Thomas Hazlewood

Putting in place a Will is a crucial part of your estate planning. If you have never previously obtained legal advice, it can be difficult to know how the process works. This is the second of a three part guide where I explain why Estate Planning is like baking.

---

the Meeting

Whilst I love caramel – it goes incredibly with so many deserts – when I watch it being prepared on the Great British Bake Off, I wonder how anyone ever made it the first time. It seems to require such a fine balance: using the right pan, adding the right ingredients, heating to just the right temperature, and stirring just the right amount. Then, maybe, just maybe, it might end up as intended.

Unfortunately, Estate Planning does offer the same culinary benefits. Like baking though, it does require the same attention to detail, balancing a number of different things. It is for this reason that a large part of the meeting will be spent finding out about you and your situation. This will include:

1. Personal and Family Circumstances:
   • I usually begin with asking about your personal circumstances. This includes details such as your family, your current relationship status and future intentions in that regard.
   • It also includes finding out more about each of your family members. Do you have a good relationship with them all? What are they like? Do any of them have any particular needs? I’m not just being nosy, I promise. Rather, each of these points could feed into the things you should think about including how you leave your things, who should be your executor
2. Your Financial Circumstances:
   • Estate Planning isn’t solely about your assets and your finances, but they are undoubtedly an important part. To advise fully, it is important that I know:
     • What assets you own. If you own them with other people, who you own them with and how are they held.
     • How your assets pass. Not all of your assets pass under the terms of your Will. If they do not, what happens to them when you die? Is this where you want them to pass?
     • What your assets are worth. This helps me to know if your estate will be liable to inheritance tax? If it will likely be, is there a way to minimise that? I am not just thinking about will you have to pay it though. If your estate is liable for inheritance tax, a key issues for your executors will be how it is paid. Knowing that you have sufficient cash assets that can be used to meet any liability is helpful for executors.
3. Your Wishes and priorities:
   • It is only after I have a full understanding of your current situation that I would then move on to discuss your wishes. Whilst your wishes are the most important aspect, it is impossible to advise accurately and fully, without the context. Your specific circumstances will impact on which options are right for you.
4. Options:
   • Once I fully understand your wishes, then I am able to advise you of the options that work for you.
   • Sometimes a really simple Will is just what you need. There is no point in adding complexity if it doesn’t serve a purpose and help you to achieve your priorities.
   • For others, a more complex Will containing trusts is right for them. Potentially lifetime trusts can add a significant benefit in the right circumstances.
   • There are many different types of trusts so each offer different benefits, and each has it’s own limitations. Some provide flexibility, others provide protection, others aid inheritance tax planning. Trusts are incredibly useful tools in Estate Planning. That being said, obtaining the right advice and choosing the right trust is incredibly important!
5. Other Considerations:
   • When considering estate planning, most of my clients typically think of their Wills, trusts and inheritance tax. Lasting Powers of Attorney are also an integral part of that process. Arguably, for you as the person putting them in place they are more important than a Will. LPAs help you whilst you are alive, to be protected and supported. They enable you to appoint someone you trust to make decisions for you, if you can’t make them yourself. No-one else automatically has that right, not even your spouse or civil partner.

After considering the options for you, you will have an Estate Planning cake mix ready for baking. Look out for my next post to see how the bake is completed. I’ll also explain how to add the icing on the cake.