A Guide to Setting Up Trusts to Protect Your Assets

Whilst most people are familiar with the process of writing wills so that their wishes can be expressed in the event of death, Trusts remain relatively uncommon even though they present many benefits and can be a great way to protect your assets and estate.

There are many reasons why it might be a good idea to consider the formation of a Trust, even if you feel as if the assets you are in possession of are minimal or if you believe that your will already fully represents your wishes.

What is A Trust?

A Trust is considered to be a way of actively managing a range of assets including money, property, land or other valuable assets. It is important to remember that there are several different types of Trust, all of which are taxed differently, making some more suitable than others depending on your requirements. Unlike a will which must proceed through probate after death, a Trust can be called into action immediately.

The two most common types of Trust include;

• The Discretionary Trust – A common way to minimise inheritance tax by maximising the inheritance tax allowances of unmarried couples for the benefit of their intended beneficiaries.
• The Lifetime Trust – A common way to transfer the ownership of assets to other entities whilst still maintaining control over them as well as the benefits they provide.

The Parties Involved

Trusts usually involve three parties who hold a specific title under the Trust. It is also possible for one individual to be named under several of these titles if required.

• The settler is the individual who places assets into a Trust for the purpose of protection.
• The trustee is the individual who manages the trust and the assets contained within it.
• The beneficiary is the individual who stands to benefit from any assets contained within the Trust.

A Lifetime Trust for example would usually see one individual named as all three parties if they were attempting to minimise their tax liability whilst receiving an income or dividend payments.

Common Reasons for Setting Up a Trust

As mentioned, there are several other reasons why someone might wish to establish a Trust which include:

• The control and protection of important family assets which need to remain within the family.
• When a young member of the family has inherited a large sum of money but is incapable of handling their affairs.
• When someone has been incapacitated and can no longer handle their affairs.
• The passing on off assets to another party whilst still alive.
• When someone is considered to be vulnerable due to disability or when someone under the age of 18 has experienced the death of a parent.

Establish Your Trust

Heritage Wills are well versed is establishing both Discretionary and Lifetime Trusts. We have the knowledge and expertise to advise further on these matters as well as to assist you in establishing powers of attorney if required. For further information, speak to a member of our team on 01603 894500 who will be to advise further on the different options available.

Donating to Charity Through the Use of Wills

Many of us hold the work of charities and charitable organisations close to our hearts. It might be the case that we have directly benefited from the services they provide or simply acknowledge and admire the work they perform.

Leaving or donating money and other gifts to a charity in the event of death is a very popular option which many people choose to take advantage of. There are also several financial benefits to doing so which may make the decision easier.

The Process of Donating to Charity

If you don’t already have a will, this is great opportunity to communicate your wishes and to nominate the charity that you wish to benefit on your death. In the event that you already have a will, you will need to request an amendment with the entity who helped you to write it originally.

Depending on your charity of choice, they will usually recommend that you use a specific statement to express your desires to donate any assets to them in your will. This information is usually readily available on their website but if it isn’t, we would suggest contacting them personally or requesting your will writer to do so on your behalf.

It will also help to include the following information;

• The full name of the charity to benefit from your donation.
• The charity registration number of the charity in question as well as their registered address.
• A merger clause in the event the charity you wish to donate to ceases to exist or has merged with another charity. In these instances, you can elect that a charity with similar values benefits instead.

Setting up Charitable Trusts

Another option is to establish a Trust in your name which is dedicated to carrying out charitable work on your behalf. As part of this process, you can directly gift assets to a charity of your choice or use the Trust as a vehicle for donations to a series of good causes.

Another option could involve appointing powers of attorney who can preside over your financial affairs and donate to charitable causes on your behalf.

The Tax Benefits of Donating to Charity

Donating money to a charity has the ability to reduce the overall inheritance tax liability of your estate, sometimes even eliminating it entirely. This works by;

• Reducing the total taxable amount of your estate by ringfencing some of it as a donation. This donation will be tax free and will ensure that whatever is left over will incur less inheritance tax.
• In addition, the rate of overall taxation can be reduced from 40% to 36% if you were to donate 10% of your net estate.

