Different Types of Wills
Making a will is incredibly important, as without one you have no control over who will inherit what you own. But with so many different types of will available, which one should you choose? This article takes a look at each type of will in turn, helping you decide which one is best suited to you.
Single and Mirror Wills
A single will is what people commonly think of as the ‘standard will’, and is a document that sets out the wishes of one individual. A mirror will serves exactly the same purpose, but is designed for couples (be it married, unmarried, or in a civil partnership) who have similar or identical wishes. This gives couples the opportunity to save money by purchasing one mirror will, rather than two separate wills.
Single and mirror wills allow you to:-
- Appoint a person/people to be your Executor(s) – someone you trust who you wish to deal with your estate after your death;
- Set out who you wish to inherit specific possessions or receive a certain amount of money and/or gifts;
- Appoint guardians to care for children under the age of 18 years old;
- Name any specific wishes such as funeral arrangements, pets, or gifts to charity.
Property Trust Wills
Property Trust Wills offer the same benefits as a standard will, but is of greatest interest to those who own a property and wish to protect its value for future generations. This sort of will therefore ensures who will inherit a property (or a share of it) and guarantees that the property value is not reduced by care fees that may potentially have to be paid in the future.
A property trust will allows you to:-
- Protect the property for a specific person/people, even if your surviving partner remarries or makes a new will after your death;
- Protects the property for a specific person/people while allowing someone else to live in it for the rest of their lifetime – for example, in practice this might mean the property can be inherited by the children but only after the remaining survivor of the marriage passes away;
- Reduces the impact of care fees on the property value, should your surviving partner have to go into care.
Flexible Interest Trust Wills
These are similar to Property Trusts Wills, but as well as protecting your property a Flexible Interest Trust Will can offer additional security to those who have a large amount of savings or investments. In practical terms, this type of will ensures the income generated by your investments goes towards supporting a specified person (such as a surviving partner) while also guaranteeing that your assets and/or investments will be protected for those you wish to inherit them.
A Flexible Interest Trust Will allows you to:-
- Prevent your property from losing money;
- Guarantee who will receive your assets and/or investments;
- Nominate a person to benefit from the income generated by your investments for the rest of their lifetime.
Discretionary Trust Wills
Discretionary Trust Wills are designed for people who want to leave money to a relative or loved one who is not in a position to receive it directly. This might be because the person in question is:-
- Not mentally or physically capable of dealing with financial affairs; • In financial trouble or severe debt;
- Receiving disability benefits, which would be compromised by the inheritance of money.
A Discretionary Trust Will is a solution to these problems, as instead of a beneficiary receiving money directly, the inheritance is dealt with by a reliable person or people – known as Trustees – who will manage the inheritance and make financial related decisions on behalf of your loved one. This offers peace of mind, as it ensures a vulnerable person you care about will be provided for after you are gone.
Living Wills
A Living Will allows you to officially record what kind of medical treatment you would or would not like to receive should there come a time in the future when you become incapable of making decisions or communicating your wishes. In the event that you do become incapacitated, a Living Will is particularly helpful for your loved ones, who can be reassured that the decisions they must make on your behalf reflect your wishes.
A Living Will can include legally binding requests, such as refusing certain types of treatment, as well as specifying how long and extensive medical care should be. However, you cannot use Living Will to ask for specific medical treatment, or anything that is against the law, like requesting help to commit suicide. Furthermore, you cannot ask for someone else to decide what treatment you should have unless you have a Lasting Power of Attorney.
Lasting Power of Attorney
The legislation regarding Lasting Powers of Attorney (LPA) was introduced in 2007 when it replaced the former Enduring Powers of Attorney (EPA). It gives a nominated person/people – known as an Attorney(s) – the power to deal with your affairs should the need arise. This may be because you plan to go abroad leaving you unable to manage your finances or, more commonly, you become physically and/or mentally incapacitated.
With an LPA, your Attorney can be given a range of powers, including claiming benefits, pensions and allowances on your behalf, operating bank or building society accounts, and buying or selling property. As well as financial affairs, an LPA can also be given permission to decide upon day to day care, such as medical treatment and living arrangements.
Summary
If you have not already made a will, or are thinking of changing one that has already been created, then do not delay any longer. You can discuss your options with a legal expert, who can advise you on the different types of will before helping to you to draft a document that ensures all your wishes will be carried out after you are gone.
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