Estate Planning

Although arranging your affairs in preparation for your death may seem morbid, Estate Planning is an important process that everyone should give careful consideration to.

What Is Estate Planning?

Estate Planning involves preparing your Estate – ie. the things you own, such as property, finances and assets – so that it is ready to be transferred after your death. It is something everyone should do during their lifetime, as anticipating the disposal of your wealth can have many benefits, such as:

Helping to ensure beneficiaries named in the Will get the most out of their inheritance;
Minimising the impact of tax, such as Inheritance Tax;
Assigning guardians for minors;
Creating Trusts to protect and control a beneficiary’s inheritance.

Estate Planning – What Can You Do?

When it comes to Estate Planning, there are a number of things you can do. These are explored in more detail below:-

Make a Will
In making a last Will and Testament, you have a legally-binding document which guarantees how your Estate will be distributed when you pass away. Without one, the rules of Intestacy will apply, meaning your loved ones may lose out.
Inheritance Tax Planning
You need to be aware whether or not your Estate is valued over the Inheritance Tax threshold – currently held at £ £325,000 if you are single, and £ 650,000 if you are married or in a civil partnership. If it is due, Inheritance Tax can have a significant effect on the sum of inheritance beneficiaries are left with.
However, there are certain measures you can take to help reduce the impact of tax. If possible you could make gifts to your beneficiaries, effectively distributing your assets before your death. As long as this is done seven years before you pass away, these assets will not be eligible for tax. Additionally, you may want to research exemptions, whereby you move assets into the name of your spouse or civil partner.
Trusts
There are many different types of Trusts that suit various circumstances, and they are an excellent way of controlling your Estate, even after you are gone. For example, if a beneficiary is a minor, you may decide to hand over their sum of inheritance to a Trustee to hold temporarily. The Trustee will then follow instructions set out by the deceased regarding how and when the beneficiary is to receive their inheritance – eg. on their 18th birthday or in a number of small payments.
Organise Your Affairs
By keeping your affairs in order, your Executors will have a much easier time when in comes to Estate Administration. Organise your paperwork, pay any outstanding debts and ensure your Will is up-to-date and accessible.

Ask The Experts

If you need help planning the disposal of your Estate, contact a legal expert today. Whether you need assistance drafting a Will, advice on Inheritance Tax, or guidance on the different types of Trusts, a solicitor will be able to offer professional help on all your legal matters.