Estate planning is not just for wealthy families. For families across Kent, putting the right arrangements in place can help protect your wishes, support the people you care about and make difficult decisions easier in the future.
Whether you live in Canterbury, Maidstone, Ashford, Dartford, Tunbridge Wells, Dover, Folkestone, Sevenoaks, Gravesend or another part of Kent, understanding the basics of estate planning can help you make informed decisions.
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 can include:
- 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 ensure that trusted people can make important decisions if you are no longer able to make them yourself.
Why Should Kent Families Plan Ahead?
It is easy to put estate planning off. Some people believe they are too young to need a Will, while others think estate planning is only necessary for wealthy people.
However, life can change 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 rules of intestacy may determine who inherits your estate.
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 review your Will when your circumstances change. Marriage, divorce, having children or grandchildren, buying a property or receiving an inheritance may all be reasons to consider whether your Will still reflects your wishes.
For more complicated family or financial circumstances, professional advice can help you understand the options available.
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 certain decisions on your behalf.
There are two main types:
Property and financial affairs LPA can cover matters such as bank accounts, bills, pensions, investments and property.
Health and welfare LPA can cover decisions about healthcare, daily care and where you live.
An LPA generally needs to be arranged while you have the required mental capacity to make the decision. Waiting until someone can no longer make their own decisions may mean it is too late to create one.
Search in Your County
Looking for Estate Planning Help in Kent?
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 Kent and compare your options before deciding who to instruct.
Could a Trust Help?
Some 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 may be considered 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, it is sensible to obtain appropriate professional advice before taking action.
Understanding Inheritance Tax
Inheritance Tax can be an important consideration for some Kent families, particularly where property, investments or other significant assets form a large part of an estate.
The amount of tax, if any, may depend on the value and type of assets in an estate, available allowances, exemptions and the circumstances of the person who has died.
Families with valuable property, substantial savings, investments, land or business interests may wish to understand how the rules could apply to their circumstances.
Inheritance Tax planning should be based on your individual situation rather than assumptions about the current rules.
Planning for the Family Home
For many people, their home is one of their most valuable assets.
You may have heard that giving your home to your children or placing it into a trust will automatically protect it from future costs or reduce tax. 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, consider obtaining advice from an appropriately qualified professional who can look at your wider circumstances.
Farms, Land, Holiday Homes and Other Property
Kent has a mixture of towns, villages, countryside and coastal communities. Some families may own farmland, agricultural land, holiday homes, second homes, rental properties or commercial property.
These assets can make estate planning more complicated.
The way a property is owned can affect what happens when one owner dies. Joint ownership, for example, may have different consequences depending on how the property is held.
If your estate includes significant property, land or business interests, professional advice can help you understand how these assets fit into your wider plans.
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 investments
- 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 Kent
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 make changes later?
- How are my documents stored?
- What happens if your business closes?
- Do you have professional indemnity insurance?
- What complaints procedure do you have?
Professional advice can be particularly valuable where there are trusts, complicated family relationships, substantial assets, farms, land, multiple properties, business interests or potential tax issues.
Keep Your Estate Plan Updated
Estate planning is not necessarily something you do once and then forget.
Your circumstances can change over time. You may want to review your arrangements after events such as:
- Marriage
- Divorce or separation
- Birth of children or grandchildren
- Death of a beneficiary or executor
- Buying or selling property
- Receiving an inheritance
- Starting, buying or selling a business
- Buying or selling land
- Buying or selling a second or investment property
- 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 that may be suitable for you.
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 Kent, Trusted Lawyers can help you explore professionals who may be able to assist with your estate planning needs.
