Yes you can get your Will done online, there are APPs about that will take you through a series of crafted questions and the answers are used to populate a simple template to produce a Will, but will you really be hAPPy with it?
What if you dont fully understand the significance of a question? Even if you have a good command of the English language, if the questions are even in the remotest of legalease it is going to cause you problems answering, and probably to just save a few quid. You cant ask an APP to check your logic, so the result will cast a shadow of doubt in your mind about its suitability.
Frankly, there is no substitute for engaging an experienced Will-writer. The scope of questioning is designed to understand you, your estate, raise awareness of inheritance tax, check your Domicile status and these are just some of the fundamentals. How is an APP going to check your last Will? Even a very basic Will should incorporate some trustee powers that will come into play if a trust is set up by your Will for minor beneficiaries, do you know what to include or exclude? I’m just scratching the surface here..
Attendance notes, checking the identity and testamentary capacity of the individual that wants the Will, who was present, how did it go, what was highlighted, the list goes on…
All I am saying is ‘buyer beware’ and please dont forget that one day your Will is going to pass on everything you own, so you do need to be confident that it will work, just saying…
If you’re now concerned having thought about it, good, I am glad to have cast some doubt.
We have an excellent local reputation and would be delighted to help you so why not contact us now? Thanks for reading by the way.
We are members of the Institute of Professional Willwriters and comply with a strict code of practice approved by the Chartered Trading Standards Institute, for your peace of mind, and ours. Independent Will-writers are there for your benefit and provide an excellent personal service, a real credible alternative to the typical High Street solicitor.
5th June 2017
What are digital assets?
In this ever-growing digital age of ours we all have an ever-bigger online presence than before and access it on more and more electronic devices, these are your digital assets.
Come to think of it, you have used one of them to visit my blog today, your email address, plus, you would have used a laptop, desktop computer or smart phone.
There are countless examples of digital assets, email accounts, digital music, digital photographs and videos, social network accounts, financial accounts, and online stores. You may also have a desktop computer, laptop, tablet, smart phone, storage devices and any similar digital device to name but a few.
94% of the population have online accounts which are being used as part of everyday life, with the average person in the UK having 26 different accounts and 10 different passwords.
What happens to your digital assets?
When surveyed, 75% of people said their children wouldnt be able to access their digital assets when they died and over 50% of people said their partner wouldnt have access.
20% of bereaved families, found it too difficult to locate and deal with the digital assets and so didnt bother which means it could be lost forever. What if you were to become incapacitated? Or would like someone else to manage your finances? Would your trusted people, loved ones, deputies or attorneys be able to access your digital assets to manage your affairs?
There are potential issues that may arise without proper planning;
- Will your loved ones know what digital assets you have?
You may incur costs/subscriptions if not all digital assets are known. Or maybe you have investments you would like to be passed on? What is the worth of your digital assets?
- Will your loved ones know what to do with them?
- Do social media accounts need to be closed or memorialised, software uninstalled? Images stored?
Where should you start?
We should all make a list so that at least your family/executors actually know where to begin, of course you should not list your login and password details together. Consideration should be given to including a clause in your Will and Lasting Power of Attorney, and if you would like our help please contact us here.
Can you protect your family’s inheritance and solve your Inheritance Tax liability, that is the question?17th May 2017
Inheritance Tax and the Residence Nil Rate Band
(IHT & the RNRB)
From 6/4/17 every client will get an extra 100k allowance on top of their normal 325k NRB for IHT. A further 25k is to be added each year until Apr-20 when the RNRB will be 175k, + 325k makes the 500k promised by the Tory party policy objective. Couples with children can then get 1M but there are conditions attached.
There must be a ‘qualifying residential interest’ in the family home and it must be left to ‘lineal descendants‘ to get the RNRB. If it is put into a DT, Discretionary Trust either during lifetime or via a Will, then it will eventually be transferred to the descendants at the discretion of the Trustees, rather than by the client directly and accordingly will not qualify for the RNRB.
The available RNRB will be limited by the value of the family home, and if the total estate exceeds 2M then the RNRB is reduced on a sliding scale to the point where there is no extra allowance if the estate is above 2.7M in Apr-20. The RNRB will only be relevant to clients with a single NRB and assets above 325k but less than 2M, and for couples with assets above 650k and below 2M.
Where Mr dies and leaves everything to Mrs, she will gain his transferable NRB & RNRB. If a couple have moved to a smaller property, there are ‘downsizing provisions‘ to calculate the amount of relief that can be claimed.
Wealthy clients will now face a dilemma
They may be more concerned about keeping their assets in the bloodline and making use of either a DT, Discretionary Trust on second death to retain assets or FAPTs, Family Asset Protection Trusts during lifetime which help to avoid IHT/ each others care costs/ grant of probate costs/ children inheriting at the wrong time/ solving the childrens IHT etc. Other options are available to deal with the value of assets over the NRB and subject to IHT such as using BPR relief where given the 2 year period of investment, these assets can simply be transferred to the FAPT IHT-free thus avoiding the need to use the RNRB, or even having to wait 4 years for it to be fully implemented.
Where assets are left in trust, only an IPDI, disabled persons trust, 18-25 trust and bereaved minor trusts will qualify, conversely as already stated a DT is excluded even if the only beneficiaries of it are lineal descendants, however it is still possible to use a s144 deed of appointment out of the Trust within 2 years of the date of death to claim the RNRB. This will present some clients with a dilemma about which is their greatest enemy, protecting bloodline assets in trust or solving their IHT liability? Understanding the consequences of your options is an important step towards getting the right plans in place.
