Estate planning allows you to put down in words what you want to happen after your death. It will be invaluable for those that you leave behind and make things much easier for them when they are sorting out your affairs. This will include letting them know where you have stored your Will so they have easy access to it in due course. Estate planning for childless couples doesn’t have to be a complex affair. If you and your spouse don’t have children, you still need to think about estate planning, as the focus of your financial legacy may be quite different from what it would be if you were parents. Without a well-designed and structured plan, much of your wealth could end up vanishing in tax or going to relatives you don’t want it to. In this article, estate planning for childless couples, we take a look at these issues in more depth and describe the mechanism involved.
Free Initial Telephone Discussion
For a free initial discussion on how we can help you plan your estate and create your Will, get in touch with us today. We are experienced in dealing with estate planning for childless couples and we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure your final wishes are accurately recorded and also avoid the stress of dealing with these issues on your own. A well-constructed estate plan can provide you with peace of mind and also help those administering your estate. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
What are the main points to consider?
- Do I still need a Will if I don’t have children?
The simple answer to this is yes. If you have assets or items of sentimental value, you may feel strongly about leaving them to someone particular when you die. Additionally, there may be charities or other organisations you would like to support when you die. Without a Will, there is no way of knowing what your wishes were. Having a Will is the basis of good estate planning. You also need to make sure it’s up to date and your beneficiaries know where it’s kept along with all your other important documents and information about your assets.
- If you became unable to look after your affairs, who would do this on your behalf?
When someone makes a power of attorney, they appoint someone else to act on their behalf. The person making the power of attorney is called a donor and the person appointed to act on their behalf is called an attorney.
A power of attorney gives the attorney the legal authority to deal with third parties such as banks or the local council.
Some types of power of attorney also give the attorney the legal power to make a decision on behalf of someone else such as where they should live or whether they should see a doctor.
In order to make a power of attorney, you must be capable of making decisions for yourself. This is called having mental capacity.
There are three types of power of attorney. These are:
Careful consideration needs to be given if you choose to appoint a power of attorney to take care of your affairs if you are incapacitated in some way.
- What are the implications of inheritance tax?
Few taxes are as loathed as inheritance tax. You work hard all your life, paying your taxes when due. When the time comes to pass on your assets in your Will, you have to pay tax again just because you die. It is an upsetting and hugely resented death tax. However, there are ways of mitigating this liability and this is where careful estate planning can be beneficial. If you have no children, you might think inheritance tax is irrelevant. But consider this; say for example your overall estate, including your house and savings and investments, is valued at £1 million. After the nil rate band of £325,000 is deducted, the remaining £675,000 would be subject to Inheritance Tax at 40%, making the total tax liability £270,000.
Would you be happy for this money to go to the government? You can combine your allowance with your spouse but inheritance tax will still be liable after that.
If you have no children and don’t have anyone in mind that you would like to leave your assets to when you die, you could simply spend everything you have. There is more to it than going to a casino and betting on roulette. However, with careful planning and the help of a financial planner, you can see exactly what you’ve got, what you can afford, and what you need to set aside for the future.
If you don’t leave any wealth behind when you die, you won’t pay any inheritance tax.
Although you may not have any children of your own, you still may want to leave something to someone else, for example, a niece or nephew, or a godchild. Making gifts is another effective method of estate planning. In addition to showing you how much you can afford to spend, cashflow modelling can also give you an idea of how much you can afford to give away without leaving yourself short.
- Planning for later life care
Regardless of whether or not you have children, planning for later life care fees is an essential part of any financial plan. One of the common misconceptions about long-term care is that it will be funded by the State when often this isn’t the case. There are some instances though where the NHS may fund your care fees or you may be entitled to local authority funding. The latter is means-tested and if you have £23,250 or more in the capital, your local authority will not provide you with financial support and you must fund your own care home fees. Nursing home fees can be considerably higher
Is there a recognised standard for writing a will?
In theory, you can write your will on the back of an envelope. However, as it is a legally binding document it must meet certain criteria. It needs to be witnessed and signed by two independent adults and dated. These witnesses cannot inherit anything from your will or benefit from your Will in any way (although they can act as executors). Your Will should also name your executors, who are authorised to gather in your assets and divide them up according to your instructions. This process is known as probate. As long as the executor is not a witness, they can be a beneficiary of the Will.
How we can help
We have a proven track record of helping clients plan their estates and draft their Wills. This includes relatively straightforward estates but also complex estates where assets are held all over the world. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
How to Contact our Wills and Probate Solicitors
It is important for you to be well informed about the issues and possible implications of planning your estate and writing your Will. However, expert legal support is crucial in terms of ensuring your final wishes are met as you would want them to be.
To speak to our Wills and Probate solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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