oak-shields

Estate Planning for Couples

team@salonbranded.co.uk (Team SalonBranded) — Fri, 14 Feb 2025 12:33:19 GMT

Estate Planning for Couples 2025 Guide

Estate planning is an essential aspect of securing your financial future and ensuring that your loved ones are well cared for. While many people associate estate planning with individuals, couples have unique considerations that require tailored planning. Whether you are married, in a civil partnership, or cohabiting, having a clear estate plan in place can make all the difference.

Why Estate Planning is Different for Couples

The primary distinction between estate planning for individuals and couples is the shared nature of assets and responsibilities. While a single person’s estate planning focuses on distributing their assets and appointing Executors, couples must navigate joint ownership, inheritance tax implications, and provisions for their partner’s financial security.

Seven Key Estate Planning Considerations for Couples

When someone dies, their investments become part of their estate. The administration of these assets involves several key steps:

1 Writing a Will

One of the most critical steps in estate planning for couples is ensuring that both partners have a valid and up-to-date Will. Without a Will, intestacy rules dictate how assets are distributed, which may not align with your wishes. For unmarried couples, this is particularly crucial, as partners do not automatically inherit each other’s assets under the law.

2 Joint Ownership of Assets

Understanding how you hold property and financial assets is vital. There are two main ways couples can jointly own property:

Joint Tenancy – The surviving partner automatically inherits the deceased’s share.
Tenancy in Common – Each partner owns a distinct share, which can be left to beneficiaries of their choice.

Each option carries different inheritance implications, so it is worth reviewing how you own key assets.

3 Lasting Powers of Attorney (LPA)

In addition to a Will, couples should consider setting up Lasting Powers of Attorney for both financial and health-related decisions. This ensures that if one partner becomes incapacitated, the other can make critical financial and medical choices on their behalf.

4 Inheritance Tax Planning

One advantage for married couples and civil partners is that they can transfer assets to each other tax-free upon death. However, for unmarried couples, inheritance tax (IHT) can be a significant consideration. Effective planning, such as using tax-free allowances, gifts, and Trusts, can help mitigate unnecessary tax burdens.

5 Trusts for Asset Protection

Trusts can be a valuable tool for protecting assets, especially in complex family situations, such as second marriages or ensuring financial security for children from previous relationships. Trusts can also help mitigate inheritance tax and provide control over how assets are distributed.

6 Guardianship for Children

For couples with young children, nominating Guardians in your Wills ensures that their care is entrusted to the right people in the event of an untimely death. Without such provisions, the courts will decide on guardianship, which may not reflect your preferences.

7 Pension and Life Insurance Beneficiaries

Ensuring that pension plans and life insurance policies have the correct nominated beneficiaries can prevent unintended complications. Regularly reviewing and updating these details helps guarantee that the right people receive financial support.

Estate Planning for Couples vs Single Individuals

Get in touch with our team today

Estate planning for couples requires careful thought and professional guidance to ensure that both partners’ wishes are respected, financial security is maintained, and tax liabilities are minimised. Whether you are newly partnered or have been together for years, it is never too early to put a robust estate plan in place.

At Oak Shields, we specialise in creating tailored estate plans that reflect your unique circumstances and priorities. Contact us today to ensure your future is well protected.

What Happens to My Investments When I Die?

Wed, 08 Jan 2025 16:36:31 GMT

What Happens to My Investments When I Die?

When it comes to estate planning, many people focus on their homes, personal belongings, and other tangible assets. But what happens to your investments when you pass away? Whether you hold shares, ISAs, property portfolios, or a pension, understanding the fate of your financial investments is crucial for ensuring your wealth is distributed according to your wishes.

Investments After Death: The Legal Process

When someone dies, their investments become part of their estate. The administration of these assets involves several key steps:

1 Probate and Estate Valuation

Before any investments can be distributed, your estate will go through probate (if required). During this process, the Executor of your Will (or an Administrator if you die intestate) will assess the value of all your assets, including investments. This valuation is crucial for calculating inheritance tax (IHT).

