Wills and trusts
Why do you need a Will?
The vast majority of people put off making a Will for a variety of reasons, perhaps believing that the people they want to inherit will automatically do so, or because they don’t think it is relevant to them at this particular time.
Putting it bluntly, this is misguided.
The reality is that far too many people put off making a Will until it is too late. This poses all sorts of problems for the people left behind, and could mean that some or all of your inheritance either goes to the wrong person or to the state.
Protect your wealth with a Will
Everyone needs to make a Will. In particular, anyone with dependant relatives must do so. If you own a property or have any type of asset you would wish relatives, friends or charities to benefit from, you should also make a Will.
Wills are only for old people, aren’t they? And if you die early, your loved ones will automatically inherit your assets, right?
Sadly, these sorts of opinion are almost always incorrect.
Making a Will enables you to plan exactly what will happen to your property (estate) following your demise. This ensures that those you would like to benefit actually do so, in accordance with your wishes and at the same time avoiding any disputes between relatives.
Everyone should have a Will, but two out of three people have not yet made one, and those who have done so may not have the correct Will in place.
- In the UK, an estimated 70,000 people per year have to sell their homes to pay for Care.
- A large proportion of any inheritance is lost in future divorce settlements, to creditors or bankruptcy and unnecessary taxation.
- If you own a business or a share of a business then your spouse / partner and children may not inherit your share of it.
Trusts and Bloodline Planning
The term ‘Bloodline Planning’ means making sure your assets reach your children, grandchildren and other loved ones. A normal Will may not adequately ensure this, but setting up an appropriate Trust can prevent your inheritance from ending up in the wrong hands!
Without the correct Bloodline Planning, some or all of your children’s or grandchildren’s inheritance could be lost.
When assets are distributed to beneficiaries ‘absolutely’ through a Will (i.e. they receive cash, property or other assets as a direct lump sum payment), so much can be lost. The assets are considered to be part of the beneficiary’s estate, so they would be at risk of attack from any future divorce settlements, creditors and taxation.
Imagine the scenario…
Let’s say your son or daughter inherits assets after your death.
So far, so good.
But a year later, they get divorced from their partner, and in their divorce settlement their partner becomes entitled to half of their estate.
That’s half of what you thought you were leaving to your son or daughter!
This doesn’t need to be the case. We can help to put in place the appropriate paperwork to ensure your inheritance goes where you want it to go. And stays there.