Planning your estate may feel daunting and is certainly not one quick task. While there are ways to reduce the complexity of estate planning, it is important to understand that various elements are involved.
In this blog, we break down estate planning steps with tips on making the process as hassle-free as possible.
What is an Estate?
Your estate includes all tangible possessions, all investments and interests. It is the total of everything you leave behind once you pass away. This includes property, investments, savings, pensions, cars, antiques, valuable collections such as records and art and anything else of monetary or sentimental value.
Value Your Estate
House prices and interest rates are constantly changing, so it is important to obtain a realistic valuation for any property and other assets you have. Inheritance tax for anyone who isn’t a spouse is currently 40% of anything over £325,000, which should be considered when assessing your estate.
Write a Will
Every adult should make a will, although it is thought more than half of UK adults do not have one. Making a will ensures your estate is distributed correctly as per your wishes. The intestacy rules apply if you die without a legally binding will. Work with a professional will writing service, such as Canterbury Wills, to create a bespoke and legally binding will. Everyone’s wishes regarding their assets will differ, and it is important to make a will and update it every few years or after significant life events. This includes marriages, deaths and births.
Things to Consider When Writing a Will
- If you have young children, you can appoint a guardian.
- Do you have a funeral plan? Many people prefer what type of funeral they want (cremation, burial, everyone wears colour etc.)
- How are you distributing your estate?
- Are there special things you want to note that people may not see as valuable? (letters, photos etc.)
- Do you want to leave a sum to charity?
Setting up a Trust
Some people choose to set up a trust. This allows you to move assets from your estate into the trust to generate an income for appointed beneficiaries while protecting the assets for your next generation.
Lasting Powers of Attorney
An LPA lets you nominate trusted attorneys (family or friends) to manage your financial affairs if you were to lose capacity. There are two types of LPA, Property and Financial Affairs and Health and Welfare.
For professional will writing help, contact Canterbury Wills on 01227 616126.