WHAT IS PEACE OF MIND WORTH TO YOU?
Dying intestate (without a valid will) causes problems for those that are left behind. Most people wrongly assume that their house and savings will go to their spouse but that is not necessarily true. The courts use a complex procedure to determine inheritance in these cases.
27 million people in this country do not have a will at all. Many more do not have a valid will for a whole variety of reasons, usually because it was made a long time ago and, although this alone does not invalidate it, circumstances may often have changed. For instance, the named executor has died or a divorce and re-marriage has taken place. A will should be reviewed, though not necessarily changed, every five years.
There are another large group of people who have made a will but it is not efficient. Many basic wills leave people vulnerable to inheritance tax. Unmarried couples are particularly at risk after last year’s changes to the threshold arrangements for Inheritance Tax payment. ‘Common Law’ partnerships have no validity in matters of inheritance.
Approximately 1 in 4 people in this country will require formal care at some time in their lives. To fund this care they may have to sell their home. A staggering 70,000 homes are sold each year to fund long term care, that’s nearly 200 every day! Potentially, as little as £13,500 could pass to the children and out of that they would still have to fund the funeral……….. Probably not exactly what they would have hoped for.
It is possible to cushion the impact of this by setting up a Property Protection Trust ensuring that as much as possible of he estate that has been hard earned over a lifetime is passed on to the designated beneficiaries. The simple step of changing property ownership from joint to Tenants in Common makes such protection possible by facilitating the writing of a trust to protect the deceased’s share of the estate on the death of the first partner. Other trusts can be used to provide for dependent relatives or pets; lessen the impact of Inheritance Tax or give relatives the right to reside in a property after the owner’s death. A completely free, no obligation talk with a trained consultant will help you to choose the options that are available to you.
The Department of Health estimates that as many as 2 million people in England and Wales lack the mental capacity to make decisions for themselves. They are looked after by 6 million carers – including professionals, relatives and friends. A lack of capacity could be because of a learning disability, dementia, mental health problems, a brain injury, a stroke or unconsciousness due to an anaesthetic or a sudden accident.
The Mental Capacity Act, brought fully into force on 1st October 2007, safeguards the interests of people who may lack capacity to make decisions for themselves, now or in the future. More than seven in ten (71%) people
say that they have a view about who they would or would not like to take care of their affairs if they could no longer make their own decisions yet only 4% have made provision for powers of attorney in the case of that eventuality. Three in five (59%) of those aged 65 and over have not made preparations for how they themselves and their finances would be looked after should they become unable to do so themselves, because of age related illness (These figures are taken from the report, Empowering You, published by the Office of the Public Guardian in September 2007). The Mental Capacity Act ensures that those given powers of attorney are legally bound to make decisions in the best interests of the person lacking capacity and the act includes safeguards to ensure that the attorney does just that.
Have you got a will? Does it protect your property, your other assets, and your children? Have you prepared power of attorney in case of mental incapacity? If you want to discuss these matters further with a trained professional specializing in such legal matters contact your local Collective Legal Solutions consultant, David Cowley (01424 854561 or 07967 159376) or Rita Monk on (01424 465267) for a free no obligation consultation in your own home, or in hospital or your care home, at a time of your choosing.
PEACE OF MIND COSTS LESS THAN YOU THINK AND CAN BE EASY TO ACHIEVE.
