Things to consider when making a will
Building the jigsaw
These are all sensible things to weigh up. But it’s worth remembering that financial choices are only part of the picture.
A recent article in the Times raised exactly this matter – where a couple in their 80s were considering what to do with a £300,000 payout, especially as their life expectancy was thought to be about another 5 years or so.
It got me thinking. Yes, it can be difficult to predict life expectancy and you don’t want to run out of money, but at the same time, you need to be protecting it to help loved ones in future – whether that is to pay for your care or how your estate will be divided after you pass away.
Having a will is vital
If you die without a will this is called dying “intestate”. In the UK that means the state gets to decide who inherits your estate and that may not match your wishes.
Stepchildren, for instance, have no automatic rights under the law and unmarried partners are often left out entirely. Having a will gives you control as it means you can choose exactly who receives what from your estate and appoint executors you trust to handle your affairs for you.
Only around 40% of people in the UK have a will and it is really important – it’s even more vital if you’ve just received a windfall, and, if you already have a will, reviewing or updating it is one of the most important steps you can take.
Consider an LPA
To really protect yourself and your loved ones, as well as a will you should also have a Lasting Powers of Attorney document (LPA) in place. According to latest figures from the Office of the Public Guardian (OPG), while the uptake in wills is low at around 40%, LPAs are even lower – with just 1% of the adult population having one in the UK (source: https://assets.publishing.service.gov.uk/media/5a7e15b6ed915d74e33eff4d/opg-lpa-infographic.pdf)
A will protects your wishes after you die, but LPAs come into play while you’re still alive.
An LPA allows you to nominate someone you trust to step in if you lose the ability to make decisions for yourself. There are two types. One covering property and finances – things like paying bills, managing investments, or selling property – and another for health and welfare, which includes decisions about treatment and care.
Without an LPA in place, your family would have to apply to the Court of Protection for permission to act, which is costly, stressful and slow. In some instances, families have reported a 20+ week wait (link to: https://www.downslaw.co.uk/blog/did-you-know-there-is-a-20-week-wait-to-register-a-lasting-power-of-attorney/) to access bank accounts or make medical decisions on behalf of their loved ones – which can feel painfully long if you need to make decisions quickly.
A windfall is an opportunity – not just to think about pounds and pence, but to put your affairs in order so your wealth is protected, used wisely in your lifetime and passed on smoothly afterwards.
It’s never too late to take advice and Downs Solicitors can help. Contact us to find out more information.
Contact Liz Dalgetty
