Author Archives: Helen Eynon

What are Lasting Powers of Attorney?

This is a common question, as attorneyships have been around for many years. Until 2007 you could appoint attorneys under an Enduring Power of Attorney.

Lasting Powers of Attorney (LPAs) were created in the 2005 Mental Capacity Act. Rather than have one document to cover everything (as with Enduring Powers of Attorney). The duties and responsibilities of attorneys were split into 2.

Welfare LPAs
This document appoints attorneys to deal specifically with an individual’s long term care needs. The most important element of this document is that a donor (giver of the power) can appoint an attorney/s to make decisions regarding medical treatment.

Property & Affairs LPAs
This document appoints attorneys to deal with an individual’s financial affairs. This includes the donor’s property, bank accounts, shares etc. The idea being that the donor is appointing people he/she trusts to make any necessary long-term financial decisions on his/her behalf.

As to whether one or both types of LPAs are needed depends on a client’s own specific set of circumstances. It’s therefore important that professional advice is obtained when you are considering putting a Lasting Power of Attorney in place.

Wills – Avoiding the Scams!!

Having read the Guardian on 17th April 2011, it appears that the Law Society has again highlighted the problems of what it terms “unregulated” Will Writers.

In the article examples were given of basic errors in drafting, which caused problems after death. Whilst I know that any mistake in drafting can have serious consequences. It should be understood that this can happen even if such documents are drawn up by a solicitor.

With news stories reporting that some companies are offering very cheap Wills, and others apparently ripping people off. The worry is the public will be put off doing Wills at all!

As a person with years of experience, having worked as both a solicitor and a professional Will Writer. It’s important that you are NOT put off writing a Will by a few stories of where it has gone wrong.

There are 3 simple steps to take to ensure that the person you use is a Will Writing professional.

• Only choose someone who is a member of either the Society of Will Writers or the Institute of Will Writers. Membership can be checked on these organisation’s websites.

• If you choose a member of one of the above organisations, the person will be fully insured. This means you are protected.

• Ask for a written quotation after any meeting. You have a cooling off period if you do not want to go ahead.

My final tip is that of common sense. If something sounds too good to be true in any walk of life, it probably is. If on receiving a quotation which is very low, avoid using that Will Writer.

Likewise if a quote sounds very high, ask for a full explanation as to why the costs are such. If complex trusts are required in your case you should be prepared to pay for proper professional work. All good Will Writers will be able to confirm exactly how the fees are calculated. If the fees still appear very high walk away!

Wills – what’s stopping you from putting one in place?

Over the years many clients have confirmed to me that there are many reasons why they haven’t got around to doing a Will.

Some common reasons are:
• My situation is complicated, and I can’t see how a Will can cover my particular set of circumstances!
• There are some family possessions that I want to give to various people.
• I really don’t know who to give my possessions to.
• I can’t do a Will as I might have more children.
• I can’t do a Will as I might have more grandchildren.
• I am no longer speaking to a family member.
• I don’t know who to appoint as my Executors.
• I don’t have any children so why should I bother?
• Finally the most often used reason is – I don’t have the time!

All these points can be covered in a Will. With the average Will instruction taking just an hour, there really is no excuse. There is a solution to all of the above issues. So now what is stopping you?

Will Drafting

Why you should get professional advice!

The Heir Hunters programme shown on the 25th March 2011, has unfortunately illustrated why you should ONLY get your Will drafted by a professional.

The case that was highlighted related to a person who intended to write a Will, and had a Will put in place with the assistance of a firm of accountants. All the intended beneficiaries of this Will, were under the impression, along with the Testator, that all was in order.

When the Testator died, it became apparent that the Will had not been executed correctly. This meant that the Will was invalid and so the Estate was Intestate.

The result was that the “family” who had been the intended beneficiaries did not receive the Estate. Those who did benefit were unknown to the deceased, which caused immense upset and distress to the deceased’s family.

This evidently was a clear case of negligence. However, as the firm with whom the document had been drawn up no longer existed. It is unlikely that the disappointed beneficiaries will be able to seek re-dress.

This situation demonstrates why you should only use a professional Will Writer. More importantly if you use a member of a professional body they will have full Indemnity Insurance. So if something goes wrong you and your intended beneficiaries are protected!

The Budget 2011 and Inheritance Tax

A Boost to Charity! Who thought Giving could be so Good!

If you have always thought that giving away money to charity in your Will is a good idea. Now there is an added incentive.

Up to now any gift you made in your Will to a registered charity was “exempt” from Inheritance Tax. This meant that any money given to charity through your Will was “taken out” of the equation when calculating the tax due on your Estate assets.

The charity would get their entitlement tax free. If any Inheritance Tax was due this would be bourne by the percentage of your Estate that was to go to “non-exempt” beneficiaries (for example your children).

Now following the 2011 Budget if you give 10% or more of your Estate to charity, the tax that is due on your Estate will be 36% (down from the usual 40%). In other words your Estate’s tax bill will be reduced!

Whilst it is not clear at this time what the finer details will be, and when the changes to the Inheritance Tax Forms will come in. There is now a clear incentive for you to leave a percentage of your Estate to charity. Such a gift will of course benefit charity, but more importantly will mean your family receives more.

To ensure that you come within the new rules, your current Wills should be reviewed. With more going to your family, and more to charity this is a win win situation!

Updating Wills – To Codicil or Not To Codicil Is the Question!

