Later Life Legal Services Limited

Estate Planning

Estate planning is a series of financial and legal strategies designed to manage an individual's assets throughout their lifetime and ensure the smooth transfer of those assets after their death. The goal is to create a well-considered plan that minimises tax obligations, protects wealth, and ensures that assets are distributed according to the individual's wishes.

It is essential to regularly review and update the estate plan to reflect changes in personal circumstances, tax laws, and financial objectives. It is highly recommended to seek professional advice to navigate the complexities of estate planning effectively in England & Wales.

Will Planning

A will is a legal document that explains how you want your assets to be distributed after you pass away. It appoints an executor who is responsible for managing your estate, paying debts and distributing assets according to the will's terms. 

Clearly specifying beneficiaries and the assets they are entitled to can help to avoid confusion and potential disputes.

Trusts

A trust is a legal arrangement where assets are held by trustees for the benefit of specific individuals or purposes. Types of trusts include:

Discretionary Trusts: Trustees have discretion over how and when to distribute assets to beneficiaries.

Life Interest Trusts: Beneficiaries receive income from the trust during their lifetime, with the capital passing to other beneficiaries later.

Trusts can be effective for protecting assets, providing for vulnerable beneficiaries, and managing complex family situations.

Lasting Power of Attorney

An LPA, which stands for Lasting Power of Attorney, is a legal document that gives someone the power to make important decisions on your behalf. There are two main types of LPA:

1. Financial PoA - This type of LPA gives the person you choose the authority to manage your financial affairs, including your property and investments.

2. Health and Welfare PoA - This type of LPA gives the person you choose the authority to make decisions about your health and well-being, including medical treatments.

Having an LPA in place is important because it ensures that someone you trust can manage your affairs if you become unable to do so. This can be especially important if you are ill or injured and unable to make decisions for yourself. By creating an LPA, you can have peace of mind knowing that your affairs will be taken care of by someone you trust.

Tax Planning

Inheritance Tax (IHT) is a tax that is levied on the property, money, and possessions of someone who has passed away. To plan effectively for this tax, it is essential to understand IHT thresholds, exemptions, and reliefs. 

Some strategies that can be employed include lifetime gifting of assets, utilising the Nil-Rate Band and Residence Nil-Rate Band allowances to minimise tax liabilities, and taking advantage of Business and Agricultural Relief to reduce the taxable value of certain assets.

Your Home

Most individuals who share homeownership with another party typically hold the title as Joint Owners. This means they each possess complete ownership of the property. Upon the passing of one Joint Owner, the real estate automatically transfers in full to the surviving individual. Subsequently, this person has the liberty to manage the property as they see fit. However, this situation can lead to complications. For instance:

Should the surviving partner decide to remarry, the entirety of the house could transfer to their new spouse upon their demise, potentially dispossessing the children from the first marriage.

Additional issues may arise if the surviving partner requires admission into a Nursing or Residential Home. Being the sole proprietor of the residence, the Local Authority is authorised to levy care costs against the full value of the house. Consequently, this may result in the children being deprived of their inheritance once more.