Once probate has begun and provided there are sufficient assets after debts and liabilities are paid, your donation will be made before the rest of the estate is divided up.

Further Advice on Nominating a Charity in Your Will

Tax law can be complicated so we would suggest seeking further advice on donating to charities through your will. To discuss this matter further, speak to Heritage Wills by calling us on 01603 894500 so that we can offer more personalised advice.

The Benefits of Using a Will Writing Service 

Ensuring that your wishes have been documented and will be carried out in the event of your death is vital for everyone of adult age, regardless of your personal wealth or whether you consider yourself to be young or old. But what is also important is making sure that your will has been drafted in accordance with best practice guidelines, ensuring that there are no issues down the line when your estate enters into probate.

Rather than attempt to write your own will via a DIY service, making use of professional will writing services are always the better option, in turn providing you with the peace of mind that your will is both accurate and legally enforceable.

How a Will Writing Service Works

There are several options available to you when seeking the assistance in the drafting of a will. The most common include:

• Attending a scheduled appointment at the offices of the company performing your will writing services.
• Scheduling a home visit where a qualified professional consultant will visit you at your home address at a time to suit you.
• Online via the use of a portal where you will be requested to input vital information regarding your personal circumstances which will then be interpreted and formed into a will.
• Via the use of postal forms which will be sent to you for completion. Once returned, the information included on these forms will form the basis of your will.

We would always suggest making use of face to face service which is the best opportunity to make sure that your wishes are accurately communicated. When a professional will writing consultant visits your home, they will ask you a number of questions including:

• Who you would like to nominate as your executor.
• The total of your assets to be administered under the will.
• Who you would like to benefit under your will as well as how and to what proportions.
• Whether you would like to appoint powers of attorney.

Once your will has been finalised and approved, you can then request to have it stored safely on your behalf.

The Advantages

The benefits of transferring the responsibility of drafting your will to a specialist has many benefits which include;

• Companies experienced in writing wills will usually provide you with a very quick turnaround, often no more than 4 to 6 weeks from the date of your initial consultation.
• Costs are very competitive and are usually much cheaper than a solicitor. You will also find that costs are often fixed regardless of whether you are visited at home or you attend an appointment yourself.
• In house legal teams will ensure that your will complies with the law and has been written following the appropriate guidelines.

Have your Personal Will Written on Your Behalf

Heritage Wills are experienced in the drafting and formation of wills for customers of all backgrounds, regardless of your personal circumstances. Whether you would like more information on Trusts or would like to schedule an appointment, you can speak to a member of our team on 01603 894500.

What Age Should I Write My Will

As a young person in the U.K, the process of planning for your death probably hasn’t crossed your mind. It’s a difficult subject and even as time creeps on, most of us don’t like to consider our own mortality. As grim a topic as it may be, subjects such as wills and powers of attorney do need to be considered so that there are no tangled legal battles in the event of your death. And every now again we get an unfortunate reminder that life is short, and you never know when your time is up. There are certain times that are a good milestone when you should look into having a will written to ensure your loved ones are looked after. So, what are these?

1. Buying your first home in East Anglia

If you are in the process of buying a new home, this is likely one of the first things of significant value that you invest in and you need to specify who will inherit when the time comes. Any change in the value of your home will also affect your family members and what is being left to them, so having it laid out legally makes sense.

2. Getting married

At this happy time, you probably don’t want to think of one or other of you ever dying. But your spouse is also likely to be the chief beneficiary of your estate, so it’s important to get that down on paper and save them an awful lot of stress in the event of your demise.

Wills made before marriage are also often cancelled on marriage so it’s a good time to update your documents in any event.

If it’s a second marriage, then you need to update your will to reflect your new spouse and also plan out how property will be divided between children from your first marriage and any children from this new relationship.

