Frequently Asked Questions

Wills & Will Trusts FAQ

Dying intestate means you haven’t left a will, and in this case, the law steps in to determine how your assets are distributed. Unfortunately, these outdated laws often overlook modern family structures, like unmarried partners and stepchildren, which could lead to unintended outcomes. For instance, your partner may not inherit anything if you aren’t legally married. Additionally, if you have children under 18 (or 16 in Scotland), the court could decide their guardianship, which may not align with your wishes. To protect your loved ones and ensure your intentions are fulfilled, creating a will is essential.

A trust is a legal mechanism that allows you to manage your assets for the benefit of others. It can help you maintain control over your estate, potentially reduce inheritance tax, and provide for your family after you’re gone. Whether you need a trust depends on your unique situation, such as the complexity of your estate and your family dynamics. Consulting with our estate planning experts can help you assess whether a trust is the right choice for you.

Updating a will is generally a straightforward process, but costs can vary based on your specific needs. Simple updates might range from £50 to £300, while more complex changes could incur higher fees. At Legatum Planning, we believe in transparency, so we’ll provide you with clear pricing upfront to help you make informed decisions.

Deciding who inherits your estate is a deeply personal choice. Here are a few key considerations:

  • Family ties: Who do you wish to support?
  • Dependents: Ensure that those relying on you, like children or partners, are cared for.
  • Sentimental value: Think about specific items you’d like to leave to certain individuals.

It’s wise to document your decisions clearly in your will, and our team can assist you in making these important choices.

An executor is the individual responsible for ensuring that your wishes, as outlined in your will, are carried out. When selecting an executor, consider someone trustworthy and capable of managing financial and legal matters. You can name your chosen executor directly in your will. It’s also a good idea to discuss the role with them beforehand to ensure they’re comfortable with the responsibility.

Yes, a will is a legally binding document if it meets certain requirements.

  • Written Document: Must be in writing.
  • Age Requirement: The testator must be at least 18 years old.
  • Voluntary Creation: Created voluntarily, without coercion.
  • Signature: Signed by the testator, or someone signing on their behalf in their presence.
  • Witnesses: At least two witnesses who are not beneficiaries must sign to validate the will.

Meeting these criteria ensures the will is enforceable and can help prevent disputes. It’s recommended to consult with an estate planning professional to ensure compliance with the law.

In the UK, the inheritance tax threshold is currently set at £325,000. Any value above this may be taxed at 40%. However, there are various exemptions and reliefs, such as the main residence nil-rate band, which can significantly increase your tax-free allowance if you pass your home to direct descendants. Our estate planning specialists can guide you through your specific tax obligations and discuss strategies to minimise your inheritance tax liability.

Lasting Power of Attorney FAQ

A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint someone to make decisions on your behalf if you become unable to do so yourself due to illness or incapacity. There are two types of LPA: one for health and welfare decisions and another for property and financial affairs. This arrangement ensures that your wishes are respected, even when you can’t communicate them.

Having an LPA in place is crucial for safeguarding your interests and ensuring your preferences are upheld. Without an LPA, decisions about your care and finances may be left to the courts, which can be time-consuming and may not align with your wishes. An LPA gives you peace of mind knowing that trusted individuals can manage your affairs according to your directives.

You can choose anyone you trust to be your attorney, such as a family member, close friend, or professional advisor. However, your attorney must be over the age of 18 and should understand their responsibilities. It’s essential to select someone who will act in your best interests and follow your wishes.

Yes, you can revoke your LPA at any time while you still have the mental capacity to do so. However, it’s important to follow the proper legal process to ensure that any changes are valid. If you have concerns about your current LPA, our team can guide you through the revocation process.

If you become unable to make decisions and don’t have an LPA in place, your family may need to apply to the court to appoint a deputy to manage your affairs. This process can be lengthy, stressful, and costly, and it might not reflect your preferences. Creating an LPA ahead of time can help avoid this situation.

Creating an LPA involves completing specific forms and having them signed and witnessed. At Legatum Planning, we simplify this process for you, ensuring that your LPA is correctly drafted and compliant with legal requirements. Our team is here to provide guidance and support every step of the way.

Yes, an LPA is a legally binding document as long as it is created following the proper legal procedures. Both the donor (the person making the LPA) and the attorneys must sign the document, and it should be registered with the Office of the Public Guardian (OPG) to be effective.

The cost of setting up an LPA can vary depending on the complexity of your needs and whether you choose to seek professional assistance. At Legatum Planning, we offer transparent pricing with no hidden fees, ensuring you understand the costs involved before proceeding.