We are always encouraging clients to review their Legacy Planning on a regular basis as the pitfalls of not getting the correct planning and documents in place can be scary! Without the correct planning in place, such as Wills, Trusts and Lasting Powers of Attorney, you leave the "What ifs" in life unanswered...
What if your spouse remarries after you've gone and their new partner has heirs of their own? What if their new partner outlives them? What happens to your children and grandchildren's inheritance then?
What if you leave money to a beneficiary who subsequently gets divorced? What if their ex-spouse remarries and has children with her new partner? What happens to your children and grandchildren's inheritance then?
What if you leave money to a beneficiary who is reliant on state benefits? Would the inheritance adversely affect them? Would their means tested state benefits be stopped?
We've said it time and time again... sorting out your Wills and Estate Planning is one of the most important things you should do... because life is full of what ifs...
And if you needed another good reason to sort your Legacy Planning out NOW instead of later...
Care Home Fees & "Deliberate Deprivation"
Avoid a mess - planning NOW is key!
If you leave sorting out your Wills and setting up Trusts etc until later life because "I'm not planning on going anywhere any time soon" it could be argued that you've put the planning in place for the wrong reasons... namely to avoid care home fees.
For example... you decide to move your property into a Lifetime Trust, to protect it from the costs and delays of probate, to maintain a bloodline inheritance for your children and your children's children and to ensure your beneficiaries have instant access to their inheritance. Two years later your health has deteriorated and you have to go into care. Your main asset, your property, is in a Trust and therefore does not form part of your Estate. You will therefore not have the funds in your estate to pay for your own care. The Local Authority will look into this and are likely to argue that you deliberately deprived yourself of your main asset, your property, in order to avoid care home fees. The fact that you only put the planning in place two years before going in to care will not help the situation! If the Local Authority can prove your motivation for moving the assets into a Trust was to avoid care home fees they can and will overturn the planning and the asset within the Trust will be exposed.
The best thing you can do to avoid this all to common situation is to put your planning in place NOW (sooner rather than later) and do it for all the right reasons - preserving your wealth for your family's future! The earlier on in life that you do your Legacy Planning the better... And the harder it makes it for the Local Authority to argue that you knew you would need care and support and deliberately moved your assets to reduce the value of your estate to avoid care home fees.
There are so many reasons why getting your Legacy Plan in place is of such a great importance (and you can click the link below to read more). The last thing you want is for the planning that you put in place to protect your family's future and inheritance to be overturned to pay for your future care home fees.
Come and see our in-house Barrister Intermediary Sarah Peate who will carry out your personal Legacy Planning Review and help you get the correct planning in place which is suitable for your circumstances and will give you the peace of mind that your family's inheritance is protected.
Call or email us today to book an appointment:
01527 836 836