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Frequently Asked Questions
If the information that you were looking for was not found on the specific service page, then have a look at the questions and answers below.
You are also welcome to get in touch directly, if you would like more bespoke advice for your personal circumstances. These conversations are free, with no obligation. |
- Trusts
Last Will and Testament
Q. Why Should I write a will?
A. Having a Will in place gives you sole discretion of how your assets will be distributed to your loved ones. It enables you to decide who you would like to leave your family possessions to, such as cars and bequests. It also means that your businesses or investments can be transferred smoothly.
If you have children under the age of 18, then you can name a person who will have guardianship over them, also to name children from previous marriages that you would like to leave assets to.
You are able to reduce potential tense situations and disruption to family and loved ones by having the distribution of your assets clearly defined within the legally binding Will document.
If you are predisposed to wanting a charity to benefit from part/ all of your estate, this can also be defined within your Will.
If you have children under the age of 18, then you can name a person who will have guardianship over them, also to name children from previous marriages that you would like to leave assets to.
You are able to reduce potential tense situations and disruption to family and loved ones by having the distribution of your assets clearly defined within the legally binding Will document.
If you are predisposed to wanting a charity to benefit from part/ all of your estate, this can also be defined within your Will.
Q. What is the difference between a living will and a last will?
A. A living Will provides health care instructions, such as whether or not you would like to be resuscitated or put on life support, should a situation arise. A last will is the document stating how you would like your assets distributed in the event of your death.
Q. What happens if a person dies without a last will?
A. If you die without a Will in place it is referred to as dying intestate, your money, property and possessions will be shared out according to the law instead of your wishes. This means that assets could pass to those for whom you had not intended, and those that you had intended to benefit, receive little to nothing at all.
Typically assets are left to the spouse. In the event of there not being a living spouse, then the assets are shared amongst the children equally. If there are no children, then assets would be passed onto the nearest living relative, once it has been passed through probate, which could be a very timely occurrence
Typically assets are left to the spouse. In the event of there not being a living spouse, then the assets are shared amongst the children equally. If there are no children, then assets would be passed onto the nearest living relative, once it has been passed through probate, which could be a very timely occurrence
A. Does a person need to have a minimum assets value to create a will?
A. The simple answer is no, you can create a Will to distribute as little as £10 or £10 million. The only difference is the tax implications that it will attract. It is important that you understand how inheritance tax is worked out, and with this knowledge create an informed estate plan.
Discussing estate planning with our experienced Will writer can inform you of the different options that you have, to ensure that your loved ones will be due to inherit as much of your hard earned estate as possible.
Discussing estate planning with our experienced Will writer can inform you of the different options that you have, to ensure that your loved ones will be due to inherit as much of your hard earned estate as possible.
Q. How do I decide what is best for me?
A. Lacuna Wills can help with this. Wills are not necessarily complicated, but there can be a lot of aspects to a Will in order to make them bespoke to you and your situation. Family dynamics can be very different, and there are ways of writing a will to ensure that your wishes are upheld as stated by you and your assets distributed as per your instructions and behests. The most important thing is that you don't neglect planning your estate. It's the best way to protect your loved ones and make sure your assets are distributed according to your wishes.
Lasting Power of Attorney
Q. What is the difference between a power of attorney and a lasting power of attorney?
A. The main document that encompasses all needs during your lifetime is a Lasting Power of Attorney (LPA) it is a legal document that gives one, or more, permission to make decisions on your behalf. An LPA for financial decisions can be used both whilst mental capacity is held, and can continue once it is lost.
Q. Is lasting power of attorney necessary?
If you lose mental capacity, and an LPA has not been set up, then loved ones will be required to apply through Legal channels to become a 'deputy', a long and expensive process. You can only set up a Lasting Power of Attorney when you have mental capacity.
Q. What does it mean to lose mental capacity?
A. Mental capacity means the ability to make or communicate specific decisions at the time they need to be made. To have mental capacity you must understand the decision you need to make, why you need to make it, and the likely outcome of your decision.
Some people will be able to make decisions about some things but not others. For example, they may be able to decide what to buy for dinner, but be unable to understand and arrange their home insurance. Alternatively, their ability to make decisions may change from day to day.
Needing more time to understand or communicate doesn’t mean you lack mental capacity. For example, having dementia doesn't necessarily mean that someone is unable to make any decisions for themselves. Where someone is having difficulty communicating a decision, an attempt should always be made to overcome those difficulties and help the person decide for themselves.
Some people will be able to make decisions about some things but not others. For example, they may be able to decide what to buy for dinner, but be unable to understand and arrange their home insurance. Alternatively, their ability to make decisions may change from day to day.
Needing more time to understand or communicate doesn’t mean you lack mental capacity. For example, having dementia doesn't necessarily mean that someone is unable to make any decisions for themselves. Where someone is having difficulty communicating a decision, an attempt should always be made to overcome those difficulties and help the person decide for themselves.
Q. How long does it take to create a lasting power of attorney?
A. We can come to your home to discuss the finer points of your decisions and from there begin to fill in the forms to appoint your chosen person as an attorney. We will then register your LPA with the Office of the Public Guardian (this can take up to 10 weeks).
Q. Can it be changed?
A. The person who the power of attorney is for (known as the principal), has the authority to revoke it at any time, as long as they are still mentally competent and able to communicate.
Q. What power does it give you?
A. The power that a named person has is dependent on whether it is for an ordinary power of attorney, or a lasting power of attorney; and whether it is for health and welfare or property and finance. At the time of completing the LPA form, this can be further explained to you. The power that you have will always be in the best interest of the person who you are making the decisions on behalf of.
Q. Does a spouse automatically have medical power of attorney?
A. If you are legally married, your spouse is already designated by law to speak on your behalf if you become incapacitated. In all other cases, you should choose someone to designate as your Health Care Power of Attorney.
Trusts
Q. Why do I need a trust?
A. Trusts are set up for a number of reasons, including:
- to control and protect family assets
- when someone’s too young to handle their affairs
- when someone cannot handle their affairs because they’re incapacitated
- to pass on assets while you’re still alive
- to pass on assets when you die (a ‘will trust’)
Q. Do I need a trust if I already have a Will?
A. This is dependent on the individual care and depth of detail within the will that you already have. It is also dependent on how long ago you had your will written, if you have had a will between 3-5 years, or if a life changing event has occurred, then it may be wise to have it reviewed to review whether your assets and estate could be better utilised.
Q. Do I lose control of my money if I set up a trust?
A. You are able to access the trust at any time if you are named as a trustee, and will therefore be known as the settler. The trustees own the trust and are able to make decisions and work with this as you see fit.
Q. Are trust services expensive?
A. No, although the cost of a trust is dependent on the intricacies and level of work involved as well as the size of the estate. It is typical to set up a trust to protect your house or other assets from third party charges and in this respect you can save money in the long run and make the cost of the trust back very quickly.
Q. Is my trust agreement private?
A. Yes, only those people nominated as trustees are able to view the content of the document. All trustees need to be in agreement for any changes or withdrawals to be made.
Q. Is setting up a trust difficult?
A. No, with the support and guidance of Lacuna Wills, together we could ensure that it is a simple and straight forward task.
Q. Will my assets be safe?
A. Yes, by writing a trust you are effectively ring fencing your assets to protect them against sideways inheritance, bankruptcy, and third party fees, making sure that beneficiaries don't inherit money at too young an age.
