Will writing and estate planning aren’t simply about what will happen when someone passes away. All lifestyle choices and financial decisions for later life are also an inherent part of the entire process. Essentially if a person fails to document what will happen with their estate should they be no longer around, the decision making process will potentially carried out against the person’s wishes. Furthermore, if an appropriate form of income for retirement isn’t effectively established, the overall inheritance could also be considerably less than what they’d hoped for, should lifestyle choices not be planned for and adapted upon retirement.
To lessen the impact of your clients’ deaths, a wider analysis of financial investments should be carried out, with clever planning to avoid unnecessary legal action and minimise negative effects on beneficiaries. Though making such plans is unlikely to be a pleasant experience, it is up to you as the professional to stress that if documentation isn’t drafted effectively, the Rules of Intestacy do not consider emotional or financial needs of loved ones when an estate is to be distributed without a will in place.
Clients should also be made aware there are a number of ways in which their home, for example, can be bequeathed. By detailing all the options available, both you and the client can figure out what is best for their circumstances and consider all the outcomes that are likely to emerge — including possible changes that may occur.
Using property as an example, this can be handled in ways beyond simply “leaving” it to a family member. Strategies include:
- Documenting the house or property within the client’s trust and having the trustees handle the probate.
- Having in place a joint deed so the property is automatically inherited by the surviving joint owner.
- Creating a life estate for your client, which can be documented within their will.
In addition, ensuring your client is making the right investment choices and pension funding plans are just as important as planning what will happen upon death. Funerals, debt management and possible legal costs can cause great strain on friends and family members. Income from investments and having debts reduced as much as possible could be life changing for those dealing with the grief.
Please comment below and let us know of any clever or even unusual planning strategies you’ve used with your clients.
