Planning For Later Life

Planning For Later Life - More Information

- What Is A Trust?
- A trust is a legal arrangement that manages money or assets for the benefit of specific people. When you set up a trust, you decide who will be in charge of the trust (the trustees) and who will benefit from it (the beneficiaries).
  
  Assets can still generate income once they have been placed in a trust. Properties can still charge rent, shares still collect dividends, and money can still generate interest. This income can either stay in the trust or be paid to beneficiaries.
  
  Assets may increase or decrease in value while in a trust – it is the trustees’ responsibility to manage this in the beneficiaries’ best interest.
  
  As such, trusts do sometimes have to pay tax. However, it can be more tax-efficient to put assets in a trust and receive income as a beneficiary than it is to receive the income directly.
- What Is Inheritance Tax (IHT)?
- Inheritance Tax (IHT) is a tax on the value of the assets that you own – your estate - when you die.
  
  If you have a life interest or right to income in certain types of trusts, IHT can sometimes apply to these trusts’ assets as well. It can also be charged on any gifts to a trust that you’ve made in your lifetime.
  
  IHT is taken from your estate before any assets are distributed between your successors. In some cases, certain assets might have to be sold to pay the tax.
  
  There are a number of reliefs and allowances that reduce the amount of IHT that your estate must pay. For example, assets that you leave to a spouse or partner are exempt from IHT.
  
  We can help you make the most of these reliefs and allowances and ensure that your successors can benefit from as much of your estate as possible. Contact us online to find out more.
- What Happens If I Don’t Plan For Care Home Fees?
- Unless you become very ill, it’s likely you’ll have to pay for most or even all of your care home costs. If you don’t plan for possible fees you can’t be sure how your estate will be affected in the future.
  
  Some of the consequences might be:
  - You have to sell your home to pay for fees
  - Your loved ones won’t get the inheritance you wanted to give them
  - You can’t take advantage of state support you should be eligible for.
  We can help you plan now so that both you and your loved ones are looked after for the future. Call today on 0370 1500 100, or use our online form and we’ll call you back.
- What Should I Think About When Making My Will?
- Everyone’s circumstances are different, but some of the things to consider when making a Will are:
  - The value of your estate – inheritance tax (IHT) is generally due on anything over the £325,000 threshold (£650,000 for married couples and civil partners) once mortgage and other debts are deducted
  - A new IHT allowance of £125,000 may apply if you own a property and leave some of your estate to relatives like children and grandchildren.
  - How you own your assets – if you co-own property with your spouse, the type of tenancy you have will affect whether or not they can continue to live there after your death
  - Who you want to leave your assets to (i.e. your beneficiaries)
  - Who you would like to be the executors of your estate
  - Whether some assets would be best placed in a trust for asset protection purposes.
  These are important decisions to make and you should seek legal advice to make sure your estate is structured in the best way for you and your beneficiaries.
  
  Read through our Wills Checklist to see if you’ve got everything covered.
- Why Should I Make A Lasting Power of Attorney (LPA)?
- If you don’t have a Lasting Power of Attorney in place it may be hard for your loved ones to know what to do if something happens to you, or you lose capacity.
  
  Without knowing your wishes, they may find it difficult to manage your affairs and property, and they might not know what medical treatment you do or don’t want.
  
  They might have to apply to the Court of Protection for a deputyship order so that they can take charge of your finances and make decisions on your behalf about the care you receive.
  
  This can be expensive and time-consuming, and everyone might not agree about who should have control and what decisions should be made.
  
  By making an LPA now, you can prepare for the future and make sure your wishes are respected.

Irwin Mitchell are a very professional, trustworthy and straightforward company to deal with. I would recommend them to anyone."

Frank Clayton, client

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Planning For Later Life

Later Life Packages

For general enquiries

Elderly Care Crisis: A Tipping Point

Frequently Asked Questions

What Is Estate Planning?

When Do You Need To Review Your Will?

What Powers Does An Attorney Have?

Related Information - Planning For Later Life

About Irwin Mitchell

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