By Samantha Wilson
Howes Percival LLP
CONTEMPLATING your mortality or the possibility of losing mental capacity is not pleasant. However, forward planning for these scenarios can give you and your family peace of mind.
The first step is making a will. So, why should anyone make a will?
– Without a will, your estate will be distributed in accordance with the inflexible intestacy rules which dictate who inherits your assets.
– Financial affairs and family relationships can be complex and you can make provision for your loved ones tailored to your personal circumstances.
– You decide and control how your wealth is distributed.
– You choose who will be the guardians of minor children.
– You decide who has the right skills to be appointed as your executors.
– You ensure that your arrangements are as tax efficient as possible.
Business owners need to think carefully about how to deal with their business interests in their wills and to consider whether:-
– The provisions of the Will correspond with the succession planning in place for the business.
– Your shareholding is dealt with in a way that is compatible with the provisions of any shareholders agreement and cross purchase and sale options.
– The Articles of Association of your company permit your shares to be transferred in accordance with your will.
– Any Inheritance Tax relief that may be available by the use of Business Property Relief is secured and maximised.
If you don’t get it right, the consequences can be problematic and expensive.
While no one likes to think that they may not be able to manage their own affairs in the future, preparing Lasting Powers of Attorney (LPAs) means that you choose who will act as your attorneys and manage your affairs should this occur. There are two types of LPAs:-
– LPA for Property and Financial Affairs.
– LPA for Health and Welfare.
It is also possible to have a separate LPA for Property and Financial Affairs that is restricted to dealing with your business interests separately to your personal finances.
Being prepared can save a lot of stress and heartache.
Contact Howes Percival on 01604 230400 or visit www.howespercival.com
