Legal Planning Checklist for families

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ESTATE PLANNING CHECKLIST for families and individuals: Do you and your loved ones deserve proper legal protection?

WARNINGS

1. With the freezing of Inheritance Tax-Free Limits at 2009 rates until 2030 and IHT on some people’s pensions,  many more estates will be dragged into paying IHT, ESPECIALLY:
2. Those who have used (in the past, very sensibly) percentages to distribute their estate – often in gifting to charity. If the home is included in that percentage, and it usually is, then the Property Nil Rate Band – which can save £140,000 in IHT for a couple – can be reduced or even lost.
3. No such thing legally as a common-law spouse. Just two single people with far less tax advantages.
4. No Lasting Powers of Attorney – if things go wrong, a solicitor could end up running your life, appointed by the Court of Protection.
5. It is all about the conversation, which is not always easy. But it is vital. So:

Start off with a Free Legal Planning Review

if you come to me or send me copies of your documents. Or just have a chat.

I do ask that you have an open mind about using my services: a verbal review of an uncomplicated (to me) situation will be free of charge. Reviews of Trusts and IHT Planning will be based on time spent.

A note on fees. Mine are neither cheap nor expensive – half the price of some who may have far less experience than me (ask them), twice the price of others (ever heard of a sprat to catch a mackerel – and some “mackerel” are very expensive!)

There is no additional VAT, and only in unusually complex cases will the indicated fees be increased – should that be the case, you will have no obligation to proceed. Additional Trusts or Businesses are potentially likely to incur an additional cost.   Standard Trusts for under-age children are included in standard fees.

Whilst I am not a great fan of the needless complexity of Lasting Powers of Attorney, I was engaged with the Government when they were designed back around 2004, so I do have considerable experience with these tricky but crucial documents.

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John Fullbrook of Polegate says “I have consulted Steve several times and he has always gone above and beyond.  He is knowledgeable and trustworthy.”

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1.  Who looks after your financial decisions if you can’t?

Accident, sickness or old age can lead to you being unable to make decisions. Who takes charge?  NOT your spouse and probably never your partner.  The Court decides!  Who pays – YOU!  Unless you have a Lasting Power of Attorney Property & Financial Affairs.               Make YOUR choices count.   The predecessor was the Enduring Power of Attorney, which was much simpler and cheaper.  If you have one, it may be fine, but I will happily review it free of charge. However, they cannot be changed; they can only be replaced.

ACTION NEEDED:        ☐ Yes               ☐   No, I have this taken care of                          ☐ Perhaps it should be securely stored until needed?

2.  Who looks after your personal welfare if you can’t?

This covers where you live, who you see, what you eat, medical issues, etc. If not, then the Court of Protection (not your family) will decide unless you have a Lasting Power of Attorney for Health & Welfare.  Should the authorities decide you do not have mental capacity and need to be put away into an awful Care Home, you have very little in the way of rights otherwise, and your family have none.  They could spend potentially thousands appealing to the Court of Protection and just might eventually overturn the decision.

ACTION NEEDED:        ☐ Yes               ☐   No, I have this taken care of              ☐ Perhaps it should be securely stored until needed?

Recommended:

Single person taking both types of Lasting Power of Attorney £297 the pair plus Court fees.*

Couple taking out mirror (similar) Lasting Powers of Attorney, £549 for the four LPAs plus Court fees.*

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 3a. Advance Directive

An advance directive enables people to think about what they would like to happen to them should they lose the capacity to make informed decisions about their care.  They complement Health and Welfare Lasting Powers of Attorney and make specific decisions about medical matters (in particular, refusals of treatment) rather than leaving such decisions to your attorneys. Examples of such decisions include:

• The use of intravenous fluids and nutrition.

• The use of cardiopulmonary resuscitation.
• The use of life-saving treatment (whether existing or yet to be developed) in specific illnesses where capacity or consent may be impaired – for example, brain damage, perhaps from stroke, head injury or dementia.
• Specific procedures such as blood transfusion for a Jehovah’s Witness.

The normal fee for these is £50 each, where they are simple and only modest discussion time is needed, but considering your wishes can take you longer.

 3b. General Power of Attorney

These are simple documents which authorise others to deal with financial matters for you.

However, it ceases to be valid if you lose the ability to make your own decisions, and it will often only be recognised for a limited period – if at all.  But they do have limited use, and we are happy to prepare them in the right circumstances.  The fee is £50 or £25 if prepared with a Will or Lasting Powers of Attorney as they take a long time to be registered. If this is the only document I am preparing, then this fee is based on you coming to me.

4.  Will (deals with your affairs ONLY after death.)

NO WILL?  All decisions will be made by the State, including who gets your children. “Common Law” partners get nothing (without court action), and you will miss an asset protection opportunity.  If you have a Will, is it up to date?  Signed – and correctly witnessed? Invalidated by Marriage?  Guardians & all children included?  Regularly reviewed?  In a safe place?  Are executors able to find it & still appropriate? Is anyone likely to be better off if it is destroyed?

