Spooky Facts and Scary Truths: Estate Planning Assumptions That Can Come Back to Haunt You

Around Halloween, we’re surrounded by ghost stories and things that go bump in the night. In our experience, some of the biggest scares come from common assumptions about Wills, Lasting Powers of Attorney and estate planning that simply aren’t true.

Here are some of the misconceptions we hear most often, and the scary truths behind them:

• We’re common law spouses, so we’ll have the same rights as a married couple

Scary Truth: Not necessarily.

Living together does not give you the same legal rights as a married couple or civil partners. If your partner dies without a Will, you may not automatically inherit anything under the intestacy rules.

A Will can help ensure your partner is provided for in accordance with your wishes.

• My family can deal with things if I lose capacity

Scary Truth: Not always.

Without a Lasting Power of Attorney (LPA), your loved ones may not automatically have the authority to manage your finances or make important decisions on your behalf.

If capacity is lost before an LPA is in place, a Court application may be needed, resulting in additional cost, delay and stress.

Putting an LPA in place early can make life much easier for those closest to you.

• If I give my house to my children, it will be protected from care fees

Scary Truth: There is no guaranteed shortcut.

Giving away your home or other assets does not automatically protect them from future care fee assessments. Local authorities can investigate whether assets were deliberately given away to avoid care costs and may still take them into account.

Seeking advice before making significant gifts can help you understand the potential consequences.

• Inheritance Tax only affects the very wealthy

Scary Truth: More estates are affected than many people realise.

When property, savings, investments and other assets are added together, the value of an estate can quickly exceed the available allowances.

Seeking advice can help you understand your position and any planning opportunities that may be available.

• My family will sort everything out between themselves

Scary Truth: Good intentions do not always prevent disputes.

Even close families can face difficulties when grief, finances and differing expectations collide. Problems often arise because wishes were never properly recorded.

An up-to-date Will can provide certainty and make things easier for your loved ones.

• I made a Will years ago, so I’m covered

Scary Truth: Your Will may not have kept pace with your life.

Marriage, divorce, children, property purchases and changing family circumstances can all affect whether your Will still reflects your wishes.

A Will that’s legally valid isn’t always a Will that’s still fit for purpose.

Contact our Estate Planning Solicitors

Don’t Let These Assumptions Come Back to Haunt You. The scariest estate planning stories rarely involve unusual circumstances or complex legal issues. More often, they happen because someone assumed everything would simply fall into place when the time came.

A regularly reviewed Will, appropriate Lasting Powers of Attorney and timely advice can help ensure your wishes are carried out and make things easier for those you care about most.

After all, estate planning is about providing peace of mind, not leaving behind a mystery for your loved ones to solve.

If you would like advice about Wills, Probate, Lasting Powers of Attorney or estate planning, our Private Client team would be happy to help, please call 0191 232 9547 to make an appointment or complete this form.