Estate planning is not just for wealthy families. For people across Cornwall, 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 Truro, Falmouth, St Austell, Penzance, Newquay, Bodmin, Camborne or another part of Cornwall, 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 inheritance. 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 Cornwall 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 become seriously ill, 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 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 and property and who should be responsible for administering your estate.
You can also use your Will to make certain arrangements concerning 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.
Your Will must also meet the legal requirements for it to be valid.
For complicated circumstances, professional advice can help ensure your wishes are properly considered.
Lasting Powers of Attorney
A complete estate plan should consider what happens if you become unable to manage your own affairs.
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 matters such as bank accounts, pensions, bills, investments and property.
Health and welfare LPA can cover decisions concerning 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 professional estate planning help in Cornwall?
Trusted Lawyers can help you explore professionals offering services such as Will writing, estate planning, trusts, probate and related legal services.
Search for estate planning professionals in Cornwall and compare your options before deciding who to instruct.
When comparing providers, look at more than the price.
Consider their qualifications, experience, regulatory status, insurance, fees and complaints procedure. The Government has specific guidance for consumers considering Will-writing services, including checking professional status and insurance.
Could a Trust Help?
Some Cornwall 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 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 or have substantial savings and investments, 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 Cornwall, 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.
These arrangements are not automatically suitable and can have significant legal and tax consequences.
Before changing ownership of your home, speak to an appropriately qualified professional who can consider your wider circumstances.
What About Holiday Homes and Second Properties?
Property can be particularly important to estate planning for some Cornwall families.
If you own a holiday home, second property, rental property or land in addition to your main residence, you should consider how these assets fit into your wider estate.
The ownership structure, value of the property and how it is used can all affect the legal and tax position.
If you own property jointly with someone else, it is also important to understand how that ownership works and what could happen to your share when you die.
Professional advice can help you understand how your property portfolio should be considered as part of your estate plan.
What Happens When Someone Dies?
When someone dies, their family or executors may need to identify assets and debts, value the estate, deal with taxes and establish 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 process can involve banks, building societies, investment providers, property and other organisations.
Having an up-to-date Will and keeping important information organised can make things easier for your family.
Choosing an Estate Planning Professional in Cornwall
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, multiple properties 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
- Significant changes to your finances
- Buying or selling a holiday or second home
- A change in the people appointed as executors or attorneys
Regular reviews can help ensure that 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 business owner, a landlord or someone who owns several properties.
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, second homes and probate.
If you live in Cornwall, Trusted Lawyers can help you explore professionals who may be able to assist with your estate planning needs.
Search for estate planning professionals in Cornwall and take the first step towards getting your family’s affairs organised.