2 Tax Considerations

Inheritance Tax: If the total value of your estate exceeds the IHT threshold (currently £325,000 in the UK), your beneficiaries may be liable for tax on the excess. Certain investments, like AIM-listed shares, may qualify for tax relief.

Capital Gains Tax (CGT): If investments are sold during the estate administration, CGT might apply. However, assets are typically revalued at the date of death, often mitigating large CGT liabilities.

3 Transfer of Ownership

Once taxes are settled, your investments can be transferred to your beneficiaries or liquidated and distributed as cash, depending on the instructions in your Will.

How Different Investments Are Handled

Stocks and Shares
Shares can be transferred directly to beneficiaries or sold by the Executor. Many investment platforms allow beneficiaries to open accounts to receive transferred shares.

ISAs
Your Individual Savings Account (ISA) loses its tax-free status upon death. However, if you have a spouse or civil partner, they can inherit an additional permitted subscription (APS), effectively transferring your ISA allowance to them.

Pensions
Pensions usually fall outside your estate for IHT purposes. Most pensions allow you to name beneficiaries, and these funds can be passed on tax-efficiently, especially if you die before age 75.

Property Investments
Rental properties or commercial real estate may require more complex administration. These assets might generate ongoing income or involve costs (such as mortgage payments), so clear instructions in your Will are essential.

What Happens Without a Will?

If you die intestate (without a Will), your investments will be distributed according to the rules of intestacy. You can read more about this in our Insight below.

Steps to Protect Your Financial Legacy

To ensure your investments are managed and distributed as you intend, consider these steps:

1 Create a Will

Outline exactly who should inherit your investments and any conditions for their distribution.

2 Name Beneficiaries

For pensions, insurance policies, and other financial products, ensure your beneficiary nominations are up-to-date.

3 Utilise Trusts

Trusts can provide greater control over how investments are used, particularly for young or vulnerable beneficiaries.

4 Talk to Us

Estate planning for investments can be complex, especially with changing tax laws. Get in touch with us today and we will help you navigate these challenges effectively.

Plan Today, Protect Tomorrow

Planning for what happens to your investments when you die isn’t just about protecting your wealth—it’s about providing clarity and peace of mind for your loved ones. By taking proactive steps today, you can minimise stress, reduce tax liabilities, and ensure your financial legacy benefits the people and causes you care about most.

Estate Planning for Single People

Fri, 27 Sep 2024 13:27:04 GMT

Estate Planning for Single People

When it comes to estate planning, many people assume it’s only relevant for couples or families. However, for single individuals, having a comprehensive estate plan is just as crucial. Whether you have no children or your closest relatives live far away, planning ahead ensures your assets are managed according to your wishes and can provide peace of mind for the future.

Estate planning is about preparing for the management and distribution of your assets after your death. For single individuals, the process may involve unique considerations as there may not be a spouse or children to automatically inherit your estate. In this post we will breakdown the essential steps and considerations when it comes to your estate planning.

Create a Will

A Will is a fundamental part of any estate plan. It specifies how you want your assets to be distributed and can name an Executor to manage your estate.

Choosing an Executor

This person will be responsible for ensuring that your wishes are followed and your estate is managed properly. Pick someone reliable and trustworthy.

Distribution of Assets

Decide how you want your belongings, property, and investments to be distributed. You can leave assets to friends, charities, or other organisations that are meaningful to you.

Consider Setting Up a Trust

A Trust allows you to manage your assets during your lifetime and specify how they should be distributed after your death. This can be particularly useful for avoiding probate, maintaining privacy, and ensuring your wishes are carried out.

Revocable Living Trust

This type of Trust can be altered or revoked during your lifetime. It can help you avoid probate and manage your assets efficiently.

Charitable Trusts

If you’re passionate about certain causes, you can set up a charitable Trust to benefit your chosen charities while still providing for your loved ones or other beneficiaries.

Designate Powers of Attorney

Powers of Attorney allow you to appoint individuals to make decisions on your behalf if you become incapacitated.

Financial Power of Attorney

This person will handle your financial matters, such as paying bills or managing investments, if you are unable to do so yourself.

