The Importance of Making a Will at Christmas: A Gift of Peace and Goodwill As the twinkling lights of Christmas brighten our homes and the aroma of festive treats fills the air, it’s easy to get caught up in the hustle and bustle of the season. Between picking out the perfect Christmas presents, preparing meals, and enjoying time with loved ones, it’s a time filled with joy, laughter, and celebration. But amidst the holiday cheer, there’s one thoughtful “gift” we often forget to give ourselves and our loved ones, the peace of mind that comes from making or updating your will. Christmas is all about giving, and what better gift could you offer than the gift of security, clarity, and love? By planning your estate and securing your legacy, you’re giving your family the gift of certainty, something truly priceless that will last long after the Christmas decorations come down. 1. A Legacy of Love and Care Christmas is the season of giving, and what better way to show your love than by securing your legacy? Whether it’s a luxurious Rolex watch, a dazzling diamond ring, or a treasured family heirloom, these gifts are often more than just material items, they carry significant sentimental value and emotional weight. Imagine giving or receiving a Rolex watch this Christmas that will be cherished for years to come. Or perhaps it’s a diamond ring, passed down as a symbol of family love and tradition. These gifts may not just represent a financial value, but a lasting memory and legacy. Now, imagine this: If something were to happen to you, would your loved ones know what to do with these meaningful gifts? A well-crafted will ensures that these items, as well as everything you’ve worked for, are passed on exactly as you intend safeguarding both their monetary and emotional value. Without a will, items like your treasured watch or diamond ring could lead to confusion or even disputes among family members, something no one wants to face at a time of loss. By making your will part of your Christmas plans, you’re offering a gift that ensures these precious items continue to tell your story for generations to come. 2. Providing Peace of Mind This Christmas Christmas is a time to relax and enjoy the company of family and friends. However, knowing your affairs are in order can give you the ultimate peace of mind, allowing you to focus on what really matters: creating memories, sharing laughter, and celebrating the season. Whether you’re planning to give a gift to someone special this year, or simply want to ensure your estate is distributed according to your wishes, a will gives you the gift of peace. You’ll know that your loved ones won’t have to worry about the “what ifs” in the future because you’ve already laid out your wishes in a legally binding document. Instead of worrying about what might happen if you don’t plan ahead, you can enjoy your Christmas with the certainty that your legacy is secure. 3. Spreading the Spirit of Goodwill Christmas is all about goodwill, showing kindness and generosity to others. By making a will, you’re spreading that goodwill not only to your family but also to your favourite causes, charities, or even friends. Including valuable items in your will ensures that the person receiving them will cherish them, just as you intended. Whether it’s a family heirloom, a luxury item like a designer watch, or a cherished piece of jewellery, your will protects your legacy and ensures that your loved ones enjoy your gifts long after the festive season ends. And don’t forget, Christmas is a wonderful time to consider including a charitable donation in your will. The season of giving extends beyond family and friends, it’s also a time to spread goodwill to the causes that matter most to you. What better way to make a difference in the world than by leaving a lasting legacy that continues to give after you’re gone? 4. Christmas is the Perfect Time to Review Your Will Christmas is a great time to review and update your will. Have you recently acquired new valuables? Or perhaps you’ve experienced a significant life change, like the addition of a new family member? These milestones are the perfect opportunity to ensure your will reflects your current wishes. Updating your will is a thoughtful way to ensure that, just like your Christmas gifts, your legacy is tailored to your current life and circumstances. So, take a moment this festive season to make sure everything is in order. 5. The Role of Professional Advice While the idea of writing a will may seem overwhelming, seeking professional advice can make the process straightforward and stress free. A solicitor can help ensure that your will is legally sound, that your estate is distributed according to your wishes, and that your other valuables are handled with care. During this festive season, when you’re surrounded by family and love, it’s the perfect time to give yourself the gift of certainty. Professional legal advice ensures that your will is properly drafted, so you can enjoy Christmas with peace of mind knowing that your wishes are secure. A Will is the Gift that Keeps on Giving As we celebrate the Christmas season, we’re reminded of the things that truly matter; love, family, and the future. Making or updating your will is one of the most thoughtful gifts you can give to your loved ones, making sure your wishes are honoured and that your family is spared the emotional and financial stress of navigating a complex estate. Your legacy is more than just the material things you leave behind it’s the thoughtfulness and care you put into making sure your loved ones are taken care of. This Christmas, give the gift of security, peace of mind, and goodwill ensuring your legacy is cherished long after the festive season is over. Like help creating or updating your will, our team at Browell Smith & Co is here to assist. Contact us today to ensure that your gifts, both big and small, are passed on exactly as you intend.
