What Does an Estate Planning Solicitor Do?

Advises on Wills and Trusts

One of the most important roles of an estate planning solicitor is to advise you on the creation of a will. A will is a legal document that outlines how your assets will be distributed after your death, and it ensures your wishes are followed. Without a will, the UK’s intestacy rules will dictate how your estate is divided, which may not align with your preferences.

A solicitor will:

Help you draft a legally binding will.
Advise on any specific clauses, like appointing guardians for minor children or allocating specific items to certain people.
Ensure the will is updated over time to reflect changes in your circumstances (e.g., marriage, divorce, new children).

In addition to wills, solicitors also help set up trusts, which are legal arrangements that allow you to manage and protect your assets during your lifetime and after your death. Trusts can:

Provide long-term financial support for beneficiaries, such as children or vulnerable adults.
Minimise inheritance tax (IHT) by moving assets out of your estate.
Protect assets from creditors or family disputes.

Inheritance Tax Planning

In the UK, inheritance tax can significantly impact the value of your estate when it is passed on to your beneficiaries. An estate planning solicitor offers expert advice on how to reduce the amount of tax payable.

Here’s how they help:

Maximise allowances and exemptions: A solicitor ensures you make use of inheritance tax reliefs, such as the Nil Rate Band (currently £325,000) and the Residence Nil Rate Band (an additional £175,000 when leaving your home to direct descendants).
Gifting strategies: They advise on lifetime gifting, where you give away assets before you die to reduce the taxable value of your estate.
Setting up trusts: Trusts can be used to transfer assets outside of your estate, potentially lowering the inheritance tax burden.
Charitable donations: Leaving money to charity in your will can reduce your tax rate from 40% to 36% on the remainder of your estate.

By working with a solicitor, you can ensure your estate is structured to minimise tax and maximise the amount passed on to your loved ones.

Setting Up Lasting Power of Attorney (LPA)

An estate planning solicitor can also help you prepare for situations where you may lose mental capacity, whether due to illness, accident, or old age. In such cases, a Lasting Power of Attorney (LPA) is a crucial document. It allows someone you trust (your attorney) to make decisions on your behalf.

There are two types of LPAs:

Property and Financial Affairs LPA: Allows your attorney to manage your finances, including paying bills, selling property, and handling investments.
Health and Welfare LPA: Gives your attorney the authority to make decisions about your medical care and personal welfare, such as where you live and what treatments you receive.

An estate planning solicitor ensures:

The LPA is correctly drafted and registered with the Office of the Public Guardian.
You appoint the right person as your attorney.
Your wishes are clearly outlined to avoid confusion later.

Managing Probate and Estate Administration

After a person dies, their estate must be administered, which often involves the legal process of probate. Probate ensures that the deceased’s estate is distributed according to their will or, if there’s no will, in line with UK law. This can be a complex and time-consuming task, but an estate planning solicitor can handle it efficiently.

Here’s what they do during probate:

Apply for the Grant of Probate (or Letters of Administration if there is no will).
Value the estate: This involves identifying and valuing assets such as property, savings, and investments.
Settle debts and taxes: The solicitor will ensure all outstanding debts and inheritance taxes are paid before the estate is distributed.
Distribute the estate: They will ensure that assets are distributed to beneficiaries according to the will or intestacy rules.

Their involvement ensures that probate is handled smoothly and legally, reducing stress for grieving families.

Handling Family and Beneficiary Disputes

Unfortunately, disagreements can sometimes arise between family members or beneficiaries regarding the distribution of an estate. An estate planning solicitor can help mediate disputes and provide clear legal advice to resolve conflicts.

Here’s how they help:

Mediation: Solicitors can help parties reach a compromise without going to court.
Representation in Court: If a dispute does escalate, solicitors can represent clients in court to settle matters related to wills, trusts, or probate.
Preventing disputes: By ensuring that your estate plan is clear and legally sound, a solicitor can reduce the likelihood of family disputes arising in the first place.

Reviewing and Updating Estate Plans

An estate plan isn’t a one-time process—it should be reviewed regularly to ensure it still reflects your wishes and current circumstances. Changes in your life, such as marriage, the birth of children, divorce, or acquiring new assets, can all impact your estate plan.

An estate planning solicitor can:

Review your will: They ensure your will is updated to reflect major life events.
Advise on changes in the law: Estate planning laws, especially around inheritance tax and trusts, can change. A solicitor keeps you informed and makes sure your plan remains legally compliant.
Update LPAs and trusts: These documents should also be reviewed regularly to ensure they reflect your current wishes and financial situation.

By maintaining an ongoing relationship with your solicitor, you can rest assured that your estate plan is always up-to-date.

Conclusion

An estate planning solicitor is an invaluable partner in ensuring that your assets are protected, your loved ones are cared for, and your wishes are respected after you’re gone. From drafting wills and trusts to navigating complex tax laws, solicitors offer expert guidance at every stage of the process.

If you’re ready to start planning your estate or need advice on updating your existing plan, consulting a qualified estate planning solicitor is the best step you can take to secure your future.

< Older Post

Newer Post >