Wills Options
Below are the different types of Wills and optional extra's that you can have when creating your Wills including descriptions to explain each option.
Single Will
A Single Will is ideal if you’re making arrangements just for yourself. It sets out exactly how you’d like your money, property, and belongings to be dealt with after you pass away, giving you peace of mind that everything will go where you intend.
Mirror Will
Mirror Wills are commonly used by couples. They are two separate Wills that reflect each other, usually leaving everything to one another first, and then to chosen loved ones (such as children) afterwards. They’re a simple and popular way to ensure both partners’ wishes match.
Living Will
A Living Will (also known as an Advance Decision) lets you set out your wishes for medical treatment in advance, in case you’re ever unable to communicate them yourself. This can include decisions about life-sustaining treatment, giving both you and your loved ones clarity and peace of mind during difficult times. It helps ensure your wishes are known and respected, while also easing the burden on family members who may otherwise have to make those decisions.
Important Note: An oral advance decision may not be followed due to lack of evidence regarding its existence or validity.
This is why having your decisions in writing is safer.
It is advisable that advance decisions are regularly reviewed and updated if necessary, as an advance decision made some time ago may raise doubts as to whether the decision is still applicable. A regularly viewed document will give a healthcare professional confidence that the maker’s views have not changed.
Optional Extra's
These are additional extra's that you can add to your Will to make your estate planning more robust and give a clear guide on how you want your estate to be distrubuted which protects your assets for your beneficiaries.
Family Trust
A Basic or Family Trust allows you to control when your children receive their inheritance. Instead of automatically inheriting at age 18, you can choose a later age that you feel is more appropriate. This can help ensure their inheritance is used wisely and at the right time in their lives.
Property Trust
A Property Trust is often used by homeowners, particularly couples, to protect their share of the family home. It can help ensure that your portion of the property is passed on to your chosen beneficiaries, while still allowing a partner to remain living in the home.
Discretionary Trust
A Discretionary Trust gives your chosen trustees flexibility to decide how and when your beneficiaries receive their inheritance. This can be helpful if circumstances might change in the future, or where beneficiaries may need different levels of support.
Flexible Life Interest Trust
This type of trust allows you to provide for a loved one (for example, a partner) during their lifetime, while also protecting some or all of your estate for other beneficiaries later on. It offers a balance between immediate support and long-term planning.
Business Property Relief Trust
A Business Property Relief (BPR) Trust can be a useful way to help reduce inheritance tax (IHT) on certain business assets. By placing qualifying assets into a trust, it may be possible to pass on more of your wealth efficiently.
That said, I am not a tax specialist, so I always recommend speaking with a qualified advisor to fully understand your personal inheritance tax position and any liabilities.
Lasting Power of Attorney
A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint someone you trust to make decisions on your behalf if you’re unable to do so yourself. It ensures your wishes are respected and that important decisions about your finances, property, health, or care can still be managed by the right person at the right time.
Property and Financial Power of Attorney
This allows you to appoint someone you trust to manage your finances and property if you’re unable to do so yourself. This includes things like paying bills, managing bank accounts, or handling property matters.
Having this prepared by a professional helps reduce the risk of errors or delays when registering with the Office of the Public Guardian, who currently charge £92 per LPA.
Health and Welfare Power of Attorney
A Health & Welfare LPA allows someone you trust to make decisions about your care, medical treatment, and daily routines if you’re unable to make those decisions yourself.
Using a professional to prepare this document can help avoid common issues or rejections from the Office of the Public Guardian, who charge £92 per LPA for registration.
Business Power of Attorney
A Business Lasting Power of Attorney allows you to appoint someone you trust to step in and manage your business affairs if you’re unable to do so. This could include making financial decisions, managing accounts, or keeping day-to-day operations running smoothly.
Having this in place helps protect your business from disruption at a difficult time. Using a professional to prepare the document can also help avoid errors or delays when registering with the Office of the Public Guardian, who charge £92 per LPA.
Important Points
Minimum age that a person can make or act on an LPA is 18
A donor must have the mental capacity to make an LPA. if there are any concerns a doctor should be involved to provide written evidence and where possible the doctor should also act as the certificate provider.
A certificate provider is required to act on both types of LPA.
Important that the donor appoints people they trust as they are giving powers to individuals.