Estate planning is not just for wealthy families. For people across Gloucestershire, putting the right arrangements in place can help protect your wishes, support your family and make difficult decisions easier if something happens to you.
Whether you live in Gloucester, Cheltenham, Stroud, Cirencester, Tewkesbury, Yate, Dursley, Cinderford or another part of Gloucestershire, it is worth understanding the main areas of estate planning and considering which ones apply to your family.
What Is Estate Planning?
Estate planning means making arrangements for your money, property and other assets during your lifetime and after your death.
For many families, this includes:
- Making or updating a Will
- Choosing suitable executors
- Arranging Lasting Powers of Attorney
- Considering trusts where appropriate
- Understanding Inheritance Tax
- Planning what happens to the family home
- Protecting children and other beneficiaries
- Organising important financial and legal documents
- Understanding the probate process
Estate planning is about more than deciding who inherits your money. It can also help make sure trusted people are able to make important decisions if you lose the ability to make them yourself.
Why Should Gloucestershire Families Plan Ahead?
It can be tempting to put estate planning off.
Some people believe they are too young, while others think they do not have enough assets to need professional advice. But circumstances can change quickly.
You could lose mental capacity or die unexpectedly. Without appropriate arrangements, your family may have to deal with important financial and legal decisions at an already difficult time.
A valid Will allows you to set out who you want to benefit from your estate. If you die without a valid Will, the intestacy rules may determine who inherits.
Planning ahead gives you the opportunity to make your wishes clear while you are able to do so.
Making a Will
A Will is one of the foundations of estate planning.
It can set out who should inherit your money, property and possessions and who should be responsible for administering your estate.
You can also use your Will to make arrangements for children and other beneficiaries.
It is important to keep your Will up to date. Major changes in your life, such as marriage, divorce, having children or grandchildren, buying property or receiving an inheritance, may mean that your existing Will needs to be reviewed.
For more complicated circumstances, professional advice can help ensure your wishes are properly considered.
Lasting Powers of Attorney
A complete estate plan should also consider what happens if you become unable to manage your own affairs.
A Lasting Power of Attorney, often called an 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 matters such as bank accounts, pensions, bills, investments and property.
Health and welfare LPA can cover decisions about healthcare, daily care and where you live.
An LPA needs to be arranged while you have the required mental capacity. Waiting until someone can no longer make the decision themselves may mean it is too late to create one.
Search in Your County
Looking for Estate Planning Help in Gloucestershire?
Trusted Lawyers can help you search for professionals offering services such as:
- Will writing
- Estate planning
- Trusts
- Probate
- Lasting Powers of Attorney
- Inheritance Tax planning
- Property-related legal services
Search for estate planning professionals in Gloucestershire and compare your options before deciding who to instruct.
Could a Trust Help?
Some Gloucestershire families may consider using a trust as part of their estate planning.
A trust can involve assets being held by trustees for one or more beneficiaries. Depending on the circumstances, trusts can sometimes be used when planning for children, vulnerable beneficiaries or particular family arrangements.
However, trusts are not suitable for everyone.
They can have important legal and tax consequences, and transferring property or other assets into a trust may not produce the outcome you expect.
If you are considering a trust, particularly one involving your home or significant assets, obtain professional advice before taking action.
Understanding Inheritance Tax
Inheritance Tax is an important consideration for some families.
The amount of tax, if any, can depend on the value and type of assets in an estate, available allowances, exemptions and the circumstances of the person who has died.
For families who own valuable property, have substantial savings, land or business interests, understanding the potential position can be particularly important.
Inheritance Tax planning should be based on your individual circumstances rather than assumptions about the current rules.
Planning for the Family Home
For many people in Gloucestershire, their home is one of their most valuable assets.
That makes property ownership an important part of estate planning.
You may have heard that giving your home to your children or placing it into a trust can protect it or reduce future costs. However, these arrangements are not automatically suitable and can have significant legal and tax consequences.
Giving away ownership of your home can also mean losing control over an important asset.
Before changing ownership of your property, speak to an appropriately qualified professional who can consider your wider circumstances.
Farms, Land and Rural Property
Gloucestershire has many rural communities, and some families may own farmland, agricultural buildings, woodland, commercial property or other rural assets.
These assets can make estate planning more complicated.
Agricultural and business assets can have their own legal and tax considerations. The way land and property are owned can also affect what happens when someone dies.
If your family owns a farm, agricultural land or other significant rural property, professional advice can help you consider how these assets should fit into your wider estate plan.
Business and Family Assets
Some Gloucestershire families may also own or run a family business.
A business interest may need to be considered separately when making a Will or planning for the future. You may need to think about who should take over, whether the business could be sold and how the value should be divided between family members.
These decisions can be particularly important where some family members work in the business and others do not.
Professional advice can help you understand the options available.
What Happens When Someone Dies?
When someone dies, their family or executors may need to:
- Identify assets and debts
- Value the estate
- Deal with tax matters
- Contact banks and other organisations
- Deal with property, land or business assets
- Establish whether probate is required
- Distribute the estate to beneficiaries
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.
Having an up-to-date Will and keeping important information organised can make things easier for your family.
Choosing an Estate Planning Professional in Gloucestershire
Choosing the right professional is an important part of estate planning.
Before instructing a solicitor, Will writer or estate planning professional, consider asking:
- What qualifications do you have?
- Are you regulated?
- Do you specialise in Wills and estate planning?
- How much will the service cost?
- Are there any additional fees?
- What happens if I need to change my Will?
- How are my documents stored?
- What happens if your business closes?
- Do you have professional indemnity insurance?
- What complaints procedure do you have?
For straightforward estates, some people may choose to make their own arrangements. However, professional advice can be particularly valuable where there are trusts, complicated family relationships, substantial assets, farms, land, business interests or potential tax issues.
Keep Your Estate Plan Updated
Estate planning is not something you necessarily do once and then forget.
Your circumstances can change significantly over the years. You should consider reviewing your arrangements after events such as:
- Marriage
- Divorce or separation
- Birth of children or grandchildren
- Death of a beneficiary
- Buying or selling property
- Receiving an inheritance
- Starting or selling a business
- Buying or selling farmland or land
- Significant changes to your finances
- Changes to the people appointed as executors or attorneys
Regular reviews can help ensure your documents continue to reflect your wishes.
Estate Planning for Different Families
There is no single estate planning solution that works for every family.
A married couple with children may have different priorities from an unmarried couple, someone with children from a previous relationship, a farmer, business owner, landlord or someone supporting a vulnerable relative.
Your property ownership, family relationships, assets and long-term wishes all matter.
The purpose of professional advice is to understand your circumstances and explain the options available.
Start Planning Your Family's Future
Estate planning can feel complicated, but leaving everything until a crisis occurs can make things considerably harder for your family.
A valid Will and appropriate Lasting Powers of Attorney provide an important starting point. Depending on your circumstances, you may also need to consider trusts, Inheritance Tax, property ownership, farmland, business assets and probate.
If you live in Gloucestershire, Trusted Lawyers can help you explore professionals who may be able to assist with your estate planning needs.
Search for estate planning professionals in Gloucestershire and take the first step towards getting your family’s affairs organised.
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