New Year Estate Planning

The New Year often inspires a renewed focus on organisation, stability and setting both short and long term goals. However there’s one resolution that can bring real peace of mind: getting your legal and financial affairs in order.

Taking steps now not only protects you but also provides clarity and peace of mind for your loved ones. Here are our practical steps to get your affairs in order this New Year.

Make or update an existing Will

Life moves fast, and your Will should evolve alongside any changes in your personal and financial circumstances. Without having a Will in place, strict intestacy rules determine who is to inherit your estate, often in ways which would not naturally reflect your wishes.

Why does having a Will matter?

• You decide who inherits your estate when you die.
• You choose who you would like to appoint as your executors to manage and administer your estate – the people that you trust the most.
• You can appoint a guardian for any minor children.
• You can make specific gifts, protect vulnerable beneficiaries and children and express any funeral wishes you may have.
• You can plan your estate in a tax-efficient manner.

If you already have a Will, the New Year is an ideal time to review it and ensure that it still reflects your current wishes and life circumstances. It is particularly important to review a Will if you have experienced a major life event, the arrival of any children or grandchildren, a change in financial circumstances or property ownership, or there is any change in your preferences for any executors, legal guardians or beneficiaries.

Lasting Powers of Attorney

Lasting Powers of Attorney (LPAs) allow you to choose who will make decisions on your behalf if you become unable to do so.  It is important to highlight that LPAs are not just for elderly people. They are a useful planning tool for adults of any age as unexpected circumstances, such as accidents, illness, age related conditions or temporary incapacity can happen at any time. Therefore it is important that LPAs are put in place sooner rather than later. An LPA can also be useful for those running a business to ensure that the business is able to continue operating in unforeseen circumstances.

There are two types of LPA available: Property and Financial Affairs LPA and Health and Welfare LPA. A Property and Financial Affairs LPA covers matters such as managing bank accounts and financial investments, paying bills and dealing with property, while a Health and Welfare LPA allows your chosen attorneys to make decisions on medical treatment, care and living arrangements.

Without an LPA in place, those closest to you may need to apply to the Court of Protection to obtain the relevant authority to make decisions on your behalf. Without LPAs in place, this can be a costly and time-consuming process for your loved ones.

Estate and Inheritance Tax Planning

It is important to ensure that your estate is structed as efficiently as possible for inheritance tax (IHT) purposes. With rising property values and frozen IHT thresholds, more estates will fall above the thresholds and become liable to paying IHT.

From 6 April 2027, pensions will no longer be exempt from an estate for IHT purposes, which will affect those individuals with significant pension wealth. For further information, please see: Changes to Pensions and Inheritance Tax from 2027 | David Gray LLP. With these reforms rapidly approaching, it is a perfect time to review your existing pension arrangements and consider how these changes may impact your estate.

With smart and effective planning, such as receiving tailored advice on the thresholds available to you, gifting strategies and ensuring your Will reflects your wishes, this can make a big difference to what your loved ones receive from you.

Care Fees Planning

The costs of future care is a growing concern for many, particularly where a property or savings are involved. While there is no single solution, planning ahead helps you understand how care fees are assessed, what funding options may be available and how your assets might be treated if care is needed in the future.

By obtaining early advice, this allows you to explore your options, ensure early planning is done properly and lawfully and ensures that your wishes are respected if care is ever required. As a whole, early planning will provide you with greater certainty and control over your long-term arrangements.

Contact Us

By putting the right provisions in place now, this protects you, your family and your future and can save significant time, stress and unnecessary expense for your loved ones. If you require any assistance with getting your legal and financial affairs in order, our Private Client team is available to assist you through the process. If you wish to book an appointment, please contact Meghan Roseblade on 0191 232 9547.