Which type of planning...

In simple terms, making a Will gives you a choice over how assets are distributed so it forms the bedrock on any estate plan.

Unfortunately, there are laws in place that dictate where assets end up if you die without a Will, called the rules of intestacy, and the result may not be the way that you would have wished your money and possessions to be distributed  - so it makes sense to officially record your wishes.

Unmarried partners and partners who have not registered a civil partnership cannot inherit from each other unless there is a Will, so the death of one partner may create serious financial problems for the remaining partner.

For anyone who has children under 18, it is strongly advised that a Will is made so that arrangements called Guardianships for the children can be made if either one, or both, parents die. Without this in place the courts will decide who looks after your children.

However, the rigidity of a Will can sometimes be too much for modern life, which is why so many families use simple trusts in their planning. 

The main reason why so many people include a Trust in their Wills these days is to give flexibility to their planning and some simple Will Trust arrangement can mitigate assets being lost from care fees. Trusts also provide protection against something that might happen or be happening in their beneficiaries’ lives that might damage the inheritance such as divorce if set up at the right time, becoming reliant on state benefits or suffering from an addiction or financial hardship.

They are also a fantastic inheritance tax mitigation tool for the next generation.

A simple Trust incorporated in a Will doesn't cost much more that the Will itself,  but it can save many thousands of pounds and gives valuable peace of mind.  

Family Trusts, which are set up during someone's lifetime, are powerful tools and will do all that a trust in a Will can do. But, in addition, they can also provide peace of mind from scammers targeting an elderly relatives home or, if set up at the right time, will prevent a challenge to the estate from an excluded beneficiary being successful.   

It is worth noting, that with both types of Trust, the timing of the planning is crucial and leaving planning too late can nullify the power of the Trust.  

A Lasting Power of Attorney (‘LPA’) is a legal document that is completed and signed by everyone involved, witnessed and then registered with the Office of the Public Guardian.

Once it is has been registered, the LPA enables someone you trust to be appointed to make decisions on your behalf about your finances, property and personal welfare. They will be legally able to take over should you become physically or mentally incapacitated or if you just need a bit of help.

There are two types of LPA:

Property and Affairs LPA:  This allows your Attorney(s) to make decisions on your behalf about your property and affairs, for example in paying bills.

Health and Welfare LPA: This allows your Attorney(s) to make decisions on your behalf about your personal welfare, for example in being able to talk to doctors.

Unfortunately, should you suffer a loss of capacity without LPAs in place, a decision will be made for you by the state until someone you trust makes an application to the Court of Protection for a Deputyship order - and that takes between 4 and 9 months and often costs in excess of £2,500.