, then you will die INTESTATE.

If you die intestate, this means that the Rules of Intestacy apply and you, and your family, lose control of where your money, property and possessions go and this is decided by the Rules of Intestacy.

Having a Will in place allows you the control to decide who benefits and inherits upon your death.

I do not have anything, do I still need a Will?

YES!

Even if you perceive that you have ‘nothing’ this can mean very different things from one person to another.

As we have said above, a Will is the only way to determine that only the people that you decide can benefit and inherit upon your death, rather than it being left to the Rules of Intestacy.

Why is a Will important?

For fear of repeating ourselves (although it is important!), your Will is important as it allows you control and allows you to decide where your estate (all your money, property and assets) go.

It’s not just about your money though, you can also choose guardians for your children, name your executors and even make provision for any pets that you have.

A will can also allow you to create Trusts that may help with reducing your Inheritance Tax liability.

How long does it take to make a Will?

Usually, we just need about an hour of your time to explain everything to you, take down all your requirements, answer all your questions and then we’ll do all the work in the background.

We then return to you with your Will for signing, we provide both independent witnesses, to make it legally binding and then your Will is complete.

From the initial call to you having your signed Will in your hand with all your wishes, legally compliant and complete can take as little as a few days, we like to make it as simple for you as possible for you. Having said that, we never rush you to finalise your Will until you are 100% happy with the Will and that it covers all of your wishes.

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

Leah Waller

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15th October 202015th October 2020

How much does a Will cost?

How much does
a Will cost?

It’s always tricky to work out how much something costs, or is worth, before you get a quote. To guess how much anything will cost we need to look at the value of it first. ‘Value’ is described as “the regard that something is held to deserve; the importance, worth, or usefulness of something”.

If we break those 4 areas down for a Will then we can start to understand the value:

The regard that something is held to deserve

Writing a will is not as simple as putting pen to paper (or finger to keyboard). The process, when followed properly, should include an initial meeting where the Will Writer or Solicitor will take time finding out what the clients needs are, taking down all the relevant information and answering any questions the client may have. There may be a requirement to plan for inheritance tax, or to plan for vulnerable or disabled beneficiaries, and workout the best solution to meet all the clients needs.

Once this has happened the Will can then be drafted and a draft version sent to the client and explained fully to them.

If all is in order the Will can be finalised, printed and signed. The Will Writer or Solicitor will have additional paperwork to complete to be fully compliant and complete their due diligence.

There is a fair amount of work to complete in order to put a valid Will in place and it should take around 4-6 hours for an efficient Will Writer or Solicitor to complete, even with what is considered a ‘simple Will’.

The importance

The next part to discuss is the Importance of a Will, this should be self-explanatory but put simply, without a Will in place you don’t get to decide where your assets end up. Having a simple Will in place removes additional stress that your family and loved ones will have to endure without having a Will in place in dealing with the Rules of Intestacy. A Will not only dictates where your money will go, it also covers a variety of other important decisions, such as, guardians for children (if under the age of 18 years) your funeral wishes, your executors and any Trusts that you may wish to put in place to protect your loved ones.

Worth

If you ask anyone who has had to deal with the Administration of an Estate without a Will then they are sure to explain how much easier it would have been with a Will. It’s also more costly to go through the legal procedure when there is no Will (several times the amount it would cost to put a Will in place). If you put a Will in place you could save your loved ones time, expense and hassle – which must be worth it, right?

Usefulness

Having explained the previous areas, how useful is a Will?

Your Will lists clearly your instructions and what you want. It is the only way (in the UK) to ensure guardians are put in place, for your children, if required, explains your funeral wishes to your executors and directs your executors on how you would like your Estate to be distributed. Your Will can ensure people are protected in the event of your death and Trusts can be included to plan for inheritance tax amongst other important issues such as vulnerable or disabled beneficiaries.

So, how much should a Will cost?

It will vary on what you require and where you get it from. You can pick up a Will Pack from WH Smiths for under £20 and do it yourself. Although a word of warning…completing a Will yourself comes with risks, you’ll need to ensure it is correctly completed and legally valid, you may not realise this until it is too late.

If you go to a professional, you will be expecting to pay anywhere between £200-£500 for a simple Will. If you need Trusts in place or there is additional work then you can expect to pay more. Many companies offer an initial consultation free of charge and all prices should be quoted up front before work commences

We are always happy to have a chat with you about putting a Will in place or answer any questions you may have.

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

Neil Barras-Smith

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1st October 20201st October 2020

What is the role of an Executor?

What is the role of an Executor?

Being appointed as an Executor is a blessing but can also be a burden, but worse of all is when it comes as a surprise!

If you are asked to be an Executor, you may have a few questions:

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What is an Executor?

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What does an Executor do and is there a specific process to follow?

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Does being an Executor cost me anything?

So, let’s have a look at some of those questions…

What is an Executor?