Health Care Power of Attorney

This individual will make medical decisions on your behalf if you are unable to communicate your wishes.

Planning for Your Assets

For single individuals without direct heirs, planning for your assets involves deciding who will benefit from your estate. Here are some options to consider:

Designate Beneficiaries

You can name specific individuals, friends, or organisations to receive your assets. Ensure these designations are clearly outlined in your Will or Trust documents.

Keep it up to date

Update beneficiary information for retirement accounts, insurance policies, and other financial accounts to reflect your wishes.

Consider Charitable Giving

If you’re passionate about certain causes or organisations, consider including charitable gifts in your estate plan. This can be done through bequests in your Will or by setting up charitable Trusts.

Charitable Bequests

You can leave a specific amount or a percentage of your estate to a charity.

Donor-Advised Funds

These funds allow you to make charitable donations during your lifetime and provide for charitable causes after your death.

Plan for Your Digital Assets

In today’s digital age, it’s essential to plan for your online presence and digital assets.

Digital Accounts

Include instructions for accessing and managing your online accounts, including social media, email, and digital files. Wills can also include Copyright, IPs and royalties.

Cryptocurrency

If you hold cryptocurrency, include instructions for accessing and distributing these assets.

Review and Update Regularly

Estate planning is not a one-time task but an ongoing process. Regularly review and update your estate plan to reflect any changes in your life circumstances, such as changes in your financial situation, relationships, or wishes.

Life Events

Update your plan after major life events, such as the acquisition of new assets or changes in your personal relationships.

Periodic Reviews

Regularly review your Will, Trust, and other estate planning documents to ensure they align with your current wishes.

Get in touch

Estate planning is a vital process for everyone, including single individuals. By taking the time to create a Will, set up Trusts, and designate Powers of Attorney, you can ensure that your assets are managed and distributed according to your wishes.

Whether you choose to leave your estate to friends, family, or charitable causes, having a clear plan in place provides peace of mind and ensures your legacy is honoured.

If you’re unsure where to start, get in touch with us today and we can guide you through the process and help tailor a plan to your unique needs.

How can I pass my assets to my descendants?

Fri, 13 Sep 2024 16:57:08 GMT

How can I pass my assets to my descendants?

As an experienced team of estate planners, we often come across this question from our clients - How can I pass my assets to my descendants? You have worked hard throughout your whole life, wishing your savings could ease some of the financial pressure on your children and grandchildren when you pass away. Unfortunately with the Inheritance Tax at an all time high of 40%, the reality is that a large part of your assets may be taken before they pass to your descendants. There are a few different types of inheritance that you need to be aware of to make sure that you are providing a strong future for your family.

Cash Legacies

What is a Cash Legacy?

A cash legacy is a specified amount of money that you can include in your will. It is a fixed sum, distinct from a share of the residue, which is a percentage of the overall estate.

Advantages

Flexible

You can withdraw and spend the money whenever you wish. Having a certain amount of cash in your bank account will be useful, especially if you have an urgent financial need or need to deal with an unexpected event.

Disadvantages

Inheritance Tax Payable

The amount of the cash in your bank account or in your safe will be directly accumulated towards your estate when you pass away. If your estate exceeds the Inheritance Tax threshold (also known as the Nil Rate Band), Inheritance Tax will be payable.

Lifetime Gifts

What is a Lifetime Gift?

Lifetime Gifts allow you to give money out in advance while you are still alive. It is an easy and straightforward way to provide for your descendants however be warned as in some cases it can trigger Inheritance Tax.

Advantages

Use Up your Annual Allowance

Everyone has an annual allowance of £3,000 from which they can make gifts. You also have additional allowances on special occasions such as weddings. Any gift within the allowance will not be inheritance taxable in any circumstances.

Disadvantages

Potentially Taxable

If you decide to give out more than the annual allowance, the 7-year rule for Potentially Exempt Transfers (PET) applies. The exceeding gifts may be taxable if you pass away within 7 years.

Allowances such as Nil Rate Band and Taper Relief may be applicable according to the amount and the year when the gifts were made, however the maximum chargeable rate for lifetime gifts is the same as normal Inheritance Tax rate of 40%. Therefore, make sure you consult an estate planning professional and be cautious when making gifts during your lifetime.

