travolta
Member of DD Central
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Post by travolta on Feb 24, 2021 12:45:26 GMT
Having just gone through the process last year of being executor for a parent (the other one having died previously) we are glad we have left 100% of our estate to each other. If the first one passing away doesn't leave everything to their spouse, the forms you have to fill in for the second one (IHT400 + + + + +) are horrendous. If the first one going leaves it all to their spouse, on the death of the second one, you only need to fill in IHT205 only & it can be done on-line. For this reason, our wills are only 2 pages long ie everything to spouse first, then everything equally split between surviving children or grandchildren (if applicable) Ours is like that ,but I'm toying with the idea of leaving half to children on the first death to evade Care Home Fees . Waddya reckon?
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Post by moonraker on Feb 24, 2021 13:12:32 GMT
You don't need a trust if all the executor is going to do is wind up the estate and distribute it to the beneficiaries. If you have (or had back then) minor children, or other beneficiaries who lack capacity, you'd might well want/need to set up a trust for their benefit. In that case the will would set up the terms of the trust, which would run to many pages of boilerplate such as you mention. Sometimes people have other reasons to set up trusts, eg to "keep it in the family" for longer, or perhaps to try to save tax (though my impression is they are largely ineffective for that these days). But I infer from your question that you had no such reason! Certainly back in 2000 I suspected that the trust was unnecessary for my circumstances at the time. These have become more complex in recent years, including VCTs and P2P, and I suspect that it may take a while to sort everything out.
I continue to plough through those 27 pages. After 20 years I do need to update the will and am wondering whether the new one needs to be so complex. Perhaps another firm of solicitors ...
In the meantime I seek a diversion by granting Lasting Powers of Attorney. (All credit to the Office of the Public Guardian - I've yet to fault their website and on-line guidance.)
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
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Post by keitha on Feb 24, 2021 13:23:56 GMT
My tips. list all your investments, etc on a separate piece of paper. Not the amounts or account numbers - just account names and providers. Then verbally tell the executor where it is. If you intend the omit someone from an inheritance, don’t just not name them - specify that they are excluded and maybe say why. yes I'm told just omitting them can lead to issues, an elderly friend of mine whose will I witnessed has specified that their eldest ( and as she puts it "money grabbing" ) daughter is to receive £20 in loose 1P coins. by specifically putting her in, it stops her claiming she was omitted in error.
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
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Post by keitha on Feb 25, 2021 10:54:20 GMT
Trusts can be a problem, My kids are the beneficiaries of a trust setup by grandfather, They have to apply for money and the trustees ( Solicitors ) decide if it is appropriate use of the fund. now I know the fund is into 7 digits of £'s, yet they can be awkward over relatively small requests. The last set of figures I saw they charged over £10,000 for managing the trust in one year.
Now I appreciate that when the trust was setup the kids mother was unemployed ( and had been for 25 years ), and living with a ne'er do well, unfortunately my eldest daughter was following the same path. part of the reason for creating the trust was that had either inherited a large lump sum they would waste it, and of course they would lose benefits until it was spent.
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Post by bernythedolt on Feb 25, 2021 11:01:13 GMT
Having just gone through the process last year of being executor for a parent (the other one having died previously) we are glad we have left 100% of our estate to each other. If the first one passing away doesn't leave everything to their spouse, the forms you have to fill in for the second one (IHT400 + + + + +) are horrendous. If the first one going leaves it all to their spouse, on the death of the second one, you only need to fill in IHT205 only & it can be done on-line. For this reason, our wills are only 2 pages long ie everything to spouse first, then everything equally split between surviving children or grandchildren (if applicable) Ours is like that ,but I'm toying with the idea of leaving half to children on the first death to evade Care Home Fees . Waddya reckon? Our wills set up a Flexible Life Interest Trust. I believe one must be careful not to talk about evading care home fees. If they believe you have done that, they can still come after you! A FLIT offers great flexibility for the survivor to do as they wish, hopefully in line with your letter of wishes. You may want to look at a FLIT to achieve your aim.
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keitha
Member of DD Central
2024, hopefully the year I get out of P2P
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Post by keitha on Feb 25, 2021 19:51:22 GMT
You may want to look at a FLIT to achieve your aim. Giggling like a loon, in Lincolnshire doing a FLIT, is the local term for someone who moves overnight to avoid creditors etc
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Post by bernythedolt on Feb 25, 2021 20:21:03 GMT
Giggling like a loon, in Lincolnshire doing a FLIT, is the local term for someone who moves overnight to avoid creditors etc A moonlight flit. My dad and I actually helped his brother and family do one using dad's van! From London, over to the east coast, for a ship to Oz. Didn't get around to telling those nice people at the bank, council rent office, electric co., etc, etc... must have slipped my uncle's mind! 😁 I was just a lad back then, so a brilliant adventure for me, full of stealth and intrigue. Uncle Bert will be long dead now... in case anyone's chasing it up still!
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