Heart Streatham Web March 2020

Wills & Probate FAQs
Anthony Gold solicitor Imogen Flynn answers some FAQs surounding
wills and probate.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney (“LPA”) is a document used
to appoint another person or people to make decisions
for you if you are unable to do so yourself. These
people are known as “attorneys”. There are two types
of LPA, one which relates to property and financial
affairs and one which relates to health and welfare.
An LPA relating to property and financial affairs
allows your attorneys to deal with your finances,
for example to pay your bills, sell or buy property
or investments and operate your bank accounts.
An LPA relating to health and welfare allows your
attorneys to make decisions about matters such
as your medical treatment, your diet, where you
live and how you spend your time. There is also
the option to give your attorneys the power to
make decisions about life-sustaining treatment,
but you do not have to give them this power.
What could happen if I don’t make a Lasting
Power of Attorney?
If you don’t make an LPA while you have capacity
and you lose capacity to make decisions for yourself
or manage your finances then someone will need
to make an application to be appointed as your
Deputy. The process is more expensive and takes
longer than making an LPA yourself, as someone is
making the application on your behalf at the Court
of Protection. The Court will take a number of factors
into consideration when deciding if the person
who has made the application is a suitable Deputy.
Why do I need a Will and what happens if I
don’t have one?
By making a Will you can make sure your assets pass
to the people (or charities) you want. You also appoint
executors in a Will, that is, the people you want to
deal with your estate. Broadly speaking, that involves
applying for a Grant of Probate and settling any
inheritance tax, setting liabilities and collecting in
the assets (which could include selling property) and
distributing the estate. If you do not have a Will, then your
estate will be divided according to the intestacy rules.
How do I choose an executor?
It is important to choose executors carefully. It is
advisable to appoint two executors (or more, but no
more than four), or include a substitute appointment,
should something happen to one of them before you
and you don’t have a chance to change your Will. You
should ensure the people you choose have the right
skills to deal with the administration of your estate and
are capable of dealing with paperwork. Dealing with
an estate can be time consuming, and the process can
take a long time, especially if there is property to sell or
inheritance tax to pay. If executors make a mistake then
they can incur personal liability, so you may wish to
consider appointing a professional, such as solicitors.
You can appoint Anthony Gold as your executors.
Is a Grant of Probate always required?
If the person who has died has assets in their sole name
then a Grant will be required to collect these assets in
order to distribute them under the terms of the Will
or intestacy rules. A Grant may not be required if the
estate only consists of jointly owned assets which pass
automatically by survivorship or if there is only small
amounts of cash in the deceased’s bank accounts. It
is important to note there may still be inheritance
tax to pay, even if the assets pass by survivorship.
What are the current rules on inheritance
tax?
There isn’t any inheritance tax to pay on the first
£325,000, the nil rate band. Anything over this is taxed
at 40%. If you own a qualifying residence at the date
of your death and this passes to direct descendants,
such as children or grandchildren, then your estate
will also benefit from the residence nil rate band. This
is currently £150,000, but is increasing to £175,000
in April. Assets left to a spouse or civil partner are
exempt from inheritance tax, and the nil rate band
of the first spouse to die is carried forward to the
second death, provided this is not used up on legacies
or residue left to other beneficiaries. The residence
nil rate band is also transferable between spouses.
If you have any questions, please get in touch with us!
020 8765 2700 anthonygold.co.uk
496 Streatham High Road, SW16 3QB (between Sainsbury’s and The Bull)