Investments

Advantages

Potential Profit

Even though a lot of investments (e.g., ISA, stocks and shares) accumulate towards your estate, the main difference between cash and investment is there are potential gains. Depending on the product and its yield, you can possibly make huge and regular profits which outweigh the loss in tax paying.

If this is something you are interested in, get in touch today as we have a dedicated team of financial advisors who can provide you with professional investment advice.

Disadvantages

Carrying Risk and Other Taxes

There are risks in making any investment, again depending on the product you purchased. In addition, investment not only accumulates Inheritance Tax when you pass away, it will potentially trigger other tax payable, including Capital Gains Tax when the investment is sold, and income tax for any dividend and interest received.

Life Insurance Policies

Advantages

Normally No Inheritance Tax is Payable

The value of the life insurance policies will not accumulate towards Inheritance Tax. It is a very tax efficient method to pass on your money.

Disadvantages

Inflexible and Unrecoverable

In most instances of insurance policies, the beneficiaries are decided by the trustee, who is the insurance company, on a discretionary basis. The money in the policy will not be passed on according to your Will. Therefore, you lose control of the money once you pay into the policy. Also, you cannot withdraw any cash from life insurance policies. It provides hardship if you have any urgent financial need later in life.

Plan your future today

Despite all this, there is no definite right or wrong answer to which way you should pass on your assets. The key point is to consider your circumstances carefully and select the best option. If you have any questions, our professional team of estate planners are here to provide you with the best fit plan.

What to do when someone dies

Fri, 23 Aug 2024 16:53:29 GMT

What To Do When Someone Dies

Losing a loved one is an incredibly challenging experience and, in the midst of grief, it can be overwhelming to manage the practical tasks that follow. Understanding what to do when someone dies can help make this difficult time a little more manageable. This guide will walk you through the essential steps to take when a loved one passes away.

Step 1: Notify the Authorities

If the death occurs at home and is unexpected, your first step should be to call emergency services. If your loved one was under the care of a doctor or hospice, notify them, and they will guide you through the process. If the death happens in a hospital or care home, the staff will handle this for you.

Step 2: Get a Medical Certificate

A medical certificate confirming the cause of death is required before you can register the death. This certificate is usually provided by the doctor who was treating the deceased. In the case of unexpected or unexplained deaths, the Coroner may be involved, which could delay this step.

Step 3: Register the Death

You must register the death within five days (in England, Wales, and Northern Ireland) or eight days (in Scotland). This can usually be done at your local Register Office. You will need the medical certificate and may also be asked for details such as the deceased’s full name, date, and place of birth, and occupation. Once the death is registered, you will receive the Death Certificate and the necessary documents to arrange the funeral.

Step 4: Arrange the Funeral

With the death registered, you can proceed with funeral arrangements. Check if your loved one left a Will or any instructions regarding their funeral wishes. If there is no Will, the closest family members will typically make the decisions. Funeral Directors can help you with the planning and ensure that everything is handled with care and respect.

Step 5: Notify Relevant Parties

Inform family members and friends about the death. Additionally, you will need to notify Government agencies, banks, insurance companies, and any other organisations with which the deceased had dealings. You may want to use the “ Tell Us Once ” service, available in the UK, which allows you to report a death to most Government organisations in one go.

Step 6: Locate the Will

Finding the Will is crucial as it outlines how your loved one’s estate should be managed and distributed. The Executor named in the Will is responsible for carrying out these wishes. If you’re not sure where the Will is kept, check with the deceased’s solicitor, bank, or personal papers. You can also look at the National Will Register to check if a Will has been registered with them.

Did you know that 52% of people don’t know where their parents store estate planning documents?

Not knowing where these crucial documents are can lead to confusion and stress during difficult times. Having open conversations about estate planning is vital for ensuring everything is in place when it's needed most.

