Life is constantly changing. Whether it’s a new job, a growing family, or shifting financial priorities, planning for the future is more important than ever. You’ve already taken key steps by securing a mortgage and protecting your home with insurance. Now it’s time to ensure your estate is properly planned with a Will or Lasting Power of Attorney (LPA).
Without a legally valid Will, you risk leaving your loved ones in a difficult position where the government decides how your estate is divided. The same applies if you lose mental capacity without an LPA in place. Your family may struggle to manage your affairs. This is why estate planning is one of the most valuable gifts you can give your family.
Why a Will is essential for you and your family
Many assume their assets will automatically go to their spouse or children when they pass away. Unfortunately, without a Will, that isn’t always the case. Here’s why having an up-to-date Will is so important:
Without a Will, the law decides who inherits your estate
If you don’t make a will, your assets will be distributed according to the government’s intestacy rules. This could mean that your spouse doesn’t inherit everything or that loved ones you want to benefit get nothing.
Marriage cancels any existing Will
Your previous Will is no longer valid if you’ve recently married or remarried. Without updating it, your new spouse may inherit your entire estate, leaving children from previous relationships with nothing.
Unmarried partners have no automatic rights
If you’re not legally married or in a civil partnership, your partner will not inherit anything unless you specify it in a Will. This applies no matter how long you’ve been together.
Choosing guardians for minor children
A Will allows you to legally appoint guardians to care for your children if something happens to you. Without this, social services or the courts may decide who looks after them.
Protecting inheritance tax
A poorly written or outdated Will could result in your family paying more inheritance tax than necessary. Proper planning ensures more of your hard-earned assets go to your loved ones rather than the taxman.
Homemade Wills can be invalid
Many DIY Wills fail to meet legal requirements, making them completely ineffective. Working with a professional ensures your Will is legally sound and reflects your true wishes.
Lasting Power of Attorney - who will manage your affairs?
A Will protects your assets after you pass away, but what happens if you’re unable to make decisions during your lifetime? A Lasting Power of Attorney (LPA) allows you to appoint a trusted person to manage your finances or healthcare decisions if you cannot do so yourself due to illness, accident, or mental incapacity.
There are two types of LPA:
1.Property and Financial Affairs LPA
This allows your chosen person (known as an ‘attorney’) to manage your bank accounts, pay bills, and handle property or investments on your behalf.
2. Health and Welfare LPA
This gives your attorney the authority to make medical and care decisions if you cannot do so yourself.
Without an LPA, your family would have to go through a lengthy and costly court process to gain control of your affairs, causing unnecessary stress at an already difficult time.
Are you and your family protected?
Planning ahead isn’t just about protecting wealth; it’s about protecting your family’s future. By having the correct legal documents in place, you can:
Ensure your assets go to the people you choose
Appoint guardians for your children
Protect your partner and loved ones from legal battles
Avoid costly inheritance tax mistakes
Plan for the unexpected with a Lasting Power of Attorney
If you already have a Will, now is the perfect time to review and update it to ensure it reflects your wishes. Life changes. And so should your Will.
How to get started
As mortgage consultants, we know how important it is to plan for the future. We work with trusted Wills and Lifetime Planning experts to ensure our clients get the best advice.
Want to know more?
Get in touch with Tony today, and he’ll connect you with our professional estate planning partner to help you take the next step.
Wills and Estate Planning are not regulated by the Financial Conduct Authority.