For over 125 years, the award-winning Wills, Trusts and Estates Team at Sintons has worked tirelessly to help its clients to manage and protect their assets for current and future generations.
It is recognised nationally for its specialism and its endorsement by both the Legal 500 and Chambers & Partners High Net Worth Guide provides independent evidence of its capability and the outstanding level of service it offers.
The key message from the team is that planning for the future is crucial at any stage of life. Organising your affairs ensures your wishes are honoured, your loved ones are protected, and your assets are managed effectively.
Here are four key steps to guide you:
1. Preparing a Will
A will is crucial for determining how your estate should be distributed. A clear will simplifies estate administration and can reduce the amount of taxes and fees payable on your death.
Without a will, your estate would be distributed according to intestacy laws – potentially to people that you would not want to benefit and missing out family and friends that you would like to receive something.
If you already have a will, regularly reviewing and updating it will ensure your current situation and wishes are reflected accurately.
2. Making Lasting Powers of Attorney
Creating lasting powers of attorney (LPAs) is a vital part of future planning. These documents empower trusted individuals, known as your attorneys, to handle your affairs if you become unable to make decisions yourself.
There are two main types:
Property and Financial Affairs LPA: this authorises your attorneys to manage your financial matters, such as paying your bills, handling your investments, and dealing with your property.
Health and Welfare LPA: this authorises your attorneys to make decisions about your medical care, daily routine and personal welfare.
LPAs act as a safeguard, ensuring your interests are protected if you lose capacity. It is crucial to set these up while you are still fully capable.
3. Estate Planning
A thorough estate plan is essential for managing your financial future. Key components include:
Maximising Exemptions and Reliefs: Utilise spousal exemptions and other inheritance tax (IHT) reliefs such as business relief and agricultural relief to minimise IHT.
Lifetime Gifting: Gifts can be exempt from IHT if you survive seven years after making them. Some gifts, like those covered by the annual exemptions (currently £3,000) and those paid out of surplus income, are immediately exempt. Charitable gifts are always free from IHT.
Pension Contributions: Pensions are generally exempt from IHT, making them a tax-efficient way to transfer wealth. However, it is important that the documents behind the pensions are completed correctly in order to achieve this.
4. Utilising Trusts
Trusts are a powerful tool for managing and protecting your assets. They allow you to set specific terms for the distribution of your assets, which can help preserve wealth across generations and ensure your wishes are met.
Asset Protection: Trusts can safeguard your assets from potential future claims or creditors.
Controlled Distribution: You can stipulate conditions under which beneficiaries receive their inheritance, which is useful in complex family situations or to prevent misuse.
Tax Benefits: Well-structured trusts can reduce estate taxes, ensuring more wealth is passed to your beneficiaries.
Planning for the future is a wise decision at any age. Taking these steps now will provide peace of mind and secure your legacy for the future.
To find out more about wills, trusts and estates, or to make an appointment with the team, please contact them on 0191 226 7878 or visit www.sintons.co.uk