An Executor is appointed by someone in a Will, so that when that person passes away the Executor can collect and protect the estate, property and assets of the deceased and carry out the distribution of such items in accordance with the Will and the deceased’s wishes.

Being an Executor can involve a considerable amount of work, but it is a privilege to be asked. The person that has appointed you as an Executor, has put their ultimate trust in you to carry out their final wishes, to collect in and distribute their estate and possessions as they wanted on the basis that they trust you to do so.

Some of the initial steps to take upon becoming an Executor are:

Ensuring that a Death Certificate is obtained

As the Executor you will be responsible for notifying certain people, companies and authorities of the death and so the Death Certificate will be required. It is possible to obtain more than one copy of this and so it may be wise to do so.

Finding the Will

As the Executor you will need the Will in order to apply for Probate.

Consider whether you need help

As the Executor you do not have to carry out all of the administration of the estate by yourself, you can ask for professional help from solicitors, probate specialists and/or tax advisers.

If the estate is relatively small and doesn’t have any complexities, the Executor may well decide that they can carry out the process by themselves and this is also fine.

Applying for the Grant of Probate

This is the official document giving you authority to administer the estate of the deceased, collect in and deal with their assets and then distribute them accordingly.

Collecting in the Assets

The Will and any accompanying documents that the deceased may have left may well give specific instructions as to what the deceased has and, importantly, where it can be located, however such specifics may not be given.

As the Executor you will need to ensure that you collect in and account for all of the deceased’s assets including property, stocks, shares, bank accounts, ISAs, personal items etc. The Executor will also be responsible for ensuring that relevant insurance is in place for the assets until they can be distributed in accordance with the Will.

Paying the estate debts and any taxes

The estate is responsible for paying the funeral costs and any taxes due in relation to the deceased and the estate. The Executor is not responsible for paying these personally however, the Executor is responsible for ensuring that these are paid from the estate. The Executor should also put a notice to debtors in the London Gazette.

Distribution

The Executor will then be responsible for distributing the estate assets, following the payment of all debts and taxes, in accordance with the deceased wishes as set out in their Will. A detailed record of this, and all the steps taken by the Executor, should be kept throughout the process.

Remember, if you are putting your Will in place, have a chat with your proposed Executors and let them know that you trust them implicitly and so that is why you would love them to be an Executor. Having the conversation may well be difficult but it will save what can be a shocking, surprise should anything happen to you and they are required to act.

An Executor has the right to refuse to act, if they are unwilling to do so at the time they are needed, and so discussions at the time that a Will is put in place are important to overcome this.

An Executor may be unable to act, through incapacity or if their death occurs before yours, however having conversations with your proposed Executors, when putting your Will in place, should prevent any surprises and limit the risk of them renouncing their obligations when the time comes.

We are always happy to have a chat with you about who you may want to appoint as your Executors and even help with the discussion with Executors and answer any questions that they may have.

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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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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20th August 202019th August 2020

Equity Release

Equity Release

Most people’s main asset is their house but many may be facing later life when they are asset rich but cash poor…meaning that although they have money in their property, or properties, they are unable to access this on a daily basis, or as and when they need it, to pay for necessities and therefore are ‘cash poor’.

Equity release has been given a bad press in recent years and so below we look at some of the positives and negatives of releasing equity from your property.

So, what are the advantages to equity release schemes?

The monies released from the property are tax free.

You can gain access to money that is tied up in your property without having to move or downsize.

You can use the money released to make gifts to loved ones.

Most companies will guarantee you against any fall in property price if the value of your property falls below what is owed.

This means that if the property market crashes and the amount borrowed is more than the value of the house, the lender will meet the shortfall, putting you at no risk.

Most schemes do not require a monthly repayment.

With most schemes the interest rates are fixed for the entirety of the scheme meaning that you will know exactly what will be owed when the scheme comes to an end.

Some schemes offer a ‘draw down’ option where monies are accessible but interest is not charged on this unless it is drawn down and used. This means that you can have peace of mind by knowing that funds are available should you need them but if they are not used then there is no interest charged.

What about the disadvantages…

As interest is added to the final debt, rather than charged monthly (compound interest) it means that the balance can rise dramatically. Although, as seen above, the final amount due will be known from the outset.

If you want to repay the debt early there may be hefty penalties for early repayment. This will depend on the plan and so it is important to consider this at the outset.

An injection of cash into your account could have an impact on any state benefits that you receive such as means-tested benefits, Council Tax, Pension Credits and/or NHS optical and dental appointments.

You will be unable to secure any other loans or charges against your property once commencing an equity release scheme.

It is therefore extremely important to speak with an independent professional before embarking on any equity release scheme. You can then look at the types of equity release schemes appropriate for you and your needs and weigh up the advantages and disadvantages and whether it is the best option for you.

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

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6th August 20206th August 2020

Second Marriages: Protecting your Children & Inheritance

Second Marriages: Protecting your Children & their Inheritance

Nowadays, second marriages are quite common. We look at a case study of Bob and how second marriages cause issues not only during our lifetime but also upon our death, including Inheritance provisions, large estates attracting taxes and whilst all this is going on…trying to keep everyone happy and doing what seems fair!

