In our initial free meeting, we discussed Roger and Tracy’s estate planning goals. They had just retired. We discussed their aims and objectives.
Their aim was to put in place key legal protection documents so that they would not have to revisit the documents for some time and so that they were protected, and their family would be protected. We discussed Wills, Lasting Powers of Attorney and Asset Protection Trusts.
The clients had three major concerns. The first was that their daughter’s marriage may end in divorce and that if this happened their son in law could potentially take part of their hard earned capital. Their second major concern was that their son’s business may fail in the future and that their part of their capital could potentially be taken by creditors. The third issue was that a great proportion of their capital could be eaten up by care home fees.
We worked with the clients to put in place Wills. Each Will had a legal statement prepared alongside it to explain why the Wills had been prepared on the terms that they had. The Wills contained trusts to ensure that there was flexibility, and rather than the son and daughter inherit absolutely, for their shares of their parents estate to be held within a trust structure so that if they were going through a divorce or financial difficulties, their shares of the estate could be held and protected within the trust until those situations had been resolved.
We put in place Lasting Powers of Attorney for both health and welfare decisions and property and financial affairs. We appointed the spouse as sole Attorney. We appointed their children as Replacement Attorneys to include succession planning to the documents.
We put an Asset Protection Trust in place and settled their property (matrimonial home) into trust. This type of trust allows Roger and Tracy to maintain full control of their property during their lifetimes as Trustees and secures their right to live in it, or receive income from it, but protects the capital for the potential beneficiaries (son and daughter). More importantly once the assets pass into the trust their daughter’s spouse would not be able to make a claim against those assets in the case of a divorce. In addition, her son’s business creditors would not be able to make a claim on the assets.
Another benefit of trust is that Roger and Tracy could potentially mitigate care home fees as it is no longer a capital asset in their estate. Finally, future generations such as Roger and Tracy’s grandchildren may be able to use the trusts as a vehicle to protect assets for themselves.
In our initial free meeting, we discussed Peter’s estate planning goals. He is working hard within his own business to pass on a decent estate and inheritance to his 5 children, who remain his focus . He wants to protect his estate for his children. His children are minors, and he does not want them to inherit his estate until they are sensible to deal with the money themselves.
His aim was to put in place key legal protection documents so that he would not have to revisit the documents for some time and so that he and his children would be protected. We discussed Wills, Inheritance Tax Advice, Lasting Powers of Attorney and Business Protection.
We worked with the client to put in place a Will. His Will meant he was in charge of appointing Executors (the people who take control of his estate). We created a business protection trust, which utilised business property relief (a relief to inheritance tax). Our client appointed trusted people (Trustees) to deal with his business interests. His children and grandchildren were named as potential beneficiaries of his business interests under the trust. His Will appointed guardians for his children. It also
enabled him to gift the rest of his estate to his children but create a trust to state that his children inherit absolutely at the age of 25 (rather than 18 as the law dictates). His Will had a legal statement prepared alongside it to explain why the Will had been prepared on the terms that it had, and the clients wishes in respect of the trust relating to his business interests, and in what circumstances he would like his children’s inheritance released to them before they are 25, under the power to release funds for their maintenance, education, or benefit.
We put in place Lasting Powers of Attorney for both health and welfare decisions and property and financial affairs. On the financial power of attorney, we made a personal one for the client, but also a business power of attorney that appointed people to specifically deal with his business interests only.
We assisted Peter to obtain key person insurance to pay out on his death and to nominate it into trust for a person to be employed to deal and finalise his business when he is not here to do so. This enables his estate to maximise the potential for his business and to obtain its proper value to his estate, to pass onto his children.
In our initial free meeting, we discussed Sarah and Michael’s estate planning goals. They have a home together, held as joint tenants. They both have 1 child each to previous relationships. They are committed to each other and do not plan on getting married.
Their aims are to protect each other, but they also want to ensure their respective children receive an inheritance.
Their aims were to put in place key legal protection documents so that they would not have to revisit the documents for some time and so that they protected each other and that their children would be protected. We discussed Wills, containing a right to reside trust, property ownership and a Deed of Severance and Lasting Powers of Attorney.
We discussed their relationship. Whilst in a committed relationship, the law does not recognise ther relationship and so without a Will, the survivor gets no right to administer the estate, or receive the estate. A Will is a must have document.
We discussed the property ownership. Property held jointly as joint tenants passes automatically by survivorship to the survivor. The house was their main asset and they wanted to secure their half shares for their children. We severed the joint ownership by Deed of Severance so that the clients held the property 50:50 as Tenants in Common and could pass their respective shares according to their Wills.
We worked with the clients to put in place Wills. Under their Wills we did some planning with the property. We put ther 50% share of the property into a right to reside trust. Giving the survivor a right to live in it for life, or until certain conditions are met (such as cohabiting with a new partner). At such point, the right to reside trust ends and their 50% capital is passed to their children. This planning gave the survivor the security of being able to live in the property, but the capital is protected for the children. The rest of the estate passed to the survivor, and then onto the children at 21. This satisfied the clients aims and ensured their children receive their share of the house.
Their Will appointed guardians for their children. It also enabled them to gift the rest of their estate on second death to their children but create a trust to state that their children inherit absolutely at the age of 21 (rather than 18 as the law dictates).
Their Wills had a legal statement prepared alongside them to explain why the Wills had been prepared on the terms that they had, and the clients wishes in respect of the trust relating to the property, and in what circumstances they would like their children’s inheritance released to them before they are 21, under the power to release funds for their maintenance, education, or benefit.
We put in place Lasting Powers of Attorney for both health and welfare decisions and property and financial affairs. This ensured that they were given legal permission and recognition to deal with each other’s assets and health decisions if required