The Importance of Planning in Advance: Wills, LPA’s and Trusts
Death may be a part of life, but it is still hard to deal with for the people left behind. Without the right plans in place, it can be much more difficult for your loved ones when you pass on. By taking the time now to plan for any eventualities, like setting up a will, an LPA, and trust funds in UK, you can ensure your last wishes are met and save your loved ones the stress while in mourning.
Despite being such an important legal document, as of 2018, 54% of adults in the UK did not have a will. Wills are one of the most well-known legal aspects of death. When a will is drawn up, preferably with the help of a specialist, it is the final say of the deceased and their last wishes. You can put just about anything in your last will and testament. In fact, a recent study shows that 11% of people in the UK put their internet passwords in their will. But there is more to it than a list of assets and beneficiaries. Here are the different types of wills and how to plan for them.
A standard will is what everyone probably thinks of when they think of them. These legal documents lay out a person’s last wishes for their property. In them, you can decide how your property, assets, children, and even pets will be distributed and cared for in the case of your death. This includes wills and estate planning. You can put just about anything in your last will and testament. In fact, a recent study shows that 11% of people in the UK put their internet passwords in their will.
Mirror wills are an excellent idea for couples. They are essentially wills that mirror one another. In the case of a Mirror Will, each person leaves their belongings to the other in the event of their death. The wills are identical, with the only exception being the name of the person on the will. If either partner has a different wish that they want in the will, then a Mirror Will is not the ideal document.
No will should not be a viable option because the deceased has no say in what happens with their assets and where they go. The law would decide how assets, such as property, money, and possessions are distributed. Your will should be kept updated on a regular basis but particularly in situations where major life events, such as birth and death, occur. The cost of updating a will in UK is nothing compared to the problems an outdated will can cause.
There is a common misconception that, in your will, you can assign someone to make your medical decisions in the event of incapacitation. However, that is not true because a will only becomes ‘active’ once someone dies. This is where an LPA’s, or Lasting Power of Attorney, comes in and provides for a situation where you need someone to act on your behalf while you are alive in the event of mental or physical incapacitation. It is a document that appoints one or more people that can help you or make decisions on your behalf. There are two different types of LPAs.
- Health and welfare – this LPA handles things that involve daily life, medical care, and treatment that affect your health and wellbeing.
- Financial and property affairs – this LPA is for money management, paying bills, and selling property.
You can have one person handle both LPA, or you can appoint a different person for each one. When assigning an LPA, you have to be over the age of 18 and have the mental capacity to assign someone.
Trusts and Trust Funds in UK
The media has shown over the years that trusts are for rich people, but that’s not true at all. Trust funds in the UK can be set up by anyone and are a great way to protect your assets and provide future security for your loved ones and yourself.
One major difference between a trust and a will is that if you have a will in place and marry, it automatically cancels. However, trusts do not work that way.
Trusts can seem complicated, and there are a few different types of trusts. The common component of all trusts is:
- Trustee(s) – These are the people that control the money or assets
- Trust Property – This is the money or assets
- Beneficiaries – These are the people that benefit from the trust.
To avoid becoming overwhelmed by the details of trust funds in the UK, such as the best UK investment trust or whether the trustee needs to complete a tax return, you should have a solicitor help you. They can help you set up the trust in a way that will provide for yourself and your family in the future.
Planning for the future should not be more terrifying than what comes after. We at Trustmark Law can help you figure out how to plan for the future. This includes, but is not limited to, your will and the cost of updating a will in UK, LPA, Trust and the best UK investment trusts, and any trust funds in the UK. Wills and estate planning are too important to be trusted with just anyone. You want someone with experience and knowledge that can work for you. Contact us today to help with all of your last wishes.