Wills & Lasting Powers of Attorney

Who would you trust to make health and financial decisions on your behalf should you be unable to do so yourself?  Without a Lasting Power of Attorney, these decisions will be made by a stranger – regardless of your relationship status.

A Lasting Power of Attorney (LPA) ensures that should you be unable to manage your own affairs, you have personally chosen trusted people to make these important decisions on your behalf.  This will ensure that, as a vulnerable person, your affairs will be handled quickly and correctly which will save a great deal of time, money and distress.

There are two types of LPA:

A ‘Property and Financial Affairs’ LPA allows your trusted person to pay your bills, buy and sell your property and manage your bank accounts and investments.

A ‘Health and Welfare’ LPA covers decisions about your health and care – even deciding where you should live – if you are incapable of making such decisions yourself.

According to the Alzeimer’s Society, more that one million people in the UK will suffer from dementia by 2025.  More than 1 in 5 people over the age of 85 already suffer from this, with rates significantly higher amongst women than in men.

Accidents, strokes, brain injuries and other degenerative brain conditions such as Parkinson’s Disease can also affect one’s ability to make decisions and handling your financial affairs might become impossible, which is why charities who care for the elderly recommend that everyone should plan ahead.

Risks of not having an LPA

Joint bank, building society and business accounts can be severely restricted if ONE of the account holders loses mental capacity and there is no registered LPA in place.   In this case,  your family would have to apply to the Court of Protection to appoint a Deputy to deal with your everyday financial matters.  This is a slow and expensive process, costing thousands of pounds.  If you need to involve a Lawyer, it could cost even more.  With an LPA in place, this will not be necessary.

The British Bank Association states “If one joint account holder loses mental capacity, banks and building societies can decide whether or not to temporarily restrict the use of the account to essential transactions only”. 

If your joint back account is frozen, how will your partner pay your mortgage, or your utilities bills or your car insurance?    Restrictions on a joint account can have serious implications because the joint owner cannot freely withdraw their own money without an order from the Court of Protection.

Don’t put your loved ones through this.  Make the decision today!

What will I have to pay?

Most of us work very hard over the years to buy our own homes and build up our savings for our retirement and would like to leave a “little something” for our children and grandchildren after we are gone.

Unfortunately, the costs involved in moving into a Care Home can literally wipe out your entire savings and your home may have to be sold to pay for care fees. This could mean that your loved ones could receive very little, or even nothing at all of what you originally intended them to have.

What can happen?

• Your home may have to be sold to pay for your Long Term Care costs.
• Your savings and investments could be wiped out.
• Any income would be assessed and used towards the cost of your care.
• Your children and grandchildren could lose their entire inheritance.

When someone enters care they are automatically “means tested” and all of your estate, including your home are taken into account. Only those who have very few assets will escape the cost of care.

Whatever assets we have, many of us would want them passed down to our children and grandchildren, so losing a property to care costs is a severe blow.

If you are concerned about what you intend to leave your loved ones, no matter your circumstances we are able to advise on all aspects of Care planning.

Assets not protected by a trust face attack from…

• Distributing assets absolutely to beneficiaries exposes those assets to risk.
• Creditors or bankruptcy claims.
• The divorce or separation settlements of future generations.
• Further Inheritance Tax bills.

Without the correct “Bloodline Planning” some, or all of your children’s or grandchildren’s (bloodline’s) inheritance could be lost.

How can I protect my children’s inheritance?

Protecting your inheritance for future generations is commonly referred to as “Bloodline Planning”.

Bloodline Planning is ensuring that your assets reach your children, grandchildren and other relatives, rather than ending up in the wrong hands!

When assets are distributed to beneficiaries “absolutely”, (i.e. they receive cash, property or other assets as a direct lump sum payment) so much can be lost. These assets are then considered to be part of the beneficiary’s estate and would be at risk of attack from any future divorce settlements, creditors and taxation.

The strategic use of Trusts can ensure that your children and grandchildren are able to benefit completely from the inheritance you want them to receive and at the same time, protect the family home and other assets from being lost to the costs of Long Term Care.

Without the appropriate business succession strategies…

• Your spouse / partner and children may not inherit your share of a business.
• The business may have to be sold and the proceeds become liable to Inheritance Tax.
• The value of the business could depreciate owing to the inexperience of any beneficiary.
• Business partners may not be able to buy out the deceased’s share.

Our business estate planning is tailor made to suit you and your business, taking the standard planning options available on the High Street a significant step further.

How can I preserve my business assets for my family?

Hard work and dedication has meant that you have built up a sound business to benefit you and your family and naturally, you would want to ensure that your loved ones are provided for in the event of your death. So what if the worst should happen and either you, or a business partner were to die?

Who would actually be entitled to this share of the business?

Without a valid Will, the deceased’s share would be subject to the Laws of Intestacy and the person who inherits may not be the person you intended. Would you or your business partner be content to run your business with their surviving spouse or their beneficiaries? This could have a major impact on the running of the business, or the value of the business may now go down following the death of such a key person.

Give us a call, drop us an email, follow us on twitter, or just pop by.

Morrison Ward Associates Ltd
MWA House
135c Sheen Lane
London SW14 8AE

T: 0208 878 8349
F: 0208 487 5630
E: info@morrisonward.co.uk
Twitter: @morrisonward