Protect Your Assets
Protecting your assets is one of the most important decisions you can make. Here at Your Choice Cover it is our mission to make sure your family's future and its assets are protected and made as simple as possible.
Will
A Will is a distribution document that states what is going to happen to the assets if the worst-case scenario were to happen to you. However; it offers no protection of those assets, that's where Trusts come into affect.
Trusts
A Trust protects the assets owned by the client but gives no instructions as to how those assets are to be distributed. This is why it is crucial to register a Will.
Lasting Power Of Attorney
A Lasting Power Of Attorney covers decisions about your financial affairs, or your health and care. It comes into effect if you lose mental capacity, or if you no longer want to make decisions for yourself. This also stops UK courts from interfering and making decisions for you instead of a loved one.
Who Needs A Will?
Anyone over the age of 18 with assets can set up a Will whether you are single, married or in a long-term relationship. If you are under the age of 18 with children you are entitled to setup a will as this is the only way you as a parent, can appoint legal guardians to look after your child under the age of 18.
Consequences Of Not Having A Will
Married Couples - In England & Wales just because you are married does not mean they will automatically inherit all the other assets unless there is a Will setup stating this.
Unmarried Couples - Unmarried but have been with your partner for a long time? in the eyes of the law you are only counted as "Friends" and your partner comes below: Parents, Siblings, Aunts and Uncles and even Cousins.
Parents With Children Under 18 - Courts decide who will look after your children in the event that both parents pass away before they reach the age of 18 and that may not be with the person of your choosing. Children can even be placed into foster care until a decision is made.
What Is A Trust?
A Trust is a piece of protection set in place to make sure the loved ones you want to inherit your assets actually inherit it, rather than losing this to the state or the courts making the decision on how the money will be distributed. This also stops the funds accumulated by these assets from being lost to particular circumstances.
For example, if you have 2 children under the age of 18 and you have left them your assets and estates, they are not entitled to this money until they reach the age of 18 so this will go into the name of their legal guardians. If for example, this legal guardian goes through bankruptcy these assets will be used to pay for the debts. Having a Trust in place ensures this can never be touched.
What Is A Lasting Power Of Attorney?
The law states that you can delegate decisions about financial and health matters to a 3rd party whilst you have the mental capacity to do so. Once you have lost the mental ability, those decisions are taken away from the individual and left to social services for health care requirements and the courts of protection for financial matters.
A&E doctors are required by law to report loss of mental capacity due to accident etc, within 48 hours to the Court of Protection (CoP). All assets including joint bank accounts are frozen until a deputy is appointed through the CoP. This can cost between £5,000 - £8,000 to setup then an annual cost of £1,800 - £2,000 pa until full recovery or death, this can also take up to 18 months to set up. Having a Power of Attorney can prevent this from happening.
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