3. When you have children

If you haven’t a will in place before now, this is the time. Your love for your first-born will mean that you will always want them to be provided for. If you die without a will, your children will be entitled to a portion of your estate, but it may not be divided up the way you’d like it to be. If you die before your children reach adulthood, you will have a guardian named in your will. If you haven’t made a will, then the court may decide that someone else is legally responsible for your children. You may wish to set up trusts in your children’s names or give them powers of attorney in case you become incapacitated.

Expert Will Writers

These things will vary from one person to another, but once you own anything of value and have any relationships that are significant, you should consider writing your will. Heritage Will Writers have provided this valuable service in the East and South East of England to thousands of happy customers and all our Will Drafters are STEP qualified.

Our Head office is located at 13 Hellesdon Park Road, Drayton High Road, Norwich, NR6 5DR. We also have offices in Boston, Bishop’s Stortford, Cambridge, Lincoln, Royston and Southampton. If you’d like to know more about writing your will, call Heritage Will Writers today on 01603 894 500.

Dying Without a Will: What Happens to Your Assets?

When you die without a will this is known as intestacy, and if you live in England there are certain rules that the court will follow to divide up your assets. These rules can be very strict, with the line of inheritance following a pattern, which means lots of legal cases are heard each year due to people dying intestate. If you don’t have a will, it’s important to know what will happen to your assets, and for most people this is a great motivator to have a will written.

Married and unmarried couples

If you have a long-term partner and you die, your partner isn’t legally entitled to anything, and it doesn’t matter how long you’ve been together or whether you’ve co-habited. Those who choose not to marry should look at getting wills made, as there have been cases where all the deceased’s assets have automatically gone to the children, leaving the partner with a legal fight on their hands.

Married couples will usually inherit their deceased spouse’s assets automatically, and under English law your children might not be entitled to anything. If you want your children or grandchildren to inherit anything, this has to be set out in a will to ensure your wishes are followed.

Inheritance tax

With property prices on the rise, more and more people are becoming aware of inheritance tax and how much it could cost their dependents. If you die without a will, more inheritance may become due, whereas if you organise things in advance there are certain trusts which aren’t liable for the tax. Get tax advice before drawing up a will.

Unclaimed estates

For those who die without any obvious descendants, there’s a process to go through where the government will try to track down any surviving relatives. This could include:

• Grandparents
• Siblings and half-siblings
• Aunts and uncles
• Half-aunts and half-uncles
• Adopted relatives

If none of these can be found, then the estate goes to the crown, and in 2017 about £8 million worth of assets were given this way. This probate process can be long and complicated, with distant relatives having to stake a claim. If you don’t have any obvious heirs, then it’s important to make a will. You may wish to leave the money to a friend, or even give it to a charity, and with a legal will in place you can be sure your wishes are kept.

Saving your family hassle

Even if your estate is simply going to be divided between children, if you die without a will then the process can be much more complex. It can take longer to get a grant of administration, which allows for distribution of assets, and can mean there’s even more paperwork and hassle to deal with. Therefore, it makes sense to create a will, even a simple one, to save a lot of stress.

Heritage Wills offer an easy will writing service across East Anglia and the Midlands, visiting you at home for your convenience. Simply call 01603 894500 or e-mail admin@heritagewills.co.uk to book an appointment or find out more.

Why You Should Write a Will

Our mortality may not be a subject we always want to engage with, but writing a will is a crucial task for everyone. Once you have given serious thought to whom you would like to leave your money, possessions and property to in the event of your death, it’s a relatively simple process to make a legally binding will that will give you the peace of mind of knowing that your final wishes will be carried out to your satisfaction.

Minimise stress

Losing a loved one is one of the hardest experiences any family member has to go through and this emotional pain is only made worse in situations where wills have not been made. Making sure your last wishes are clearly defined, legally binding and up to date is the only way to take this bureaucratic stress away from your family.

