So you've spent years working hard, spending time away from your partner and children to bring in money to pay bills, to pay a mortgage, to save for a rainy day.
Do you want all that hard work to be undermined due to bad decisions and being unprepared for your future?
The cost of a funeral increases every single year. There was an 88% increase in costs from 2004 where the average cost was £1,920 to £3,609 in 2014. That increase is far greater than the interest from any savings you may be putting aside to cover the cost.
If that rate of increase continues, and there is no reason why it won’t, the cost of a funeral in 2024 could easily be more than £6800. Could your family afford those fees?
The current rate of inheritance tax sits at 40% of an estate worth more than the nil rate band.
So any estate that is worth more than £325,000 will be subject to inheritance tax. If you leave an estate worth £500,000 to your children, they may have to pay inheritance tax to the amount of £70,000. This is £70,000 that your family won’t be receiving and instead goes to the government.
An LPA, or Lasting Power of Attorney gives someone of your choosing control over your finances, property, health and welfare in the case that you lose the ability to make sensible, well informed decisions for yourself. This could be because of dementia or even an accident.
What happens if you don’t have an LPA in place? Your partner could lose the ability to access joint bank accounts, to sell your house if funds are needed or to even make medical decisions on your behalf. How are they going to pay your bills? Could they lose your family home due to being unable to pay the mortgage? Are you paying your children’s school fee’s from a joint account?
The only way that they can get access would be to apply to the Court of Protection. This is a costly process, not just in money but in time. Initial fee’s payable to the Court of Protection in excess of £2,000. You then have annual fees for things like security bonds which can come in over £5,000 a year. If you would like to read more information on how not having an LPA can harm you, do an internet search for Heather Bateman.
Dying intestate means to die without having a valid Will. You may think that this isn’t something that can be that costly, but in some cases it can be just that. Normally your estate will pass on to a husband, wife or civil partner, but what if you are separated from them and would prefer your estate to go to your new partner? What if your family have a disagreement about who should receive parts of your estate?
The outcome is a costly legal case that can drag on and slowly reduce the amount passed on as the estate is slowly reduced with legal fees.
If any of the points above concern you and raise doubts about the future of your estate, then call The Will Associates today to arrange a no-obligation appointment with one of our experienced consultants. 0800 9500 700.