In our hectic daily lives, it can be very tempting to put off writing your Will until next year.
Facing our own mortality is never easy, but in the event of a tragic accident or debilitating illness, having an up-to-date Will or appointing trusted attorneys can make all the difference for your loved ones.
“Future planning is not a luxury, we never know when we might need the security of a Will or Lasting Power of Attorney,” explains Emily Taylor, partner at Dutton Gregory based in Winchester. “Planning for the 'worst case scenario' is never easy, but so many of our clients tell me how relieved they are once they’ve ticked these tough discussions off their list!”
We speak with Emily about the various options for later life planning, what makes them so valuable and why it's vital to review them periodically.
Q: What are the most important documents you need when planning for the future?
A: The two central aspects of secure later life planning are Wills and Lasting Powers of Attorney (LPA). Your Will is crucial to ensuring that your wishes regarding your estate are upheld once you pass away. It enshrines your decisions about who receives your assets, who will act as the executor of your estate and other key aspects such as tax and long-term care planning.
Lasting Powers of Attorney transfer the handling of your affairs to someone of your choosing if you lose mental capacity. They come in two forms:
- Property and Affairs LPA – the attorney can make decisions such as operating a bank account, buying and selling property, dealing with tax affairs and claiming benefits.
- Health and Welfare LPA – enables the attorney to make decisions about your general health and welfare, such as where you live, and giving or or refusing consent to life sustaining treatment.
However, you can only make an LPA while you have capacity to do so. If you do not and you lose capacity, the only alternative is for an interested party to apply to the Court of Protection for a Deputyship Order. This process can be expensive and time-consuming.
Q: Why do people put off creating a Will or LPA
A: It often depends on the person’s individual circumstances but there are a few common reasons. Many don’t want to have these difficult conversations with friends and family members, and hope it will be a simple process that can be done in later life. The cost is another factor that often concerns clients – in the face of more pressing issues, these preparations can be seen as luxuries.
However, the emotional and financial difficulties that arise when someone passes away without a Will, or a properly drafted Will, far exceed the initial challenges. The intestacy rules are very old-fashioned, and people don’t always realise that long-standing relationships do not fall under the same protections as marriages.
It's vital to have these discussions with your solicitor sooner rather than later to soothe any worries and enshrine your wishes into legal documentation.
Q: What makes an up-to-date Will or LPA so valuable?
A: One of the most immediate advantages is the relief that people feel once they’ve drafted a Will or LPA, plus the cost they save in the long run. My clients are often surprised at the simplicity of the process, and the peace of mind it gives them once they have completed the process.
Life can be very unpredictable, and many people don’t always realise that a Will becomes essential after purchasing a home or having their first child. Once your circumstances change or you gain assets, having a properly drafted Will may mitigate the impact of inheritance tax, and can reduce the chance of the Will being challenged in acrimonious circumstances.
During the Covid-19 pandemic, I saw a major increase in under-30s applying for LPAs. It's not just an unlikely accident or old age that can cause someone to lose capacity, contracting a widespread illness such as Covid-19 can lead to severe complications. Having an LPA in place as early as possible removes much of the anxiety regarding your financial and health-related situations.
Q: How often would you recommend a review of these documents?
A: I usually recommend a review every three to five years, or when circumstances change. Legislation regarding inheritance tax and other issues may change within that time without your knowledge, and your Will or LPA can be amended or redrafted accordingly.
Wills that are not prepared by legal professionals may be subject to successful challenges, so if you have a Will that has not been updated for some time, it would be well worth checking it. Solicitors can advise you on key legislation and empower you to make your own choices while you can.
For more information about drafting a Will or LPA, visit duttongregory.co.uk or call 01962 863582.