Make sure your wishes are carried out 

Whether you are dealing with sizeable trusts or small personal possessions, it’s incredibly important to make sure that your worldly goods are passed on exactly as you would wish them to be. Not only will this prevent added emotional pain to those surviving, it means that you can be sure your final wishes will be carried out. If you do not make a will, your estate will be divided according to the law, which may not be in allegiance with your wishes.

Appoint an Executor and Power of Attorney

It’s crucial to appoint someone you trust to be the executor of your will. This person will be responsible for organising your estate and following the instructions you leave with regard both to inheritance and your funeral arrangements. You can appoint a professional executor but many people choose to name a close relative like a spouse or civil partner as it is possible for your executor to be a beneficiary of your will.  That said, some people choose another trusted relative or friend to take away this administrative burden at a time of grieving. Powers of attorney is another important role you need to get covered. Giving a trusted family member power of attorney generates a legal document that allows them to make legal, business and financial decisions on your behalf should you become incapacitated.

Provide for your dependents 

Making a will is an important task for everyone, but it’s a particularly crucial task to complete if you have a spouse, children or other family members who depend on you financially. Not only does failing to leave a will mean your estate may not be divided as you would wish, it can also increase any inheritance tax bill. Also, if you are in a situation where you do not wish your immediate family to benefit from your will, it is equally important to make sure your wishes are legally set down according to the legally binding rules of probate. 

For a friendly and professional will writing service, contact Heritage Will Writers on 01603894500 to arrange a free home visit.

What you need to know about probate

What is probate? It is the legal process of transferring of property upon a person’s death. When creating wills, we set out our intentions as to how our property is to be distributed and perhaps how certain debts shall be paid, or if trusts need to be set up. Throughout the years, the laws have changed but the purpose of probate remains the same, and in most circumstances it is an easy process. 

The probate process 

When making a last will and testament, you appoint someone you trust as executor of that will so that they can carry out the instructions laid out therein. The executor presents the will to a local court in the country where the decedent (the person who died) lived. If you have not provided a will, then someone will need to apply to the court to be appointed as the administrator of your estate. This is usually the spouse or child of the decedent, so if neither of these are preferable, or you’d prefer not to give them the responsibility, then you can also appoint powers of attorney to other trusted individuals who can help with the administration of your estate after you’re gone. 

What is covered in probate? 

Any property owned by the person at death is subject to the probate process. If you’ve heard the term “probating a will” – this refers to the process where it is demonstrated that the decedent followed proper legal formalities when they drafted their will. This is to ensure that the decedent was in no way influenced when preparing their will, and that they had sufficient mental capacity at the time of writing it to make decisions of this stature. The basics of what happens in and outside the courtroom are as follows:

• All probate property of the decedent must be collected
• Any debts or taxes outstanding by the estate must be settled
• All right’s to income, dividends, life assurance policies etc. must be collected
• All claims or disputes must be settled
• The remaining property is distributed to the heirs, either named in the will or by the court

Can the probate process be contested?

Often the process is left uncontested, when a will has been prepared and the details laid out simply. This also happens regularly when there isn’t a large amount of property to be distributed. However, the probate process can be contested when one heir is seeking a larger share of the decedent’s property than they have initially been instructed to receive. In these cases, the disgruntled party will often suggest that the decedent didn’t follow the necessary formalities when drafting their will, or that they may have been improperly influenced by another heir. Creditor’s can also make a claim on the estate of the deceased. 

Is it an expensive process?

A number of fees apply to the process and it can prove quite costly after solicitor’s fees, court fees and the fees of those involved. The probatesystem does exist to protect all parties but it can also be avoided. Before death, one can distribute gifts, set up trusts or set out joint ownership so that their property goes to the surviving party. 

In order to avoid a lengthy probate process, it’s best to have your will in order, so call Heritage Will Writers on 01603894500 for assistance today.

3 Things All Pet Owners Should Consider When Making a Will

For many, pets are an integral part of family life. In fact, around 44 percent of all households have a pet of some description, according to figures collated by the Pet Food Manufacturers’ Association. 

