Wills and lasting power of attorneys are very useful and necessary documents that serve different purposes. Wills protect the interests of your beneficiaries after you have died, whereas the lasting power of attorneys protects your interests during your lifetime. The moment you die, the power of attorneys cease, and your Will becomes relevant. See outlined below some additional reasons for making these documents, which you may not have thought about.
Five reasons why you should make a Lasting Power of Attorney (LPA)
- Choice. It is important to put arrangements in place early, so if you are incapable of managing your own affairs, someone we have chosen can make these important decisions on our behalf.
- Save money in the long term. If you lose mental capacity without an LPA, your loved ones will need to apply to the Court of Protection to be appointed as a ‘deputy’, in order to manage your affairs. This is a time consuming and expensive process.
- Peace of mind. People you trust and who love you will be allowed to manage your affairs under an LPA when the need arises. You have peace of mind that your financial affairs and wellbeing will be looked after if you are no longer able to.
- Save distress to your family. Without an LPA in place, your loved ones will find it very difficult to manage your health or financial affairs for you, as they have no legal authority to do so.
- Prevent financial hardship to your family. If you are a joint account holder with your spouse/partner and the other joint account holder becomes mentally incapable, you do not automatically have the right to access the account unless you have an LPA. If a joint account was frozen, this could result in severe financial hardship to a spouse/partner as they would not be able to access the money in the account(s).
Five reasons why you should make a Will
- Appoint guardians for your minor children rather than leave who will care for them to chance.
- Reduce or eliminate the amount of inheritance tax due on your estate.
- Provide for a cohabitee, who would otherwise not currently benefit under the rules of intestacy even if they have children with you.
- Include a formula that specifies a certain proportion of your estate goes to charity, so that your estate benefits from a reduced rate of inheritance tax.
- Through protective trusts, maximise how much your partner, children and grandchildren ultimately inherit.
April King Legal can help with making wills and LPA’s. We operate in 36 locations across the country. We can offer a free information pack, a free one-hour meeting to discuss your needs, individual bespoke advice based on your personal circumstances, home appointments at no extra charge, office appointments and video calls.
Call us on: 0800 788 0500 (9am-5pm Mon-Fri) to request our free information pack or make an appointment for the free initial meeting.
Blog written by: Aurela Qerimi GCILEX