What is a Will?
A Will is a crucial document that lays out your wishes for how your assets should be handled after your death. It can determine who inherits your property, who will care for your children, and ensure that your estate is distributed the way you would like it to be.
Without a Will, these important decisions could be made by the Courts, who may not make the decisions you would have liked. Creating a Will, particularly with the help of experienced Solicitors, can save your loved one’s time, money, and emotional distress.
The benefits of using a Will
It’s often misunderstood that Wills aren’t just for the wealthy. Anyone who has assets or dependents should have one. A Will clarifies how your estate should be managed, making it easier for your loved ones to manage it. It also helps to:
- Ensure the right people receive your assets.
- Avoid your property going to unintended recipients.
- Designate guardians for your children, avoiding Court decisions.
- Potentially reduce estate taxes. Want help arranging and managing your Will? Get in touch with our Wills and Probate Solicitors today.
What are trusts?
Trusts manage assets like money, property, and investments, either during your lifetime or after your death. Trusts are managed by trustees, who hold the assets for your beneficiaries. There are different types of trusts, including:
- Interest in possession trusts – This is where beneficiaries are entitled to trust income.
- Discretionary trusts – This allows trustees to decide how to use the trust assets.
- Bare trusts – This is where beneficiaries have an immediate right to the assets.
- Mixed trusts - This is where multiple types of trusts are used within a single arrangement. For example, some assets in a mixed trust may be set under an interest in possession trust and others may be put under a discretionary trust.
- Settlor-interested trusts - This is where the settlor has kept some or all of the benefits of the property given away in the trust.
The benefits of a trust
Trusts can protect family assets and ensure your estate is distributed according to your wishes. They are particularly helpful when:
- Passing on assets to beneficiaries who are minors or otherwise unable to manage them.
- Protecting your assets from being misused or mismanaged.
- Providing flexibility in how and when your assets are distributed.
For further support and advice on setting up and managing a trust, contact our Trust Solicitors today.
What is an estate and how are they managed?
An estate is the total net worth of an individual, made up of everything they own. After someone dies, their estate is managed by a personal representative who handles all legal, financial, and tax obligations.
Estates can be subject to taxes, particularly if income is generated during the estate management process, such as through dividends or property sales.
The benefits of estate planning
There are a range of benefits to estate planning, including:
- It allows you to keep your loved ones financially secure, while avoiding the lengthy legal processes and costs that accompany sorting an individual's assets without estate planning taking place.
- It helps to reduce Inheritance Tax, ensuring as much of your estate as possible goes to your beneficiaries.
- It ensures that all important matters are handled in the way you want them to be. This includes your finances and appointing a power of attorney if your health declines so that you are properly taken care of.
- A well-structured estate gives little room for disagreements among beneficiaries, in theory helping to avoid disagreements and strained relationships.
For further information and advice regarding planning your estate, contact our Estate Planning Solicitors today.
