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If you die without making a Will did you know that:

2 March 2006

  • Your married partner may not receive everything you want them to
  • Your unmarried partner will get nothing, regardless of how long you have lived together or whether you have children
  • The courts will decide who will raise your children
  • An estranged or separated spouse may get all of your money
  • Assets in joint names may cause huge tax problems
  • You may be making unnecessary donations to the tax man as you cannot prevent your family being liable for a large tax bill of up to 40% on whatever exceeds the inheritance tax allowance
  • Your estate will be distributed according to rules made by the government
  • Step children and unmarried partners would have to apply to the Court for a share in your estate which means hassle and expense at a very stressful time and despite all of this, the Court may still not give them what you would have wanted
  • Your friends, family and relatives may not benefit from your estate
  • You cannot make specific gifts of personal items which are special to someone you care about
  • The cost of administering your estate will be larger than if you had left a Will

Enduring powers of attorney

Enduring Powers of Attorney are the new way to appoint someone to handle your affairs. Powers of Attorney could be used while the Donor (the person giving the power) was mentally capable of managing their affairs. However, once they became mentally incapable (just when the Power became essential) the Power of Attorney would no longer be valid.

Enduring Powers of Attorney can be used like Powers of Attorney to manage the Donor's affairs while they may be physically incapable but are mentally capable. However, they also actually endure past this point and so mean that they can be used after the Donor has lost their mental capacity.

The person making the Enduring Power of Attorney (the Donor) can choose who he or she trusts to act on their behalf. This can be one person, such as their spouse, or a mixture of people to include their children or close friends. They can protect themselves further by limiting what the Attorney is entitled to deal with and specifying whether the Attorneys must act jointly or separately.

When the Attorney(s) believe that the Donor is becoming mentally incapable of handling their own affairs, it is their responsibility to register the document with the Court of Protection. The Power will then be able to continue. Until this point it can be used as a normal Power of Attorney would be.

Enduring Powers of Attorney need to be made while the Donor is still capable of understanding what they are doing. They can be revoked at any time before the Power is registered at the Court of Protection.

With advances in medicine people are living longer lives and as a result mental illness is a serious concern. An Enduring Power of Attorney allows you to prepare for an uncertain future and protect yourself for a time when you may need it most.

For further information give us a call on +44 (0) 1753 486 777.