No matter the type of pet you have, you’ve probably developed a strong emotional bond with it over the years and have come to see it as part of the family. With this in mind, it’s important to consider what would happen to your animal companion if you were to pass away and factor in your pet’s care plans when creating a will. 

Here at Heritage Wills, we’re proud to offer an industry leading will writing service catering to people across the south and southeast of England. If you want to ensure your pet is financially provided for and left in caring hands after you’re gone, here are a few things to consider: 

1. Decide Who to Leave Your Pet to 

One of the most critical things to take into consideration is who you would ideally like to leave your pet to. For most people, this might be a relative or a close friend, but keep in mind that a passion for animals doesn’t automatically make someone the right choice. Housing can have a big impact on suitability, as can the amount of free time the prospective carer can dedicate to your pet. Similarly, allergies, lack of mobility and financial stability should also be taken into consideration. Be sure to have an open and honest discussion with the prospective carer before writing them into your will. 

2. Creating a Trust for Your Pet 

As a pet owner, you’re probably well aware that keeping your animal companion happy and healthy can be expensive. Indeed, the lifetime cost of a medium sized dog breed is estimated to be around £10,000! 

To avoid putting a financial burden on the person you choose to leave your pet to, some people decide to set up a trust that covers the future expenses of caring for your pet. To calculate an appropriate amount to put into the trust, think about your pet’s typical annual food and medical expenses. Top it up with some extra funds to cover the additional medical fees that most pet owners face as their pet ages. 

3. Ensure Provisions are Set Out in Your Will 

As with all other aspects of your will, it’s critical that your intentions are clearly set out in writing to eliminate any ambiguities. Set provisions in your will that state who you wish to take care of your pet and the details of your pet’s trust fund (if you have one). This is a relatively simple matter, but it does provide you with greater peace of mind knowing that your beloved pet will be looked after by someone you trust. 

Heritage Wills is the will writing service you can trust. Give us a call today for a no-obligation chat to discuss your options.

3 Reasons You Need a Will – Even if You Have No Assets 

One of the most common myths in the will writing industry is that a will is only necessary if you have a lot of valuable assets to your name. On one level, this concept is somewhat logical – after all, if you don’t own property or have thousands of pounds in your bank account, what is there to bequeath in the event of your passing? 

However, the reality is that just about every person in the UK will have something of value to leave behind and a will is vital for ensuring these assets are passed down legally and in line with your wishes. In addition, there’s a very good chance that you have some things that may hold a lot of sentimental meaning, even if they’re not particularly valuable. A will ensures these treasured keepsakes are well cared for in the years ahead. 

Here are three reasons why everyone needs a will, even if you have no assets: 

1. Appoint Someone to Handle Your Funeral 

It is a bit morbid to think of your own mortality, but the fact remains that you need to be mindful of practical matters when writing your will. This includes – among other things – naming an executor, who is typically tasked with arranging your funeral and sorting other pragmatic issues such as closing banks accounts, dealing with your taxes and so on. Remember that an executor doesn’t necessarily have to be your closest loved one; instead, choose someone who will be able to stay level headed and practical even while in mourning.

2. Bequeath Sentimental Possessions

Not every person will have a portfolio of properties or millions of pounds to leave behind, but just about everybody will have accumulated some beloved sentimental possessions over the course of their life. Whether it’s a special watch, heirloom jewellery, or an old family photograph, a will allows you to set out in writing what happens to your treasured belongings after your passing. This is a vital step if you have specific items that you wish to leave to a person outside your immediate family because, if you die without a will, your estate is shared out under the rules of intestacy.

3. Children and Pets

If you have a family, the most important reason to write a will is to set out what will happen to your children. In the tragic scenario that both parents pass away and leave young children behind, your choice of guardian will influence heavily in the judge’s decision when it comes times to appoint a guardian for your kids. If you’re a pet owner, a will is also critical for naming who you wish to take care of your pet. In both cases, it’s important