ACTION NEEDED:        ☐ Yes               ☐   No, I have this taken care of              ☐ Perhaps it should be securely stored?

1. Normal Will £147 for a single one, £247 for a pair of similar Wills for a couple.
2. Trust Wills to protect beneficiaries from exploitation or for beneficiaries who are on benefits or unable to manage their own affairs effectively. £197 single, £325 pair of similar Wills.
3. Property Trust Wills £347 single, £497 for a pair of similar Wills recommended for joint owners. Whilst a normal Will is perfectly satisfactory, Homeowners’ Wills offer substantial extra benefits, though sometimes I can achieve a similar effect with normal Wills, given the correct circumstances.
4. Tax Planning Wills for those with a taxable estate or requiring substantial flexibility of distribution after death. £649 single £849 pair of similar Wills. This includes a brief IHT Planning Review, which may lead to further tax savings and additional recommendations.
5. OPTIONAL Peace of Mind Service is an option that includes storage, free reviews, and discounts on updates and amendments when needed from £19.95 a year.

4.  Trusts:  Probate speed, security from creditors, speedy access & flexibility

Preserving wealth for the Generations plus savings up to a year on Probate delays before your beneficiaries get anything.   Unprotected homes can benefit unexpected people such as children’s creditors (or ex-spouses); Probate may take 5 to 12 months. Save money, hassle and potential TOTAL loss.  Trusts are greatly over-sold, but they certainly have their uses. *This does not work as well on higher-value properties – ask.  More on the benefits of Trusts.

ACTION NEEDED:        ☐ Yes               ☐   No, I have this taken care of or not relevant.

5. Probate – your Guide to Saving Costs.

I do not carry out any probate work personally, but I have a separate business, The Probate Department (brokers), which offers a Free Guide to Probate and a Guide to What the Registrar need to know when someone dies – these can be emailed out and are useful for advance planning – we are all going sometime!  The site contains a wealth of information to support you whether you do it yourself or require a little or a lot of professional help.

*Lasting Power of Attorney Registration Fees

* The fee charged by the Office of the Public Guardian for registering EACH Lasting Powers of Attorney is normally £82, payable directly to them. Certain benefits may reduce or even eliminate the fee. We make no additional charge for our work in immediate registration of Lasting Powers of Attorney we prepare, as long as we have been given accurate information.

Comparable Quotes from Polegate and Eastbourne Firms for making a Will or Lasting Power of Attorney:*

Firm 1                 Firm 2                   Firm 3                     Firm 4        Firm 5                  OUR FEES for a specialist service.

Cost of Simple Will                            £270                Not disclosed       Not disclosed           £360            £354                           £147

Cost of Pair of Simple Wills              £420                Not disclosed      Not disclosed           £540             £492                           £247

Cost of a Lasting Power of Attorney  £420             Not disclosed      Not disclosed           £480            Not disclosed             £197

Cost of two Lasting Powers of Attorney £630        Not disclosed      Not disclosed          £690            Not disclosed              £297

Cost of 4 LPAs for a couple                 £1,020           Not disclosed      Not disclosed           £1,080        Not disclosed              £549

To make a pair of normal Wills in Polegate and BOTH LPAs for a couple, our fee would be £796, as against £1,440.   Why? Because I am a specialist with low overheads and 24+ years of experience.

Philip Lawrence, the headteacher, stabbed to death outside his school.

Robin Windsor, a professional dancer who had appeared on Strictly Come Dancing died at 44.

Philip Plews only made it to 17 before being run over and killed.

Mark Pryor died at 46

Vignesh Raman was killed while cycling.

Dorothy Morgan died of neglect at 71. It might have been avoided with Lasting Powers of Attorney and well-chosen attorneys.

Liam McGinty 29, death might have been avoided with Lasting Powers of Attorney and well-chosen attorneys. If you are sectioned, it may be assumed that you are incapable of marking decisions, so an LPA attorney just might have been able to save the day.

Luke Miller 23 died of a single stab wound, an increasingly common occurrence sadly.

Michael Jones, 26 died in an industrial accident.

Who is my LEGAL next of kin?                More about the Society of Will Writers                     Parental Responsibility              Remember a Charity

* The Competition and Markets Authority say that solicitors are better placed to write Wills and  Lasting Powers of Attorney than Will Writers in general. I would respectfully point out that the overwhelming majority of solicitors do not write Wills or Lasting Powers of Attorney regularly, and proper* Professional Will Writers do and also have regular training on the topic.  I would estimate that I attend at least 8 training sessions every year where the topic of powers of attorney is discussed and have done since 2006, even before they were launched to replace Enduring Powers of Attorney. That said, there are some solicitors who are first-rate if you can afford their fees.

*Typically members of the Society of Will Writers or the IPW.