Introduction to Wills
What happens if you die without making a will?
In legal terms, you will die ‘intestate’ which means your property and belongings may not go to the people you wanted them to. In this case, there are special rules called the Laws of Intestacy that determine how your estate will be distributed.
These rules are the same for everyone. This means the people you actually wanted to leave an inheritance to might not be considered. Similarly, estranged relatives could inherit from your estate.
The Laws of Intestacy state (amongst other things) that:
- Your partner could be forced to sell the family home in order to divide up the estate.
- If you and your partner are unmarried, they will inherit nothing from your estate.
- If you’re separated from your spouse but not yet divorced, he or she will inherit your estate as they would have done prior to your separation.
The Importance of Wills
None of us likes to think about making a Will, let alone the time when it’s actually needed. Many people put off making a Will and perhaps don’t consider setting up a Lasting Power of Attorney (LPA) until it is too late.
Recent months have shown that now, more than ever, it is wise to keep your assets protected and to ensure that your family are aware of your future wishes.
Whilst a Will details how you would like to pass on your assets and takes notes of special requests, it is prudent to make provision in case there is a time when you can no longer look after your health and financial affairs in the form of an LPA. But by taking a few hours to plan things now, you could make an already difficult time for your loved ones much less stressful.
Lasting Power of Attorney (LPA)
Types of Lasting Power of Attorney (LPA)
Our LPA service is only available in England & Wales, and there are two different types of LPA.
- Property & Financial Affairs LPA
- Health and Welfare LPA
What happens if I do not have an LPA in place?
If you’re married or in a civil partnership, you may think your spouse will automatically be able to deal with your bank accounts and pensions if you lose the ability to do so.
But this isn’t the case.
Even if you both have a joint bank account, if one of you loses mental capacity, then the other does not automatically have the right to access the account.
To do so, there needs to be a valid LPA in place naming them as an attorney.
Property and financial affairs LPA
Your Property & Financial Affairs LPA allows those you choose to manage your finances at any time of your life.
You might not want to handle all (or certain parts) of your finances yourself any longer, or you may prefer a safeguard should you become unable to manage them.
You can also state in your LPA that you’d only like it to come into force if you lose capacity.
Your Property & Financial Affairs LPA can ensure decisions are made about:
- Paying your bills
- Collecting your income and benefits
- Selling your home
- Drawing down further funds from your equity release plan
- Investing money
Whilst it isn’t mandatory for you to have a Lasting Power of Attorney in place when you take out an equity release plan, we do strongly recommend to anyone choosing a ‘drawdown’ lifetime mortgage to arrange their Property & Financial Affairs LPA.
We do this because if you’re single, or the equity release plan is solely in your name, then you may be unable to request further drawdowns yourself if you have an accident or start to lose mental capacity.
If you’ve taken out a joint drawdown plan, the same applies. Both of you need to agree and sign the papers every time you apply to release further funds. It’s not enough for just one of you to be able to sign unless an LPA is in place.
A valid LPA will allow your chosen attorney (your spouse, perhaps) to sign the papers on your behalf, enabling further releases in the future.
Your Health and Welfare LPA
Most of us assume that if we ever lost our mental capacity, our spouse or partner will be legally able to make the decisions for us. But this isn’t the case.
Because if such a situation does happen to you and you don’t have a suitable LPA in place, then any decisions about your healthcare will be made by doctors who will make them based on your best interests. They will consult your family, of course, but the final decision will rest with medical staff.
But by appointing your loved ones as your attorneys now, it will ensure their decisions, made on your behalf, are adhered to.
At Bower, we understand this is a sensitive but important matter.
Health and Welfare LPA guidelines
Your attorney can only use this type of LPA when you no longer have the mental capacity to make decisions for yourself. They will help you by making decisions about things such as:
- Where you live or where you are treated
- Day-to-day care including your diet and medication
- Whether to accept or refuse life-sustaining treatment
- Who can and cannot have contact with you
Who can be an attorney?
It is entirely your choice who will be your attorney(s). However, they must be over 18 and cannot be paid care workers.
People often choose their spouse, partner, children, sibling or a close friend to fulfill this role, but you can ask an accountant, solicitor or other professional. Do bear in mind they are likely to charge for their time.
Final points to note:
- You do not have to appoint the same people on both LPAs
- For a Property & Financial Affairs LPA, your attorney(s) cannot have been declared bankrupt
Our Customer Reviews
IMPORTANT TO KNOW
At Bower Home Finance, we will understand your unique circumstances and advise you to ensure you are receiving the best plan to meet your objectives. There are plans that allow you to make voluntary repayments and move home, subject to lender criteria. However, early repayment charges may apply in certain circumstances.
Bower Home Finance provides independent, impartial whole of market equity release advice with an award-winning customer service experience. Initial advice is provided at no cost to you and without obligation. Only if you choose to proceed and your plan completes, would a typical advice and administration fee of £1,695 be payable.
Equity release requires paying off any existing mortgage. Any money released, plus accrued interest to be repaid upon death, or moving into long-term care. Equity release will reduce the value of your estate and your entitlement to means-tested benefits now or in the future, and impact long-term care funding. If you are considering equity release, we strongly recommend that you read our Equity Release page carefully and talk to one of our specialists before deciding if you wish to proceed.
To find out more about any of the products and the service we provide, please call us on freephone 0800 411 8668, request a call back, email us, or use our live chat on our website.
Please be aware that equity release may involve a home reversion plan or lifetime mortgage which is secured against your property. All features and risks are thoroughly explained in your free personalised illustration.