Step 7: Begin the Probate Process

If your loved one left a Will, the Executor will need to apply for probate (known as confirmation in Scotland). Probate gives the Executor the legal authority to manage the deceased’s estate. This can include paying debts, closing accounts, and distributing assets according to the Will. If there is no Will, an Administrator will be appointed by the court to handle these responsibilities.

Step 8: Manage the Estate

Once probate is granted, the Executor or Administrator can begin managing the estate. This involves collecting assets, settling debts, and distributing the remaining estate to the beneficiaries as outlined in the Will. Here at Oak Shields, we can deal with a range of disputes or complexities, so get in touch if you have any questions.

Step 9: Consider the Financial Implications

Handling an estate can have financial implications, including taxes. Depending on the size and complexity of the estate, inheritance tax may be due. The Executor is responsible for ensuring that all taxes are paid before the estate is distributed. Professional advice can help ensure everything is handled correctly.

Step 10: Seek Support

Finally, it’s important to take care of yourself during this time. Dealing with the death of a loved one will be emotionally taxing, so don’t hesitate to seek support from friends, family, or professional counsellors. There are also many charities and organisations that offer bereavement support.

We Are Here to Help

Dealing with the aftermath of a death can be a daunting task, especially while grieving. By following these steps and seeking the right support, you can navigate this difficult period more smoothly. At Oak Shields, we’re here to help you with any estate planning needs, whether you’re managing a loved one’s estate or planning for the future. Please feel free to contact us for advice or assistance.

Can You Leave Things to Pets in a Will?

Wed, 31 Jul 2024 16:51:31 GMT

Can You Leave Things to Pets in a Will?

A Guide to Estate Planning for Pet Owners

For many of us, pets are not just animals; they are cherished companions and beloved members of the family. Considering what would happen to your pets if you were no longer around is an important part of protecting their welfare. In this guide, we answer the common question, "Can you leave things to pets in a Will?" and provide insights into how you can ensure your furry friends are well cared for after you're gone.

Can I Leave Money to My Pets?

The short answer is no . In England and Wales, you cannot leave money directly to your pets . Pets are considered assets of your estate, not beneficiaries. This means any clause in your Will that leaves money or property to your pet will fail. Instead, the assets will pass into the residue of your estate and be distributed among your residuary beneficiaries.

What Are the Alternatives?

While you can't leave money directly to your pet, you can still ensure their care by setting up a Trust . Here's how:

Who Will Care for My Pets?

Choosing a caregiver for your pets is crucial. You can:

Nominate a Caregiver

Appoint a trusted friend or family member to take care of your pet, along with a gift of money for their maintenance.

Animal Charities

Consider requesting that your pet be taken in by a specific charity. For example, Dogs Trust or Cats Protection have schemes to care for pets until they are rehomed. However there are potential pitfalls in doing this and it needs to be done in a specific manner.

The $12 Million Dog

One of the most extraordinary instances of leaving an inheritance to a pet involves Leona Helmsley and her Maltese dog, Trouble. Upon her death in 2007, the real estate mogul left $12 million to Trouble, more than she left to two of her grandchildren, whom she disinherited entirely. This case caused a media frenzy and even led to death threats against the dog, necessitating a security detail.

However, a judge later reduced Trouble’s inheritance to $2 million, reallocating $6 million to the disinherited grandchildren and the remainder to charity. Despite the reduction, Trouble’s case remains a striking example of the lengths some pet owners will go to ensure their pets' care.

A Helping Paw

Ensuring your pets are cared for after your death requires thoughtful estate planning. While you cannot leave money directly to your pets, creating a Trust, appointing Trustees, and nominating a caregiver can provide peace of mind. For those seeking guidance, consulting with an estate planning professional can help you navigate the legal nuances and secure your pet’s future.

If you have any questions about setting up a Pet Trust or need assistance with your estate planning, our team is here to help. Contact us today to ensure your beloved pets are well taken care of, no matter what the future holds.

Death Doesn't Discriminate

Fri, 21 Jun 2024 13:18:25 GMT

Death Doesn't Discriminate

Estate Planning for Same Sex Couples

Throughout life, one truth remains constant: death doesn't discriminate. Whether you're part of a same sex couple or any other relationship, ensuring your estate is managed according to your wishes is crucial. Without proper estate planning, the aftermath of a loved one's passing can be fraught with legal battles, familial discord, and unintended consequences. For same sex couples, the importance of clear and comprehensive estate planning cannot be overstated.

