Common sense things to consider, by estate planning expert Robert Cartmell.
Estate Planning is a relatively modern term to describe a whole range of aspects from Wills to Powers of Attorney, to gift-making and Inheritance Tax planning. Robert Cartmell sets out below the main elements of what is required and suggested.
Tip 1. Adopt Will-Trusts
Will-Trusts are now common place and are part of good common sense estate planning. Having a Will-Trust rather than a basic Will provides flexibility and options for your chosen beneficiaries to ensure they protect the hard-earned estate you and your family has built up over (often) many generations as well as your wishes as to who ultimately receives the estate. Will-Trusts are not just for the wealthy, they apply to all persons who want to ensure their chosen beneficiaries inherit the estate in the most optimum manner. Get some good advice on adopting a flexible Will-Trust structure. Your beneficiaries and executors will (eventually!) thank you for taking the trouble to do so.
Tip 2. Lasting Powers of Attorney (LPAs): get them done when you have Wills prepared
Whereas a good Will-Trust helps your beneficiaries and executors in the event of your death, LPAs are there to help you personally while you are alive. LPAs apply in the event you need help with taking financial decisions or with your health in the event of mental or physical incapacity. Do not try to do these yourself. There are many pitfalls. Take advice from your Will advisor when completing your Will. LPAs are an education in themselves and taking proper time and care over understanding them from an experienced advisor will help you and your Attorneys understand the benefits of LPAs and how they can make your life a whole lot easier when subject to incapacity.
My best advice is to have them prepared for you now, whilst you are not vulnerable and whilst you are in good health and do not need them to be yet activated. Have them done and put to one side. Just remember, if you do not have LPAs and you suddenly later lose capacity, the process can be very time consuming and costly and you will not be able to execute LPAs if you have lost mental capacity to do so. Please get them done as soon as you have the opportunity to do so.
Tip 3. Arrange Digital Information Access
Have a plan of how your family/executors can access your digital information and passwords in the event of either losing capacity or death. Create a password-based folder and provide secure details and information to your nearest and dearest. As part of our Will service we can help you organise the provision of access at the right time to the right persons in a secure way.
Tip 4. Schedule significant Lifetime Gifts
Making lifetime gifts to children or family is a rewarding experience for both the recipient and donor. It can help your Inheritance Tax position also. Making a schedule of these on a spreadsheet or document file, and updating us with this, can help save considerable time for your executors in unravelling the gifts made in the 7 year period.
Tip 5. Have your Wishes and Instructions Recorded
As a standard practice in our Will and Estate Planning service, we offer to tape record meetings with you of the taking of your instructions and the provision of our advice. Particularly for Will-Trusts, recording meetings can assist the family at a later stage to understand the wishes and ensure the smooth running of the estate and trust administration.
If you would like help or advice from Robert Cartmell on the issues raised in this article, please get in touch.
Email Robert Cartmell Consulting at info@robertcartmell.co.uk to make an enquiry or arrange a discussion.