MYTHBUSTERS - WILL & LPA EDITION
There are many myths that we come across in this industry, from the ones we just have no reply for like:
‘If I sign my Will, I’ll die’
And the ones we get regularly, and all have our usual response to, like:
‘I’m too young. I don’t need a Will or LPA’
But we also get more technical myths based on misconceptions so I wanted to highlight a few that we get regularly, some of which you may not have had yourself - yet!
‘I don’t need a H&W LPA as my daughter can make all treatment and care decisions anyway’.
No, unfortunately not, as next of kin do not automatically have legal authority to make such decisions.
‘I don’t need a P&F LPA; my IFA will deal with everything for me’.
No, unfortunately not, as a financial adviser does not have this delegated authority if their client loses capacity.
‘You always need a Grant of Probate’
Not necessarily. It is dependent on what the deceased had and where (some banks will release more than others without a grant). Was everything held jointly?
Clients with businesses
One of the things we see the most ‘myths’ and get the most questions and training requests about are in relation to clients with businesses.
‘A Business must be specifically gifted in a Will’
Gifting of a business is not always necessary as it will fall into the residue. The business only needs to be gifted if the beneficiary is different to the residuary beneficiaries.
‘Everyone with a business needs a Business Property Trust’
Not necessarily, only in certain circumstances dependent on what the clients intend to happen with their business.
‘You need a Business Property Trust to obtain Business Relief’
BR is not reliant on having a trust in place but the business trust is reliant on the business attracting 100% BR.
‘You need a Business LPA if you have a business’
Some may need a separate LPA to their personal ones - but not always.
For any estate planning and probate enquiries in Bexhill, Battle, Hastings, Rye and all East Sussex please get in touch.
This message was added on Thursday 13th June 2024