Trust No-One – Why using Trusts may not be effective estate planning Planning for the future can be complex, and many people are told that putting their property into a trust is a simple way to avoid tax, care fees, or probate. However, trusts are not always the quick fix they appear to be. In this article, we explore the key risks and hidden costs of using trusts for estate planning, including how they can affect inheritance tax, probate, and ongoing administration. Before making any decisions, it’s important to understand the full picture and seek professional advice to ensure your estate is protected in the right way. Transferring Property into a Trust – Key Risks The first thing to be aware of when it comes to settling your property into a trust is that you surrender legal ownership of it. This may cause particular difficulty where you settle your home into a trust. By placing legal ownership with trustees, you may find it difficult to obtain affordable home insurance or face complexities and greater costs when selling the property. Other difficulties may occur where the trustees of the trust become uncooperative, hostile or absent. The latter has been most starkly demonstrated in the insolvency of Phillips Trust Corporation and the ensuing fallout, which has been widely reported in the press. It is not uncommon for clients to seek to settle their property into trusts to avoid the costs of care. In short, for care fees planning purposes, a trust will not legitimately work to reduce the costs of care. This is because the Care Act 2014 establishes the framework for ‘deliberate deprivation’. In short, any action taken by a person to deliberately deprive a local authority of assets, which would otherwise be able to be assessed for the costs of care, will be taken into account irrespective of the legal ownership of those assets. Using Trusts to Avoid Probate Some clients make use of trusts to avoid the need to obtain a Grant of Probate on their death. Professional advice should always be sought to ensure that this does not have unintended consequences. It is often the case that a settlor (the person setting up the trust) settles their home into a trust without receiving anything in return (i.e. a gift) but continues to live in the property without paying a market rent to the trustees of the trust. This is known as a “gift with reservation of benefit”. Where a Grant of Probate is required for a different asset within the Estate (e.g. a bank account or Premium Bonds), the streamlined process (where reporting to HMRC is not required) cannot be used because of the gift with reservation of benefit. This means that lengthy forms must be completed and submitted to HMRC that would otherwise have never been necessary, considerably delaying the obtaining of a Grant of Probate. This adds a significant layer of complexity to an otherwise straightforward process and may incur greater costs for your estate. Trusts and Inheritance Tax Implications Where individuals choose to settle their home into a trust, they will lose the availability of the “residence nil-rate band” – an Inheritance Tax allowance worth up to £350,000. This may create a large Inheritance Tax bill for your Estate which would have been avoidable. There is a way to reclaim the residence nil-rate band but this must be actioned within two years of death and not without significant time, effort and cost due to the complexity involved. Administration and HMRC Compliance The unfortunate reality of trusts is that, whilst they may look attractive on paper, they often require a greater level of administration than first anticipated. For example, a trust which contains an income-generating asset should have an annual tax return submitted to HMRC. This may necessitate the involvement of an accountant – an additional expense for a trust. Furthermore, most trusts must be registered with HMRC’s Trust Registration Service and there can be severe financial penalties for failing to do so. When a Trust May Be Suitable In summary, trusts can be an extremely useful tool when applied to the right circumstances. The reality is that there are few circumstances where placing your home into a trust is the right tool for estate planning. If you are considering a trust, professional advice should always be sought – at Browell Smith & Co. Solicitors, we are happy to discuss all aspects of appropriate estate planning, including mitigating Inheritance Tax and limiting liability for the costs of care. Our experts offer holistic advice and provide a tailored solution for all shapes and sizes of estate, for people from all walks of life. Contact us today to arrange your free initial consultation by phone 0191 691 3417 or email probate@browells.co.uk.
Trust Me, I’m a Robot – AI Wills Can You Really Trust AI to Write Your Will? Artificial intelligence (AI) is a powerful tool which is fast becoming an indispensable facet of modern life. However, as is often the case with other forms of “homemade Wills”, it may not be wise to rely on a Will drafted by AI technology. The Hidden Risks of AI-Generated Wills Cost vs. Quality: Is It Worth the Savings? Whilst convenient and significantly cheaper than a professionally drafted Will, using AI to draft your Will is a good example of the adage that “you get what you pay for” Lack of Personalised Legal Guidance There are several benefits to a professionally drafted Will, principal among which is the opportunity to meet with an experienced professional who has the ability to draw on their interdisciplinary knowledge of the law in order to provide holistic advice on how your estate ought to be structured. Estate Planning Isn’t Just Form-Filling Oftentimes, people consider that drafting a Will is simple and that can often be true in respect of the actual drafting of the document. The complexity of drafting a Will is understanding the multitude of legal quirks which comprise proper estate planning. Why Poorly Drafted Wills Could Lead to Family Disputes Ambiguity is often the greatest cause for litigation in respect of legal documents, including Wills. The use of AI, rather than a suitably qualified professional, risks lengthy disputes after your death, causing significant delay and unnecessary stress for your family and those involved in the administration of your estate. The final consideration is compliance with the Wills Act 1837. In order to be validly executed, Wills are subject to strict witnessing requirements. A failure to properly observe these requirements may result in the Will being declared invalid and your estate being administered as if you left no Will. How Our Team Can Help A Comprehensive, Professional Will Service At Browell Smith & Co. Solicitors, our comprehensive Will-drafting service includes:- A free initial consultation to determine the composition of your estate; The benefit of our professional experience and judgement, including the ability to advise on complex Inheritance Tax matters and care home fee planning; Peace of mind that your Will has been correctly signed and dated using two professional witnesses; and Secure storage of your executed Will. Contact us today to arrange your free initial consultation by phone 0191 691 3417 or email probate@browells.co.uk.