One final thought
Married couples benefit from spouse exemption on a first death scenario which defers the IHT to second death, remember that there are far less planning options available on second death to deal with the problem, meaning that planning advice needs to be taken early and implemented well in advance, there are IHT planning options that take either 7, 2 or 0 years to put in place and much depends on the type of assets held, the clients attitude to risk and motivation to solve these problems.
If you would like our help, contact us here to arrange a fact finding meeting.
21st April 2017
BREAKING NEWS INDEED
The Governments decision to change the flat-rate probate fee to a tiered system based on the value of the estate has been scrapped (could this be connected with Theresa Mays snap General Election on June 8th) following an announcement by the Ministry of Justice this morning.
The proposed fee changes would have seen the cost of applying for the Grant of Probate increase by more than 9,000% for large estates, so the question that follows has to be: Will this now come into force after June 8th?
Regardless of this announcement, we will continue to offer families good value fixed fees and an exceptional service when it comes to choosing how to deal with the administration of a loved one’s estate.
Fixed fees means just that, if you think we might be able to help, simply give us a call on Tel no. 0116 2784862 or email using the Contact Us form.7th April 2017
A lot of us have Wills that contain trust clauses these days to help protect the familys assets, usually on a first death scenario when half the family home goes into Trust. These trust work well but do not forget that you will have appointed trustees to be in charge of that share, possibly many years ago. So are you still happy with the trustees you chose?
There is a double edged meaning to this question that you should consider carefully, let me explain.
the straightforward point here is that you may have simply fallen out with who you originally chose. If you survive your partner/spouse, and are the life tenant of the deceaseds share of the house, do you really want to face conflict with the estranged or out of favour Trustees? Are you really going to agree? It could well be time to update your Will!
If you are both the life tenant and a Trustee of the deceaseds share of the house, you could have a problem later on in life because you may well be seen to have the power to directly or indirectly influence the asset(s) in the Trust. If you are unfortunate enough to have to go into care, it could be seen that you have access to the trust assets, and that would not be good news for very obvious reasons. Current thinking recommends you keep it simple and only benefit from the life tenancy, let others that you trust be the trustees of the half share held in the Will trust, but choose wisely and keep your eye on the ball.
The moral is to
Regularly review your Will, we come across plenty that should have been changed a long time ago. We offer free Will updates to our clients that use our safe and secure document storage facility. You will be hard pressed to find a better place to put your Wills, and all other important documents.
We are happy to help, contact us here.3rd March 2017
New Probate fees from 1st May 2017
It has taken a year for the Governments consultation process to approve an increase in the costs of obtaining a Grant of Probate. The relatively cheap fixed fee is out in favour of a new-tiered fee system based on the value of the deceaseds estate, so :
- at less than 50.000 – No probate fee
- at 50,000-300,000 – 300 probate fee
- at 300,000-500,000 – 1,000 probate fee
- at 500,000-1m – 4,000 probate fee
- at 1m-1.6m – 8,000 probate fee
- at 1.6m-2m – 12,000 probate fee
- at more than 2m – 20,000 probate fee
There has been a lot of strong opposition to the plans but it has made no difference.
Probate (or Estate Administration by its common name)
is rarely straightforward and not for the feint-hearted. If you would like help following the death of someone close, simply get in touch and we will help guide you through, contact us here.
25th February 2017
What can you do about Inheritance Tax if you are a landlord?
One thing landlords often overlook in building up their portfolio is Inheritance Tax. Every year approximately 4 billion is paid in inheritance tax and a large chunk of that comes from property.
Adding a Protective Property Trust in your Will is going to help protect it for your familys future benefit3rd February 2017
Adding a Trust in your Will is a great idea!
Passing on what youve worked hard for to your family is a basic right and instinct. These days a basic Will isn’t necessarily going to be a robust enough solution. Did you know that a standard Will keep things nice and simple but fails to provide any protection.
A Protective Property Trust in your Will is suitable for co-owners of a property (married or not) owned as tenants in common.
When one passes away, that share of the house is left in Trust for the benefit of their loved ones. The Trust allows the survivor to live in the house rent-free for the rest of their life, and even sell or move house if they want to. If the survivor then required care later in life, the Trust protects the half a house in Trust from those care
fees. If the survivor was to remarry, the Trust protects the half a house from passing to the new husband or wife.
There are other types of Trust that may be suitable for you, and we can advise you which type best suits your circumstances.
We can come to you and explain how Trusts can work in your favour. Trusts are not just for the rich, they are there for us all to use. Ask us for a FREE visit in the comfort and privacy of your own home, contact us here.
20th January 2017
£ MONEY OFF
From now until 31st March 2017 we are offering new/existing clients money off when making both types of Lasting Power of Attorney, LPA by quoting the code RSAMAR17.
We have never done this before so it is an interesting experiment from our perspective, just like you have probably never set up Lasting Power of Attorney’s before, thankfully we are good at what we do, so you can trust us to get it right first time.
Getting FREE Certified Copies of your LPAs are also vitally important. It is what we do for all our clients.
Unfortunately this week, one client experienced Aviva losing the Certified Copy LPA we sent them. Imagine if it had been the Original they had lost! We have definitely had a challenge this week with LPAs in place, I hate to think where we would have been without them.
No one knows when “things may happen” but when it does go wrong, and a Lasting Power of Attorney is needed, being without them will make life extremely difficult for family and friends to help you, just when you need them to.
TYPES of LASTING POWER OF ATTORNEY
There are two types, the Property & Financial Affairs LPA and the Health & Welfare LPA. I always recommend you do both, hence the offer, find out more here.
Use a professional to get your LPAs set up because there can be complications, there are quirks that will not be obvious to a normal lay-person. We know the system. Pay once, get it right first time, and then if you have problems we will do our best to help from the end of a telephone, this part is called Customer Service, something Aviva need to find a bit more about!