So, let’s look at a case study of Bob to put things into perspective…

Married in his early 20’s;
Bob has 3 children who are now all grown up and have their own children;
Unfortunately, Bob’s wife passed away some years ago and after spending some time alone, Bob met a new partner Sally.

Sally is also a widower and has two children of her own, a son and a daughter. Sally’s daughter has two children also but her son never married and lives the life of a ‘Rock and Roll Star’.

Both Bob and Sally own their own homes but want to sell up and move to the coast together to enjoy their retirements.

Their current assets look like this:

House

Mortgage

Buy to Let

Mortgage

Savings

Shares & investments

Total (less mortgages)

Bob

£500,000

£100,000

£0

N/A

£75,000

£25,000

£500,000

Sally

£600,000

£0

£250,000

£40,000

£20,000

£60,000

£890,000

Now, Bob and Sally have agreed that the life and wealth they each built before they met will be passed on to their own children.

They have put an offer on a luxury bungalow on the south coast which has been accepted at £800,000.

There may be a few complications that they need to resolve and plan for carefully, so they can purchase their dream home and make sure that each of their children’s inheritance is protected.

How will they own the home?

Joint Tenants: This means you both own the home jointly, when one of you dies the survivor automatically owns the house outright.

This is not a good option for Bob & Sally as they want to pass their own share on to their children.

Tenants in Common: This allows the owners to hold the property in shares (equally or in different shares), for example 50% each or, you could own it in any percentages you wish 60/40, 70/30 etc.

For Bob and Sally, owning the home as Tenants in Common would be the best option. If they both put in equal amounts of £400,000 to pay for the property, their share is protected and they can gift their share of the house in their Will to their children, or to anyone else that they wish.

What happens if Bob dies first?

If Bob passes first, Bob’s children would receive his share in his Will. They could force Sally to sell up to get their money or she would have to find £400,000 (or half the current market value if the property went up in price since purchasing) to buy Bob’s children out. This is not a situation that either Bob or Sally would like to find themselves in. So what’s the solution…

A simple Trust in their Will

Bob has a Will drafted stating that all of his assets are to pass to his children BUT puts a Trust in his Will stating that he would like Sally to live in the house until she sells up or passes away. If she sells the house Bob’s children will receive their share, or upon her death, the house can be sold and Bob’s share will pass to his children.

Creating a Will with a Trust in this way, allows Sally to live in the property for as long as she wants without the worry of finding money or being pressured by Bob’s children. You can also put in other stipulations of the Trust too, for example stating that the Trust would end should Sally (in this case) remarry.

It would of course make sense for Sally to write a Will and Trust similar to Bob’s so he is protected should she pass away first.

Other considerations…

In addition to sorting out their Wills and Trusts, there are a couple of other things we would recommend considering before Bob and Sally venture off on a new life down by the sea to protect themselves and each other.

Lasting Powers of Attorney (LPA)

If Sally was to lose capacity and need to go into a Care Home, she may want to be closer to her family, children and grandchildren, Bob would not be able to sell the house to release funds to pay for her care – without going through the courts which is a lengthy and costly process.

Both Sally & Bob would need to sign the legal documents for the sale to go through if the house was held as Tenants in Common BUT with an LPA in place, Sally’s Attorney would be able to sign on her behalf.

LPAs also have a number of other benefits around financial and health affairs that may arise for Sally. Take a look at our article explaining our Top 5 reasons for getting an LPA in place for more information

Funeral Plans

It would also be advisable for both Bob and Sally to consider putting a funeral plan in place. A funeral plan is prepaid and secures the cost of the funeral director services at the time the plan is taken out. This means that, rather than either the surviving spouse, or Bob & Sally’s children having to face the financial and emotional burden of paying for and arranging the funeral…this will all be done for them with one simple phone call.

Inheritance Tax

Another consideration is Inheritance Tax. It is always best to speak to an expert to make sure you have taken any possible measures to reduce your inheritance tax liability to protect yourself and your family where possible.

MOST IMPORTANTLY…Don’t panic, there are always options around this and if this concerns you, get in touch we are always happy to give free advice, answer any questions and help to resolve your concerns.

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

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WITHOUT A WILL

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Kindly written by Debbie Callow RMN

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The regard that something is held to deserve

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Worth

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So, what is the role of the Trustee?

Equity Release

So, what are the advantages to equity release schemes?

What about the disadvantages…

Second Marriages: Protecting your Children & their Inheritance

Bob

Sally

How will they own the home?

What happens if Bob dies first?

A simple Trust in their Will

Other considerations…

Lasting Powers of Attorney (LPA)

Funeral Plans

Inheritance Tax

Lasting Power of Attorney:
The Basics

Wills:
The Basics

How much does
a Will cost?