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Why vary your inheritance to a Trust? By not receiving your inheritance “absolutely” and varying the assets into a Trust, this will ensure that the assets are protected for generaons to come and protected against risks such as : ¨ ¨ ¨ ¨ ¨ Divorce selements Long Term Care Fees Marriage Aer Death Creditors & Bankruptcy Further Taxaon Assets held within a Trust will ensure your inheritance is protected whilst sll allowing you full access to the assets to use as you wish. How else can a Deed of Variaon Help? A Deed of variaon can also ensure that the estate passes on in the most Inheritance Tax efficient way. For example, if the assets are passed to an individual who may have an Inheritance Tax Problem themselves, they could elect to have the assets passed to their children or grandchildren instead, thereby reducing their estate. If this is the case, the individual who has forgone the legacy is not deemed to have made the gi but instead it is the deceased who is deemed to have made the transfer. Hoe does a Deed of Variaon work? Each adult beneficiary under a Will (or an intestate estate) only has the authority to vary his own share of the estate, but it can apply to any property comprised in a deceased’s estate as long as the person whishing to vary has an interest in that property. When children under the age of majority are due to inherit, the maer is more complicated as they themselves cannot consent to changes. An applicaon must be made to the courts for consent to be obtained on their behalf. The rights of children cannot be varied except by Court Order. Do all Beneficiaries of the Will need to agree to the Variaon? No, as long as the beneficiary varies only their own share. Can a Deed of Variaon be relied on? Most people would like to deal with the issue of Inheritance Tax Planning and not return to the issue, Confident that they have found the most efficient way to deal with their estate. Unfortunately, although extremely useful, a Deed of Variaon should not be relied upon as part of an individual’s estate planning. It may be that the effecveness is reduced by the Government in the future. However at present they do offer the beneficiaries of a Will or intestacy an effecve way of changing a will aer death. Finally, it can be used as a method of absorbing a capital gain made on an asset between date of death and date of sale. By transferring ownership of the assets from one beneficiary to several, more capital exempons can be used and any gain made on sale is absorbed by exempons, meaning that there is no Capital Gains Tax to pay. Visitor website for more informaon: www.essenalwt.co.uk To find out how we can help contact us on 0845 051 0429
What is the role of an Executor? Being the Executor of an estate is not really an honour. ¨ ¨ ¨ ¨ Being an executor is a difficult and me consuming job. The role carried some legal liability. Relaves may be too distressed to perform the role. Decisions could make them unpopular with beneficiaries. Appoinng an executor You should choose an executor to carry out your wishes, as stated in the Wills. Executors can be beneficiaries under the will and oen people appoint their spouse, Civil partner or children as executors. Check with your proposed executors that they are willing to take on this role before naming them in your will, as it can involve considerable responsibility. Consider naming more than one executor in case one dies before you. It may also be easier for the executors if there is more than one person to share the work and the responsibility. The executors may have to deal with any day to day administraon of your estate in the period before it can be distributed. Executors can claim from the estate for expenses incurred in carrying out their dues. If the estate is large or complicated, there may be advantages in appoinng a professional executor. A professional executor such as a solicitor, accounts or bank managers will charge between 3 and 5% of the value of the estate for the work that they do and oen an hourly rate in addion to this. Choice of executors ¨ Individuals ¨ Professional People (solicitors, accountant) ¨ Trust corporaon They all have advantages and disadvantages which need to be considered in the light of the circumstances. You should take into account the following. ¨ Availability ¨ Suitability ¨ Willingness to act ¨ Any possibility of conflict or dispute ¨ The possibility of predeceasing (a substanal provision should then be made) ¨ ¨ The size, nature and locaon of the estate, and the extent and complexity of burden placed on executors The costs involved Where professional's are chosen as executors, they may be appointed as individually named persons or as a firm. Executors like trustees, are in a fiduciary relaonship so they cannot make a profit out of their office. They may only claim out of pocket expenses. Therefore, a charging clause must be included, authorizing them to charge for all work done by the executors or their firm in administering the estate. There is no legal objecon to a beneficiary being appointed as an executor where he or she is the sole beneficiary, or where the estate is small or uncomplicated.
Page 1 and 2: Why do I need a will? Without a Wil
Page 3 and 4: How can I protect my Children’s i
Page 5 and 6: What if I am unable to manage my af
Page 7: Deed of Variaon Your inherited weal
Page 11 and 12: Paying for Care As you get older yo
Page 13 and 14: How do I protect my home and assets
Page 15 and 16: What is the role of a Guardian? Gua

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