Have you planned for life’s unexpected bumps in the road?
Modern life is rarely straightforward, and even the most well-planned life can present its own unexpected challenges. We look at some ‘What If’s and how they can affect you and ultimately, look to explain the importance of leaving a testamentary trust and assigning Lasting Power of Attorney (LPA) in order to avoid dying intestate.
What if…..you die without making a will?
Dying without a Will in place is known as intestacy or ‘dying intestate.’ We understand that making a Will can be time-consuming and something most people don’t want to think about doing. After all, you don’t plan on passing away anytime soon, so it goes on the bottom of the to-do pile! Dying intestate can have a big impact on what happens to your estate after you pass away. That said, to avoid dying intestate, we recommend you get a testamentary trust (or will trust) in order, as well as assign lasting power of attorney. True Bearing’s team of experienced Barrister Intermediaries can help you with this.
The effects of dying intestate
The implications of passing away without having made a Will can be vast and wide-reaching. Many people assume that if they die without a Will, then everything will automatically pass to their spouse. Depending on the value of the estate, this is not always the case. The main – and perhaps most significant – effect of dying intestate, is that it is no longer the deceased who decides which family member or loved one inherits what, but rather the law decides. This can obviously cause uncertainty and is far from ideal, which is why we recommend that you avoid dying intestate.
What happens to my Assets in the event of Dying Intestate?
If your estate and assets total under £270,000, then everything will automatically pass to your surviving spouse. However, if you own assets valued at over £270,000, then your spouse will inherit all the assets up to £270,000 and all personal possessions regardless of the value. The spouse will then receive half of the assets over £270,000 while the other half is then divided equally between the surviving children.
If a son or daughter has already died then their children will inherit their share instead. If you have no surviving relatives then your assets will go to the Crown.
Make your wishes known and ensure you avoid dying intestate by making a Will.
What if….you don’t make a Lasting Power of Attorney?
Lasting Power of attorney (LPA) is a legal document appointing one or more trusted people to act on your behalf if you become unable to make your own financial and health decisions. For example, if you have an illness or accident and no longer have ‘mental capacity.’
The effects of not having Lasting Power of Attorney
There are real ramifications if you become unwell or have an accident, and you have not arranged LPA. Your loved ones would need to apply through the courts to become a ‘deputy.’ This is a long and expensive process, and will only add stress to an already difficult situation.
By getting your LPA completed and assigned before anything happens to you, then you will have peace of mind that your loved ones will be able to act on your behalf without additional stress.
Did you know? At True Bearing we have a team of Barrister Intermediaries who can help with Legacy Planning and Lasting Power of Attorney?
If you would like to speak to them regarding any of these services then please call 01257 260011 or contact us.