Why You Should Make Putting Your Affairs in Order Your New Year’s Resolution!

At this time of year, we are all full of good intentions about getting through those important tasks that we just never seem to get around to doing. Hannah Thomas, a Partner in our Wills & Probate team explains why you should make putting your affairs in order at the top of your New Year’s resolutions, by ensuring your Will, family arrangements and power of attorney are up to date and reflect your current circumstances – and how doing so will help protect your loves ones and avoid future complications.

Your Will

Leaving instructions for what should happen to your dependants, possessions and finances after your death is arguably one of the most important things that we should get in order and yet it is estimated over half of UK adults don’t have a Will.

We all know it’s not pleasant to think about what will happen after our days but it is so important that we are all prepared for whatever the future holds. Having a Will in place makes the process of sorting out your estate so much easier for those you leave behind and allows you to leave your estate to whoever you wish. Without a valid Will in place, your estate is distributed according to the intestacy rules and these rules aren’t always what you would expect. For example, just because you are married, your estate will not necessarily entirely pass to your spouse. The rules also don’t take into consideration cohabitees or blended families.

If you already have a Will in place, ensure it reflects your current wishes. Look to update it if you have experienced significant life changes such as marriage, divorce, the birth of a child or even the purchase of a new property.

It’s a common misconception that making a Will is a long, complicated and expensive process but in reality, depending on your circumstances it can be a fairly painless process! To ensure your Will is valid, it’s always worth instructing a solicitor as there are various legal formalities which need to be followed correctly, so that you have the reassurance that your wishes will be carried out.

One of the most important decisions you’ll need to make within your Will is how your assets will be distributed.

Assets such as property held as joint tenants, jointly held bank accounts and life interest policies held in trust or pensions will not form part of the estate passing via your Will. It is therefore important to also ensure that these assets are passing as you would like. Ensure you have completed any relevant nomination forms with the life insurance and/or pension scheme administrators. Look at severing your joint tenancy if it is not your wish for your property to pass to a surviving co-owner.

Any assets passing in the Will can be left in a variety of ways. You can leave specific legacies or bequests, where you specify which person or organisation should receive which asset. These can range from items such as a property or family heirlooms to a sentimental keepsake or the contents of a bank account. You can also leave sums of money, known as pecuniary or cash legacies.

Assets can be distributed via various types of trust through your Will which can protect vulnerable beneficiaries, preserve family wealth, minimise inheritance tax or to ringfence assets for certain beneficiaries such as children, whilst also ensuring others have the benefit of such assets during their own lifetime – for example,  the right for a spouse to continuing residing in a property.

Within a Will you will need to appoint executors who will be the people who administer your estate. Executors must be trustworthy and reliable as will collect in assets, settle any tax and pay off your debts before distributing your estate to your beneficiaries.

It is also important to appoint guardians to care for any children you leave who are under the age of 18. Not doing this before you die leaves the decision up to the Court and could lead to someone you would not have chosen to raise your children. The process could also lead to family upset and dispute.

Lasting Powers of Attorney

There are several benefits of a Lasting Power of Attorney, but ultimately by putting an LPA in place, it allows you to appoint someone you trust to manage your affairs if you were to lose capacity. Losing capacity does not just occur in old age or after developing an illness such as dementia. You can lack capacity to make your own decisions when unconscious following a sudden accident. It is crucial to plan for the unexpected.

There are two kinds of Lasting Power of Attorney:

• Property and financial affairs: Allows your appointed attorney to manage your finances, bank accounts, property, and investments.
• Health and welfare: Grants your attorney the authority to make decisions about your care, treatment, and medical needs, which can only be used if you lose capacity.

You can nominate different people to make decisions on the different aspects of your life, should you wish.

It is important to include detailed instructions and preferences within the Powers of Attorney. This will ensure your attorneys are aware of your wishes so that they can be carried out and this will also prevent conflict. Your preferences and instructions can specify medical treatment that you would consent to or refuse, where you would like to live, who you would like to have contact with as well as instructions regarding your investments, conditions on the sale of any property or details of any regular gifts or donations that you make that should continue if you were to lose capacity.

Watch – Afonwy Howell-Pryce, partner in our Wills & Probate team, discusses all the key points around Lasting Powers of Attorney with rugby legend Sam Warburton OBE.

How can we help?

If you’re looking to write or update your Will, or make a lasting power of attorney, our specialist Wills and Probate solicitors are on hand to assist.

Whether you meet us at one of our offices in Newport or Cardiff to discuss your needs or arrange a home visit, our experienced solicitors will help guide you through the process.

Get in touch with a member of our team today.