Estate planning is about deciding what should happen to your money, property and other assets, both during your lifetime and after your death.
For families in Berkshire, this could involve making a Will, arranging Lasting Powers of Attorney, considering trusts, understanding Inheritance Tax and making sure your family knows where important documents are kept.
A well-organised estate plan can give your family greater clarity when difficult decisions need to be made.
Why Estate Planning Matters in Berkshire
Many people assume estate planning is only necessary if they have significant wealth.
That is not the case.
If you own a home, have savings, investments, pensions, business interests or other valuable possessions, it is worth thinking about what would happen to them if you died.
Your family circumstances are also important. You may have children, grandchildren, children from a previous relationship, a vulnerable family member or someone who depends on you financially.
The right estate planning arrangements will depend on your individual circumstances.
Making a Will
A Will is one of the most important parts of an estate plan.
It allows you to set out who you want to inherit your estate and who you want to deal with your affairs after your death.
Without a valid Will, the intestacy rules determine who inherits your estate.
Your Will can also name guardians for children where appropriate and provide instructions for how your estate should be distributed.
If your circumstances have changed, it is also important to review an existing Will. Marriage, divorce, separation, having children or grandchildren, buying property and significant changes in your finances can all be reasons to consider reviewing your arrangements.
Lasting Powers of Attorney
Estate planning is not just about what happens after you die.
You should also consider what would happen if you became unable to make important decisions yourself.
A Lasting Power of Attorney (LPA) allows you to appoint people you trust to make decisions on your behalf.
There are two types:
- Property and financial affairs LPA
- Health and welfare LPA
A property and financial affairs LPA can cover matters such as bank accounts, bills, pensions and property. A health and welfare LPA can cover decisions about healthcare, daily care and where you live.
You must have the required mental capacity when making an LPA, which is one reason it is sensible to arrange one before it becomes urgently necessary.
Search in Your County
Looking for professional estate planning help in Berkshire?
Trusted Lawyers can help families explore their options when looking for professionals who deal with Wills, estate planning, trusts, probate and related legal services.
Search for estate planning professionals in Berkshire and compare your options before making a decision.
When choosing a professional, do not automatically choose the cheapest option. Consider their qualifications, experience, regulation, insurance, fees and complaints procedure.
For more complicated family circumstances, professional legal advice can be particularly valuable.
Understanding Trusts
Some Berkshire families may consider using a trust as part of their estate planning.
A trust is a legal arrangement that can involve assets being held by trustees for beneficiaries.
Trusts can be useful in certain circumstances, but they are not a simple solution for every family.
The right type of trust, if any, will depend on factors such as your family circumstances, assets, objectives and tax position.
Anyone considering transferring a property or other significant assets into a trust should obtain appropriate professional advice first.
Inheritance Tax Planning
Inheritance Tax is another issue families may need to consider.
Whether Inheritance Tax is payable depends on the circumstances of the individual and the estate, including the value and type of assets, available allowances and exemptions.
For families with valuable property or other substantial assets, understanding the potential tax position early can be particularly important.
Inheritance Tax planning should be based on the family’s actual circumstances rather than assumptions about how the rules work.
Planning for the Family Home
For many Berkshire families, the family home may be their most valuable asset.
This can make decisions about the property an important part of estate planning.
Families sometimes consider giving property to children or placing property into a trust because they want to protect the home or reduce future tax or care-related costs.
However, transferring property can have significant legal, tax and financial consequences.
It is important to obtain independent professional advice before making major changes to ownership of your home.
What Happens When Someone Dies?
After a death, the family may need to identify the person’s assets and debts, establish the value of the estate, deal with taxes and determine whether probate is required.
Where there is a Will, an executor may need to apply for a grant of probate before they can deal with certain assets. GOV.UK explains that an executor named in a Will can apply for probate and will normally need the original Will.
Having an organised estate plan can make this process easier for the people left behind.
Choosing an Estate Planning Professional in Berkshire
There are several questions families should ask before choosing a Will writer, solicitor or estate planning professional.
Consider asking:
- Are they appropriately qualified?
- Are they regulated?
- Do they have experience with your type of estate?
- What does their fee include?
- Will you receive a copy of all documents?
- How are your documents stored?
- What happens if your circumstances change?
- Do they have a clear complaints procedure?
- Do they have appropriate professional indemnity insurance?
For straightforward situations, some people may be able to prepare certain documents themselves. However, professional advice can be particularly useful where there are trusts, complicated family relationships, significant assets or potential tax issues.
Keep Your Estate Plan Updated
Creating an estate plan is not necessarily a one-time task.
You should consider reviewing your arrangements when major life events occur.
These might include:
- Getting married
- Separating or divorcing
- Having children
- Having grandchildren
- Buying or selling property
- Receiving an inheritance
- Starting or selling a business
- A significant change in your financial circumstances
- The death of a beneficiary or executor
Keeping your Will and other arrangements up to date can help ensure they continue to reflect your wishes.
Start Planning Before Your Family Needs To
Estate planning gives you an opportunity to make important decisions while you are able to do so.
For families in Berkshire, this could mean something as straightforward as making a Will and arranging LPAs, or it could involve more detailed planning around property, trusts, tax and complicated family circumstances.
The most important thing is not to leave everything until a crisis occurs.
Trusted Lawyers can help you explore estate planning professionals and legal services in Berkshire, allowing you to compare your options and find the type of help that is appropriate for your circumstances.
Estate Planning in Berkshire: What Families Need to Know
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