Common sense to consider for Wills, by estate planning expert Robert Cartmell.
The basic structure of a Will is known to many. Some important aspects are often not considered or not even known of. Always take advice from a specialist before making a Will and ensure it is drawn up by someone experienced in overall estate planning. Robert Cartmell sets out below the main elements of what ought to be considered.
Tip 1. Adopt a Trust
Will-Trusts are part of good common sense Will planning. In some quarters, Trusts are still a little feared by the lay person (and some professionals) but there is no reason to do so if you have proper advice. Having a Will-Trust rather than a ‘basic’ Will provides all the flexibility your family needs ensure your hard-earned estate is better protected for your beneficiaries. Check out our online guidance at https://protrustestateplanning.co.uk/wills-specialist-advisors. 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.
Tip 2. Choose your Executors and Trustees wisely
Whilst using Will-Trusts are good common sense, the problem I most see with them is where the Trustees are not understanding or taking up their role correctly. Executors need to have a good enough understanding of the scope and expectation for delivering the estate in the optimum way for the beneficiaries whilst discharging all of their duties. Or alternatively, they should know someone who does know the requirements and to whom they can delegate their role. I like to ensure that Executors are involved in the discussions when a Will is drawn up and are consulted. Ideally executors are contacted with some initial guidance at that stage. For family trusts, I do suggest you ensure that all primary beneficiaries are represented by suitable trustees. In a simple family situation, the spouse and adult beneficiaries can all be trustees – and if that is for some reason unsuitable, have another representative – an independent one – appointed on their behalves).
Tip 3. Record your Will-Instructions
With modern systems such as video-calls, I like to offer clients the opportunity of having our Will discussions video and/or audio recorded to file. I recommend you do this and I suggest you insist that your professional advisor does so for you. That can help with any tricky situations where your wishes are, perhaps, not the ‘usual’ approach and likewise where any issue is complex and the advice might be needed to be reviewed and refreshed in future.
Tip 4. Understand the extent to which assets pass or do not pass via your Will
Many people make assumptions regarding their jointly owned property. One assumption is that their Will governs the destiny of their share, or indeed conversely, that the Will cannot govern such destiny. In fact, both options are usually available to you when making your Will. It is important also to understand which other assets pass via a Will. For example, pension assets do not usually pass via a Will. Life policies may be written into Trust and thus it is the trust arrangements that govern their destiny, not the Will. Any existing assets held in Trust are likely not to pass via your Will but instead under the terms of the Trust. It is important to review those arrangements at the same time as preparing your Will.
Tip 5. Agree with your advisor a programme for active reviews of your Wills
I always recommend you review Wills on a regular basis. It is important that you agree with your advisor a suitable review structure. Annual reviews might be the best as one single factor such as a change in taxation or legal update might alter the scope and efficiency. Remember that Wills are just one element of estate planning – an annual review of your overall estate planning can cover many aspects, one of which may be very important at a specific time. Think of ensuring your Will is fully up to date and in the best form and structure you can make it now. But also, that the process is an ongoing one involving regular review – and this will give you peace of mind and comfort that you are doing yourself and your family justice in planning effectively for them.
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.