Estate Planning and Wills | Ensuring Your Legacy

In the complex landscape of estate planning, wills are foundational documents that articulate your wishes regarding the distribution of your assets and the care of any dependents after your passing. At Continuum Wealth, we provide comprehensive guidance on integrating wills into your estate plans, ensuring clarity and peace of mind for you and your loved ones. While we don't draft wills ourselves, we collaborate with attorney that do wills to provide a comprehensive solution.

Estate Planning and Wills

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Understanding Wills and Their Importance

A will, or a last will and testament, is a legal document that specifies how your assets should be distributed, who should manage the estate (the executor), and who will take care of minor children (if applicable) upon your death. Wills are crucial for preventing the state's default rules (intestacy laws) from determining these aspects of your estate.

What Happens If You Die Without a Will?

Dying without a will, known as dying intestate, means your estate will be distributed according to statutory formulas, which may not reflect your personal wishes. This often leads to complications, delays in the probate process, and potentially unwanted tax consequences.

The Role of Wills in Estate and Tax Planning

Having a properly drafted will can significantly influence how your estate is distributed and can help minimise the inheritance tax burden. Strategic use of wills can include the creation of trusts within the will (testamentary trusts), which can offer tax benefits such as reducing inheritance tax liabilities through a discretionary will trust.

Creating and Implementing a Will

Drafting a will involves several key steps:

Determining the Contents: Decide what assets you have, how they should be distributed, and who should be responsible for managing the process.

Legal Requirements: Ensure the will meets all legal requirements to be valid, such as being in writing and witnessed correctly.

Power of Attorney and Will Coordination: Consider how your will and any power of attorney documents work together, particularly concerning end-of-life decisions.

Changing and Updating Your Will

A will can and should be updated whenever significant life events occur, such as marriage, the birth of a child, or a change in financial circumstances. Changing a will typically requires either an amendment called a codicil or creating a completely new will.

Probate and Wills

Probate is the legal process through which a will is validated by the courts. The question, "If you have a will do you need probate?" is common, and the answer is typically yes, although the process can be more straightforward if the will is clear and uncontested.

Cost and Considerations for Wills

The cost of will and testament creation can vary widely depending on complexity. At Continuum Wealth, we help you understand the potential costs and guide you in making a will that provides maximum benefit for your estate planning goals.

Special Considerations

Trust and Will: Incorporating trusts within a will for specific purposes, like caring for a child with special needs or managing a business asset, can be effective.

Contesting a Will: Understanding the grounds on which a will can be contested and planning accordingly to minimise such risks.

What to Do When Someone Dies: A Step-by-Step Guide

  1. Register the Death: Officially register the death within 5 days (8 days in Scotland).
  2. Tell Government About the Death: Use the Tell Us Once service to report the death.
  3. Arrange the Funeral: Plan the funeral based on the deceased's wishes or family preferences.
  4. Check Bereavement Benefits: Manage changes to benefits, pensions, taxes, and seek bereavement support. Check immigration status if applicable.
  5. Value the Estate and Check Inheritance Tax: Determine if Inheritance Tax is due by valuing the estate.
  6. Apply for Probate: Legal process for estate administration. Executors named in the will should apply for a Grant of Probate. 
  7. Deal with the Estate: Distribute the estate according to the will or intestacy rules.

At Continuum Wealth, we understand the importance of having a well-structured will as part of your estate planning. Whether you are drafting your first will or updating an existing one, our guidance ensures that your estate is planned with precision, fulfilling your wishes and maximising the benefits for your heirs.

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Estate Planning and Wills FAQs

Yes, a will can be contested. Common grounds for contesting a will include claims of lack of mental capacity, undue influence, fraud, or if the will was not properly executed. Proper planning and legal advice can help minimise the risk of disputes.

While Continuum Wealth does not draft wills directly, we provide comprehensive guidance on integrating wills into your estate planning. We collaborate with experienced solicitors to ensure your will is properly drafted and aligns with your overall financial strategy.

Feel free to reach out to Continuum Wealth for expert advice on creating or updating your will. Our goal is to ensure that your estate plan is thorough, legally sound, and reflective of your personal wishes, providing peace of mind for you and your loved ones.

Yes, you can update or change your will at any time. This can be done through a codicil, which is an amendment to your existing will, or by creating a new will. It is important to review and update your will after significant life events such as marriage, the birth of a child, or changes in financial circumstances.

Wills and powers of attorney are complementary documents in estate planning. While a will outlines how your estate should be handled after your death, a power of attorney grants someone authority to manage your affairs during your lifetime if you become incapacitated. Coordinating these documents ensures comprehensive planning for both scenarios.

A well-structured will can help minimise inheritance tax liabilities. This can be achieved through the strategic use of testamentary trusts, which can provide tax benefits and reduce the overall tax burden on your estate.

The cost of creating a will can vary depending on its complexity. Simple wills are generally less expensive, while more complex wills involving multiple trusts or detailed provisions may cost more. It is advisable to seek professional guidance to ensure your will is comprehensive and legally sound.

For a will to be valid in the UK, it must:

  • Be in writing.
  • Be signed by you in the presence of two witnesses.
  • Be signed by the witnesses in your presence.
  • You must have the mental capacity to make the will and understand its implications.

If you die without a will, known as dying intestate, your estate will be distributed according to statutory formulas, which may not reflect your personal wishes. This can lead to complications, delays in the probate process, and potentially unwanted tax consequences.

A testamentary trust is a trust created within a will that comes into effect upon your death. It can provide for specific purposes, such as caring for a child with special needs or managing business assets. Testamentary trusts can also help in reducing inheritance tax liabilities by controlling how and when beneficiaries receive their inheritance.

A will, or last will and testament, is a legal document that specifies how your assets should be distributed, who should manage your estate (the executor), and who will care for your minor children (if applicable) upon your death. It is crucial for ensuring that your wishes are followed and that your loved ones are provided for according to your intentions.

An executor is a person named in your will who is responsible for managing your estate according to your wishes. This includes valuing the estate, paying any debts and taxes, and distributing the remaining assets to the beneficiaries. It is important to choose a trustworthy and capable executor.

Your will should include:

  • A list of your assets.
  • Instructions on how your assets should be distributed.
  • The name of your executor.
  • The name of a guardian for any minor children.
  • Any specific wishes for your funeral or other personal matters.

 

Note: This page is for information purposes only and should not be considered as financial advice. Always consult an Independent Financial Adviser for personalised financial advice tailored to your individual circumstances.