Posts tagged “Estate Planning”

While most people in the UK believe their affairs are simple, their requirements are often quite complicated when it comes to their Will. 
 
According to recently published research online Will writing services often fail to consider things that can significantly affect the details of your Will such as marital status, children, assets, business and property ownership, overseas property investments and disinheritance. 
creating your Will on your laptop is easy but it might not be valid.
In 2014 the Care Act introduced a ‘care cap’ of £72,000 on the total you would be liable to pay for your care costs. It came in to effect in April 2020
 
However, most people will have to spend much more before the cap is reached; often over £140,000. 
A valid Will makes it much easier for your executors to administer your estate when you die. Your friends and family will receive their inheritance as you intended, and people will be reassured that they understand your wishes. 
 
There are almost six million businesses in the UK, most of them ranging from sole traders to businesses with around 10 employees, but many people don’t put the same measures in place for their business
Man working on a lathe in a workshop
If you make a gift to a young person in your Will which they receive when they reach a certain age you will create either a bereaved minor’s trust or a bereaved young person’s trust, depending on their age. 
 

A bereaved minor’s trust 

A bereaved minor’s trust is created if you make a gift in your Will to your children on the condition that they reach the age of 18. 
 
These trusts can only be created for your children or stepchildren. A grandparent, for example, can’t create this type of trust in their Will for their grandchildren. 
 
The following conditions must be met: 
at least one of the child’s parents must have died 
the trust must have been created by a parent’s Will, intestacy, or under the Criminal Injuries Compensation Scheme 
the trust must meet inheritance tax (IHT) conditions so that the child becomes absolutely entitled to the trust assets no later than their 18th birthday and, before then, the child benefits from any capital growth and income generated. 
 
While the child is under 18, money generated by the trust can be saved or used for the child’s maintenance, education or other benefits. Trustees can therefore use any income and capital directly for the child or by paying the child’s surviving parent or guardian. 
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