Codicils – The Pitfalls

As I am sure everyone knows it’s important to keep your Will provision up to date. This can mean either re-writing your Will, or making a Codicil.

If you only want to make a small change to your Will, this can be done by putting a Codicil in place. Please note that then the Codicil will be read with your Will, and it’s effect is that it becomes part of the Will.

Codicils are put in place for many reasons for example a Codicil can:

• Add in an additional clause
• Take out a  clause
• Change your Executors or add to them
• Monetary amounts can be changed up or down
• Additional people can be added

When making a change via Codicil it is essential that you do the following:

• Only use a Codicil if the change is minor
• Don’t keep making Codicils, as having too many Codicils (which have to be read with your original Will) can be difficult to read and complicated to administer
• Ensure that you keep the Codicil and Will together

Some changes that appear “minor” are not. Typically it might seem easy to in effect “take someone out” of a Will. If that person however is mentioned throughout the Will, the Will must be re-written.

Each case is different, and it also depends on how the Will is written as to how easy it is to write a Codicil to it!

Don’t go on Holiday without a Will in place!

The Holiday Season is Coming: Time to get your Will in order!!

Next month is Easter, and with the Royal wedding and additional bank holiday many people are going away this Easter.

Most of us book our holidays weeks if not months before we go. We get organised to ensure we have the holiday we want, went we want it, where we want it.

We book the cats in, arrange to have the plants watered, sort out the flights and accommodation.

But one thing that many people do is go on holiday without having a valid Will in place first!

Every year I have clients coming last minute to put their Wills in place. Rather than wait to the last minute, why don’t you sort them out now? Call me to arrange a time when I can go through your instructions well before you fly!

Wills: What is an Executor?

No question is a stupid question and this one is important when you are thinking about putting a Will in place!

An Executor is a person who is appointed in your Will to deal with your Estate. It is therefore one of the most important decisions you will ever make. Usually it is a good idea to appoint someone you trust, and always (if possible) appoint at least 2 people to act.

Your Executors must cash in your assets before they can give the proceeds to your family, as stated in your Will. This means cashing in bank accounts, selling or transferring shares and arranging the sale of your house.

Your Executors must ensure that all debts are paid on your death. As unfortunately debts do not die with you! This includes the costs of your funeral, the discharge of mortgages and the repayment of any loans that are outstanding.

Once all the debts have been paid, the Executors can then make payment out to your family and friends as specified in your Will.

On death it is essential that you have appointed people who will do a good job. I usually suggest you appoint family members. Don’t forget that your Executors are free to seek assistance in dealing with your Estate.

If you want further advice about putting a Will in place, or you are an Executor dealing with someone’s Estate. Just call for a no obligation chat.

 What is an Executor?

No question is a stupid question and this one is important when you are thinking about putting a Will in place!

An Executor is a person who is appointed in your Will to deal with your Estate. It is therefore one of the most important decisions you will ever make. Usually it is a good idea to appoint someone you trust, and always (if possible) appoint at least 2 people to act.

Your Executors must cash in your assets before they can give the proceeds to your family, as stated in your Will. This means cashing in bank accounts, selling or transferring shares and arranging the sale of your house.

Your Executors must ensure that all debts are paid on your death. As unfortunately debts do not die with you! This includes the costs of your funeral, the discharge of mortgages and the repayment of any loans that are outstanding.

Once all the debts have been paid, the Executors can then make payment out to your family and friends as specified in your Will.

On death it is essential that you have appointed people who will do a good job. I usually suggest you appoint family members. Don’t forget that your Executors are free to seek assistance in dealing with your Estate.

If you want further advice about putting a Will in place, or you are an Executor dealing with someone’s estate. Just call for a no obligation chat.

Wills – The Second Marriage Dilemma

If you are about to get married for the first time, good luck and good wishes. I hope you are putting a Will in place as your status is about to change.

If you have been married before, you should think very carefully about your Will provision. The straight forward “Mirror Image Will”, where you leave everything to each other is NOT for you!

When it comes to a second or even a third marriage, many things would have happened to you during your life. You would hopefully have your own property and savings. You would have built up your assets years before you met your new wife/husband.

By the time of a second marriage you may have inherited money from your own family.

So you want to preserve your assets for your own children, or ensure that the “family” assets go down the blood line to your family! This sounds logical and easy, however it is not.

When putting in place a Will you must take into account your means, the financial position of your new wife/husband, and most importantly you must protect your existing family.

With the use of Trusts everyone can be protected, and whilst you cannot take it with you. You can ensure that those you love are looked after.

If you are one of those embarking on a new life with a new wife, please call to discuss how to best protect your loved ones.

Wills & Guardianship

Why young couples should make Wills

This is one of the most contentious issues for young couples.

If a decision is NOT made this can lead to:

• Disagreements between surviving relatives – with no appointment no-one in the family knows who should care for the children. With no clear wishes arguments can ensure between the different sides of the family
• Splitting up of siblings – in many cases with people not marrying, or marrying more than once children may not have the same mother/father. If no guardians have been appointed, children could be split-up to live with their biological mother/father.
• Children being raised in a way you would NOT want – from the way your children are educated to the religion they are brought up with.

In the worse cases when no-one can agree, and no appointment has been made it will be the Courts who ultimately decide.

In a Will a guardian can be appointed, along with a substitute appointment if something were to happen to the first person appointed.

In making a decision in your Will, you can appoint people who are not only capable of looking after your children, but will bring them up the way you would have had you been alive.