Estate planning is something every family should think about, not just people with large amounts of money.
For families in Buckinghamshire, having a clear estate plan can help make sure your wishes are understood, your loved ones know what to do and important decisions can still be made if you become unable to make them yourself.
Whether you live in Aylesbury, High Wycombe, Milton Keynes, Amersham, Beaconsfield, Buckingham or elsewhere in Buckinghamshire, the basic areas of estate planning are broadly the same, although everyone’s circumstances are different.
What Is Estate Planning?
Estate planning involves making arrangements for your money, property and other assets during your lifetime and after your death.
It can include:
- Making or updating a Will
- Choosing executors
- Arranging Lasting Powers of Attorney
- Considering whether a trust is appropriate
- Understanding potential Inheritance Tax
- Planning what happens to your home
- Protecting the interests of children or vulnerable relatives
- Organising important financial and legal information
- Understanding what happens when your estate needs to go through probate
Good estate planning is not simply about deciding who receives your money. It is also about making important decisions before your family has to make them for you.
Why Should Buckinghamshire Families Plan Ahead?
Many people delay estate planning because they believe they have plenty of time.
However, circumstances can change unexpectedly.
You may become seriously ill, lose the ability to manage your finances or die without having made your wishes clear.
A valid Will can help determine how your estate should be distributed after death. If someone dies without a valid Will, the intestacy rules determine who may inherit.
Estate planning can therefore give families greater certainty and reduce some of the difficulties that can arise when important arrangements have not been made.
Making or Updating Your Will
For most families, a Will is an important starting point.
Your Will can name the people you want to inherit your estate and appoint executors to deal with your affairs after your death.
It can also be used to set out arrangements concerning children and other beneficiaries where appropriate.
You should consider reviewing your Will after major life changes, such as marriage, divorce, having children, buying a property or experiencing significant changes in your finances.
It is also important that your Will is correctly signed and witnessed. GOV.UK provides guidance on making a Will and recommends professional advice for more complicated circumstances.
Lasting Powers of Attorney
Estate planning should not only focus on what happens after you die.
You should also think about what would happen if you were still alive but unable to make decisions yourself.
A Lasting Power of Attorney (LPA) allows you to appoint people you trust to make decisions on your behalf.
There are two main types:
Property and financial affairs LPA can cover decisions involving money, bank accounts, bills, pensions and property.
Health and welfare LPA can cover decisions about healthcare, daily care and where you live.
You generally need to have mental capacity when making an LPA, which is why leaving this decision until a crisis can be risky.
Search in Your County
Looking for professional estate planning help in Buckinghamshire?
Trusted Lawyers can help you explore professionals who provide services such as Will writing, estate planning, trusts, probate and related legal services.
Search for estate planning professionals in Buckinghamshire and compare your options before making a decision.
When choosing a professional, look beyond the headline price. Consider their qualifications, experience, regulatory status, insurance, fees and complaints procedure.
For complicated estates, professional advice can be especially important.
Could a Trust Be Right for Your Family?
Trusts can sometimes form part of an estate plan.
They may be considered when families have particular circumstances involving children, vulnerable beneficiaries, property or the way an inheritance should be managed.
However, a trust is not automatically a way to protect assets or avoid tax.
Different trusts have different legal and tax rules, and setting one up can have significant consequences.
If you are considering placing your home, savings or other assets into a trust, obtain appropriate professional advice before taking action.
Inheritance Tax Planning
Inheritance Tax is another area that Buckinghamshire families may need to consider, particularly where a family owns a valuable home or has substantial savings, investments or other assets.
Whether Inheritance Tax is payable depends on the circumstances of the individual and their estate, including available allowances, exemptions and the type and value of assets involved.
The rules can be complicated and can change, so families should not rely on assumptions about whether an estate will be liable.
Early professional advice may help you understand your position and identify legitimate planning options.
Planning Around Your Family Home
For many Buckinghamshire families, the family home is one of their most valuable assets.
This means property ownership can be an important part of estate planning.
You may have heard suggestions about giving your home to your children or transferring it into a trust to protect it.
These decisions should never be taken without understanding the consequences.
Transferring property can create legal, tax and financial issues and may not achieve the result you expect.
A qualified professional should consider your full circumstances before recommending any change to property ownership.
What Happens When Someone Dies?
When someone dies, their family may need to identify assets, deal with debts, establish the value of the estate, consider tax and determine whether probate is required.
If there is a Will, the executors named in it may need to apply for a grant of probate before they can deal with certain assets.
The probate process can involve banks, building societies, property, investments, pensions and other organisations.
Keeping your important documents organised and making sure your family knows where to find them can make the process easier.
Choosing an Estate Planning Professional in Buckinghamshire
Choosing the right professional is an important decision.
Before instructing a Will writer, solicitor or estate planning professional, consider asking:
- What qualifications do you have?
- Are you regulated?
- Do you specialise in estate planning or private client work?
- How much will the complete service cost?
- Are there additional charges?
- What happens if I need to change my Will?
- How will my documents be stored?
- What happens if your business closes?
- Do you have professional indemnity insurance?
- What complaints procedure is available?
The Government’s guidance on buying Will-writing services recommends checking matters such as qualifications, professional status, insurance and complaints procedures before choosing a provider.
For more complicated circumstances, families may benefit from speaking to a suitably regulated solicitor or other appropriately qualified professional.
Keep Your Estate Plan Up to Date
Making a Will or LPA is not necessarily the end of your estate planning.
Your circumstances can change over time.
You may need to review your arrangements if:
- You get married
- You divorce or separate
- You have children or grandchildren
- A beneficiary dies
- You buy or sell a property
- You receive a large inheritance
- Your financial circumstances change
- You start or sell a business
- Someone you appointed as an executor or attorney can no longer act
Regular reviews can help make sure your arrangements still reflect your wishes.
Estate Planning for Different Family Circumstances
Every family is different.
A married couple with children may have very different requirements from an unmarried couple, someone with children from a previous relationship, a business owner or someone supporting a vulnerable relative.
There is no single estate planning solution that works for everyone.
The purpose of professional advice is to understand your circumstances and explain the options available to you.
Start Planning Your Family's Future
Estate planning can seem complicated, but leaving everything until later can make matters much harder for your family.
A Will, Lasting Powers of Attorney and appropriate professional advice can provide a useful foundation. Depending on your circumstances, you may also need to consider trusts, Inheritance Tax, property ownership and probate.
If you live in Buckinghamshire, Trusted Lawyers can help you explore professionals who may be able to assist with your estate planning needs.
Search for estate planning professionals in Buckinghamshire and take the first step towards getting your family’s affairs properly organised.
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