Wills and Trusts

Do I have to make a will? The simple answer is that you should rather than you have to. Any prudent adviser would encourage you to make a Will. If you don’t make a Will, then you have no control over who gets what when you die. The state will decide for you according to the “rules of intestacy” and this may not be in line with your wishes.

If you haven’t yet made a Will then you will need to sort out a few things first. You need to decide what you want to happen to your possessions, your assets (money etc.) and any property you own. You will need to decide (and get their agreement) who will act as “executors” for your Will. These are the people who will need to sort out the estate after you die and deal with the authorities. You will also need to appoint “trustees” to look after the money side (they can be the same as the executors). If you have dependent children then making a Will should include your wishes as to who should look after the children if you died, the “guardians” (having first gained their agreement!). If you are leaving money to children or grandchildren you may also wish to decide at what age you want them to inherit any money baring in mind the temptations out there for the average 18 year old!

How often should I review it? Having made a Will, you should also keep it under review at fairly regular intervals. This is often overlooked and there can be many situations where changes need to be made. Sometimes this may be a small change called a “codicil”. In other cases a new Will may need to be drawn up.

Indeed, not only should you make a Will, but you should also consider drawing up “Lasting Power of Attorneys”. These are arguably even more important as they deal not only with your money while you are still alive if you are unable to look after your own affairs, but also your personal care. This may be needed due to a wide range of circumstances such as an illness like dementia or perhaps a stroke.

What are trusts? In simple terms, a “trust” is a way of somebody (a trustee or trustees) looking after something (asset of the trust), for the benefit of someone else (beneficiary).

Because there are many variations on this theme, all of them having different effects and tax issues and so on, it gets very complicated. These variations are determined by the wording used to establish the trust and this is why it is sensible to get expert help in this area.

Trusts are mainly used in order to ensure that the right money gets to the right people at the right time. Many trusts give the trustees “discretion” over to whom and when benefits are paid.

Trusts are especially important where children are involved. All too often we see situations where a child reaches 18 and suddenly gets their hands on an inheritance. At that age it is all too easy to be less than financially responsible! Many people set up trusts so their children inherit when they reach their early or mid 20s and sometimes providing an income rather than one lump sum.

Some trusts can last up to a maximum of 80 years with “loans” being made to beneficiaries instead of actual payments out. This can be extremely useful for larger estates as funds can be loaned to the next generation and repaid on their death from their estates.

There is a wide variety of trusts that can be used in Inheritance Tax planning (IHT), such as Gift Trusts, Loan Trusts, and Discounted Gift Trusts. These are complicated plans and ones that need a great deal of care and consideration before setting up. Our specially trained advisers can discuss the various options available to you according to your individual circumstances.

At Ashwood Law we take looking after peoples’ money very seriously and, as you would expect, this means making sure that your affairs are all in order. To do this efficiently we have connections with a large number of solicitor practices who can draw up the necessary legal documents for you and can offer advice on the associated legal matters.

Will Writing and Inheritance Tax Planning is not regulated by the Financial Services Authority.

Callback request: