Planning your estate – what are the basics? It is an interesting question that everyone that reads this that is aged 18 years and older should be asking themselves. Once again, Laura Richardson has the answers. Read on to find out more . . .

Planning your estate is the process of making arrangements for what will happen to your money and possessions after your death. The main aim of planning your estate is to protect your assets from Inheritance Tax ensuring that your beneficiaries receive the most possible inheritance from your Estate. Many companies offer services for planning your estate. However, it is relatively simple to start estate planning by yourself. We at Andrew Douglas Wills and Legal Services understand that planning your estate can appear daunting, and therefore we have compiled this list detailing the basics:

  • Compile a comprehensive list of your assets. This should include physical possessions, property, financial assets, and digital assets such as music, photographs, or digital currency.
  • Record all gifts you have made in the last 7 years. Some gifts are liable for Inheritance Tax even if you make them up to 7 years before you die! However, currently, each individual can gift up to £3000 annually liability-free, plus there are additional gifts that can be made under certain circumstances. There are guidelines available at https://www.gov.uk/inheritance-tax/gifts.
  • Discuss minimising the impact that Inheritance Tax will have on your Estate with a professional. With Inheritance Tax set at a whopping 40%, it is crucial to protect your assets by ensuring that you only pay Inheritance Tax on the smallest possible portion of your Estate. Your chosen professional should be able to advise you upon the options available, including setting up Trusts, gifting assets, and including a donation to charity within your Will.
  • Make a valid Will. Once you have decided upon the best way to protect your assets from Inheritance Tax liability, you will need to formally record your wishes within a Will. It is vital that your Will is validly made to ensure that there are no misunderstandings or course for your Will to be challenged after you die. It is therefore highly advisable to use a specialist firm to write your Will.
  • Discuss your funeral preferences. Another aspect of planning your estate that you may wish to consider is to discuss your funeral preferences. You may wish to detail your preferences in your Will, although it should be noted that recording your wishes for your funeral plans in this way is not legally binding. You may therefore wish to consider a Prepaid Funeral Plan which guarantees that your exact wishes are carried out when you die.

If you would like further information or advice regarding any aspect of planning your estate, Andrew Douglas Wills and Legal Services would be happy to hear from you. As specialists in this field, we offer a comprehensive service for planning your estate to give you the peace of mind that your assets will be best protected when you die. What’s more, we offer a free initial consultation. Whether in Braintree or across Essex, we look forward to hearing from you.

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