The Unique Challenges Faced by Same Sex Couples

While strides have been made towards equality, same sex couples often face unique challenges when it comes to estate planning. Even with legal recognition of same sex marriages, certain family members may not fully accept these relationships. In the absence of a well-drafted estate plan, these relatives could contest your wishes, leading to outcomes that neither partner would have wanted.

Imagine this scenario: a same sex couple, Alex and Emma, have been together for over a decade. They own a home together, share bank accounts, and have built a life filled with cherished memories. Tragically, Emma passes away unexpectedly without an estate plan in place. Despite their long-term partnership, Emma's estranged family claims Emma's assets, leaving Alex in a precarious financial situation. Without legal documentation to support their relationship and intentions, Alex may face the daunting task of proving their rights in court, all while grappling with immense grief.

Key Elements of Estate Planning for Same Sex Couples

To avoid such distressing situations, it's essential for same sex couples to have a comprehensive estate plan. Here are some key elements to consider:

Honouring Your Legacy

Your relationship, love, and shared life deserve to be honoured and respected. By taking proactive steps to create a solid estate plan, you can ensure that your wishes are carried out, and your partner is protected. With the right planning, you can safeguard your legacy and provide security for the one you love.

At Oak Shields, we are committed to helping same sex couples navigate these important decisions. Contact us today to learn more about how we can assist you in crafting an estate plan that truly reflects your wishes and protects your loved ones.

By focusing on these critical aspects, you can take control of your future and ensure that your relationship and assets are protected, regardless of life's uncertainties. Don't wait until it's too late—start your estate planning journey today.

LPA vs Deputyship - What are the differences?

Tue, 23 Apr 2024 11:30:19 GMT

LPA vs Deputyship - What are the differences?

Powers of Attorney and Deputyship Orders grant individuals the legal authority to act and make decisions on behalf of someone who has lost mental capacity. However, there exist several fundamental distinctions between the two. Essentially, Powers of Attorney serve as proactive measures for the future – established in anticipation of a loss of capacity. Conversely, Deputyship Orders can be viewed as a final option, implemented when decisions must be made for another individual but no one has been authorised to do so legally. This article offers insights into these legal instruments and clearly outlines their differences.

What is a Lasting Power of Attorney (LPA)?

LPA gives authority to another person to act on your behalf when you lose capacity. There are two types of LPA - Property & Financial, Health & Welfare.

What is a Deputyship?

A Deputyship Order is a legal document that allows an individual to make decisions for a person who lacks mental capacity. This person is appointed after the person has lost capacity.

What are the differences?

Cost Breakdown

LPA

It costs £82 to register each LPA with the Office of the Public Guardian unless you get a reduction or exemption.

This means it costs £164 to register both a Property and Financial Affairs LPA and a Health and Welfare LPA .

Deputyship

There is an initial cost of £371 to submit an application to the Court of Protection, plus potential fees such as assessment of the level of supervision fee, paying for a security bond and potentially court fees, hearing fees and appeals on top of that.

After you have been appointed as a Deputy, there is an annual cost in the form of a supervision fee, which is higher or lower depending on the level of supervision your Deputyship needs.

The general supervision fee is £320, and £35 for minimal supervision. Minimal supervision could apply if you manage less than £21,000. New Deputies must also pay an assessment fee of £100.

How does it work?

If the person who has lost capacity survives more than five years from the day that the LPA or Deputyship was put in place, the total costs can be seen here:

If there was an LPA in place the fees would only total £164, however if there was a Deputyship in place then it would work out at around £2,342.

The Deputyship fees would be the initial cost to submit the application (£371) multiplied by 2 for the separate LPAs, then with an additional £320 per year in supervision fees.

We understand that when a loved one dies it’s distressing and the last thing you want to do is deal with paperwork especially if you're the person in charge of affairs. Contact us today and organise your LPA so that you never leave your family in the dark.

