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Three reasons why you should put your Will in place properly

The importance of a Will is often not realised until someone actually discusses their wishes, says Tom Mottram from Porter Dodson.

We have, in previous editions, advocated the importance of carefully considering and putting in place provision for the devolution of your estate. It is often not until someone discusses their wishes and affairs that they recognise the importance of a Will. We frequently deal with families and friends of individuals who have died without keeping theirs up to date. The implications for such parties can be extremely costly at what is already a difficult time. Below are three crucial reasons (and it is a nonexhaustive list) for putting your Will in place properly and making sure you keep it under regular review.

1. Ensuring your estate passes to your chosen beneficiaries

In the absence of a valid Will, the law will choose to whom your estate passes and how as well as who manages everything after your death. Often this will not be as you intend, or it may fail to recognise the specifics of your circumstances. For example, you may have lost touch with certain people or feel that others are in greater financial need. One beneficiary may be more connected to your home, your affairs or your business. Circumstances, wishes and rules change over time. Aspects such as these must be addressed if confusion and upset are to be avoided. Otherwise disputes can arise, which are expensive to resolve.

2. Inheritance Tax

The government has frozen the tax-free allowance for several years, meaning more people may unknowingly find themselves in a taxable position. A professionally prepared Will can help to capture allowances and exemptions that the taxman has made available, allowing more of the estate to pass to your beneficiaries.

3. Protection and flexibility

Sometimes it may not be appropriate for an intended beneficiary to inherit. Perhaps they are young, financially irresponsible or experiencing matrimonial difficulties.

We’re here for you

We cannot issue you with a crystal ball (we keep this just for the lottery numbers), but we can prepare your Will so that your beneficiaries are looked after without risking their inheritance. If you need to make or review a current Will, we can help you so that you make the decisions that are right for you and your family. To find out more, contact Tom Mottram: tom. mottram@porterdodson.co.uk or 01305 756317.

Do I need a prenuptial agreement?

Congratulations! You’re engaged. You’re now looking at setting the date, booking the venue and writing the guest list; but have you considered a pre-nuptial agreement? Or do you think that’s only for the very wealthy?

With the average age for first marriages now well into our 30s and the fact that second marriages are increasing year on year, people are thinking more about the need to protect the assets which they have already accumulated, in the event of a separation.

What is a prenuptial agreement?

A ‘pre-nup’ is an agreement entered into by a couple prior to their marriage or civil partnership. It sets out who owns what and outlines what would happens to their assets and income if their relationship breaks down.

Who should get a prenup?

You should think about setting up a prenup if you: • Have assets that you would not want to share if the relationship broke down • Have children from an earlier relationship and want to protect their inheritance or keep specific assets for them • Have your own business, or perhaps a family farm, which you want to retain control of • Want to safeguard money or assets that you are expecting to receive in a future inheritance • One of you has debts and you would like a clause acknowledging that those debts are nothing to do with the other partner

Relationship breakdown is never easy. Emotions can run high and it can be difficult to think about financial matters. If an agreement cannot be reached and Court proceedings are necessary this can be very expensive and stressful. The UK court has a wide discretion when dividing assets and this can result in uncertainty for all. By entering into a properly drafted prenuptial agreement you can alleviate some of that uncertainty and stress as you will already have agreed how to divide your assets in the unfortunate event of the relationship breaking down.

Are prenups binding in the UK?

Currently, in England and Wales prenups are not 100% legally binding. The Court will always retain jurisdiction. But, if a prenuptial agreement is properly entered into then it will carry significant weight in any subsequent court proceedings.

What do we need to do to enter into a prenup?

It is important that both people receive proper advice and the following formalities are adhered to: 1. Both people must enter into the agreement of their own free will and without any

duress, influence or pressure. 2. Both people must provide full and frank financial disclosure to each other. 3. Both people must obtain independent legal advice from separate solicitors before entering into the agreement. 4. The agreement should be fair and reasonable to each party. (It is prudent to specify review dates for key events in the future, such as the birth of a child or say in 5, 10 or 20 years’ time to ensure the agreement remains fair and reasonable) 5. The agreement should be finalised no later than one month prior to the date of the marriage. 6. Each person should intend that the agreement determines the outcome of their financial arrangements in the event of divorce.

All of these formalities are crucial - if they are not complied with then a Court may decide to ignore the prenuptial agreement. Prenups are not for everybody but they are certainly not just for the rich and famous anymore.

If you are looking for further advice about prenuptial agreements please contact Kimberley Davies on 01202 338569 or at Kimberley.davies@trethowans.com