How does Getting Married Affect Your Estate Planning?

team@salonbranded.co.uk (Team SalonBranded) — Thu, 29 Feb 2024 15:23:28 GMT

How Does Getting Married Affect

Your Estate Planning?

February is the month of Love and also a great time to express your affection with your loved ones as well as making important life decisions like getting married. If you are planning to propose to your boyfriend or girlfriend, or you already have your wedding plans, there are a few important estate planning points worth taking note of.

Your Will Needs Updating

Did you know that your current Will will become invalid after getting married? It does not matter whether you have included your future spouse or partner as a beneficiary or not, once you are married, the Will automatically becomes invalid.

If you sadly pass away before drafting up a new Will, your estate will be treated as intestate and distributed under the statutory order. If you would like to learn more about Intestate Wills, you can read our insight 'What happens if I pass away without a Will?'.

Spousal Exemption on Taxation (IHT

and CGT)

All gifts and transfers are Inheritance Tax and Capital Gains Tax free between spouses. The amount of transfer is completely exempted and will not take up any of the annual exemption (£3,000). It provides great financial flexibility for couples during their lifetime. Also, when one of you passes away, all assets transferred to the surviving spouse will be exempted from IHT.

Enjoy a Greater IHT Allowance

When the surviving spouse passes away, the estate can transfer the unused Nil Rate Band of £325,000 and Residence Nil Rate Band of £175,000 from the deceased spouse. The estate can enjoy up to £1m of Inheritance Tax allowance in total for inheritance.

Owning Joint Assets - What are the

Pros and Cons?

Having joint bank accounts and taking out mortgages in joint names can make it easier for couples living together. In terms of estate planning, having joint assets can effectively speed up the probate process when one of you sadly passes away. On the other hand, upon one of you passing away, most joint assets follow the rule of survivorship which means the other person will receive everything, regardless of your wish.

Get in touch with our team today

Before you exchange vows, consider this an opportune time to embark on a journey of joint financial responsibility, ensuring that your love story is accompanied by a well-protected future. Speak to our professional team today to start planning your legacy.

Why all Business Owners need a BLPA

Thu, 08 Feb 2024 18:00:12 GMT

Why all Business Owners need a BLPA

A new year is certainly a great opportunity for new businesses. No matter if you are putting your ideas into a start-up, or growing your existing business, you always need to plan and make sure your business is safe if the worst happens to you. If you become incapacitated, the last thing you need upon recovery is to return to find your business in trouble.

What is a BLPA?

BLPA stands for Business Lasting Power of Attorney . It is a crucial document as it allows you to appoint attorneys who deal specifically with your business assets and make business decisions when you are incapacitated. Your BLPA can be of slightly different usage depending on the nature of your business.

Who needs a BLPA in my business?

What can a BLPA do for me ?

Avoid the hardship

If you are a business owner, speak to one of our professional estate planners today and we can provide you with tailored advice on putting a BLPA in place.

Where Should You Store Your Important Documents?

Wed, 13 Dec 2023 15:40:09 GMT

Where Should You Store Your Important Documents?

Making a Will and a Lasting Power of Attorney can give you ‘Peace of Mind’ however, one of the main concerns after making a Will is where to store your document in order to keep it safe and confidential. According to the National Wills Report 2023, only 18% of people have created a dedicated space for their important documents. The case studies below are examples of what can happen if you do not have sufficient planning and document storage in place.

Losing Documents

Laurie made a Will with Oak Shields in March 2020 and left it in one of her bedroom drawers. In January 2023, Laurie developed dementia and moved into a care home. Due to this, Laurie's Attorney had to sell her house to cover the cost of the care home fees. Laurie thought that she gave her Will to her son to look after and did not make her Attorney aware of the new location of the Will. Her son Michael never received the Will and so it was lost.

Laurie could not make a new Will from scratch as you can no longer make a Will if you do not have the mental capacity to do so. In this situation, your Attorney has to go through a very costly and lengthy process to make a Will on your behalf.

We would strongly recommend storing your Will with a professional and tell your Attorney the location of your Will in advance.

Family Disputes

Edward made a Will with Oak Shields in January 2023 and brought the document back to his house. Later Lorraine, his granddaughter, came to visit him and saw his Will in the living room. Lorraine discovered that her cousin who never visited her grandad Edward, is entitled to more inheritance than her. Out of anger she told everyone the contents of the Will.

Because of this, the family has entered into endless disputes including threats of legal action, with everyone urging Edward to include them in his new Will.

Your Will is a confidential document. You have no obligation to disclose any details to anyone, especially the distribution of your assets during your lifetime. Placing your Will and other legal documents into professional Document Storage can prevent family members disclosing confidential information. It is unfortunately, a common occurrence that family members look for their elderly relatives' Wills.

Why can't I just keep my documents at home?

Fire and Floods

Natural disasters can cause irreversible damage to your home and your belongings, including your Will and other important documents.

Theft and Burglary

Legal documents are a potential target for thieves and burglars and there is little to no chance of recovering them.

Moving House

Moving house can be a stressful experience and, added to that, many items can get lost or damaged during the move.

Avoid the hardship

Store your important documents with us today, including your Will, Registered Lasting Power of Attorney, Enduring Power of Attorney, Marriage Certificate and Title Deeds etc. Our Document Storage Service can give you piece of mind as well as protection for yourself and your loved ones.

* With effect from 26 July 2023, the amount of Statutory Legacy has been increased from £270,000 to £322,000 under The Administration of Estate Act 1925 (Fixed Net Sum) Order 2023.

What happens if I pass away without a Will?

Tue, 05 Sep 2023 13:13:10 GMT

What happens if I pass away

without a Will?

Life is full of surprises and, while we can't predict everything, we can plan ahead. Ever wondered what happens if you pass away without a Will? In this article we look into what can happen to your estate after you're gone.

When you die without a Will, or more accurately without a valid Will, your estate falls into intestacy. This basically means a situation in which someone dies without leaving instructions about to whom your assets should be given. Your assets will then be distributed according to the Rule of Intestacy.

What is the

Rule of Intestacy?

Some people may assume that their spouse will inherit everything if they pass away without a Will. This is actually not true under the Rule of Intestacy.

Your estate will be distributed according to a specific order if you leave no Will, outlined in section 46 of the Administration of Estates Act 1925, which applies in England and Wales.

Married or Civil Partnership

The first person to receive your estate is your surviving spouse. He or she will receive £322,000* out of your estate, all your personal possessions and any jointly owned assets. The remaining assets will be distributed to your spouse and children, shared equally.

Unmarried, Divorced or Widowed

with Children

All of your estate will be divided equally between your children. However, any unmarried partner and their children will not be entitled to inherit anything from your estate, no matter for how long you have been living together.

Single

with No Children

If you are single, and have no child, the next person who will inherit your estate will be your parents, siblings or other relatives accordingly.

What if my children are

Under 18?

They will be classified as minors if they are below 18. If they are entitled to inheritance, the assets will be held in Trust by their surviving parents until they turn 18.

What about my

unmarried partner?

Unfortunately, an unmarried partner and their children have no entitlement to your estate under intestacy.

Inheritance Tax on Intestacy

An intestate estate is still liable to pay inheritance tax if it exceeds the allowance. Your surviving family members will have to apply to become an administrator, then they will need to complete the inheritance tax calculation and settle the tax bill.

However, applying for a Letter of Administration can be a very time consuming and stressful process. It could take around 16 - 20 weeks for a decision to be made, meanwhile an intestate estate is likely to take more time to proceed, as the Court will need to decide who should be the administrator of the estate.

Avoid the hardship

Having a Will in place allows you to express your wishes as well as effectively protect the inheritance of your loved ones. This can also avoid disappointment and potential disputes. Speak to our professional team today to put your Will in place.

* With effect from 26 July 2023, the amount of Statutory Legacy has been increased from £270,000 to £322,000 under The Administration of Estate Act 1925 (Fixed Net Sum) Order 2023.

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Married or Civil Partnership

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with Children

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with No Children

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Under 18?

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