(They must be put in place in advance)
- A Valid Will
Once someone has died, it is too late to decide how their estate should be distributed.
Without a will:
- The intestacy rules apply
- Assets may pass in unintended ways
- Unmarried partners may receive nothing
- Administration becomes more complex, expensive and stressful for the family
A will must therefore be prepared while the person has mental capacity and before death occurs.
- Lasting Powers of Attorney
If someone loses mental capacity and has not already created an LPA, their family cannot simply step in to manage their affairs.
Instead, the family must apply to the Court of Protection for a deputyship order, which is:
- slow
- expensive
- restrictive
- subject to ongoing supervision
LPAs must therefore be created before mental capacity is lost.
- Life Insurance
Life insurance can only be taken out while the person is alive and medically insurable.
Once:
- serious illness occurs, or
- death becomes imminent
it is usually impossible or prohibitively expensive to obtain cover.
- Funeral Wishes
Once someone has died, the family may not know:
- burial or cremation preference
- religious wishes
- music, readings, or personal instructions
Leaving clear instructions in advance removes uncertainty and stress from the family.
- Trust Planning
Many types of trust planning must be established before death or incapacity, for example:
- asset protection trusts
- pilot trusts for pensions
- trusts for vulnerable beneficiaries
- family wealth planning structures
These cannot be constructed retrospectively once the relevant event has occurred.
- Business Succession Planning
If a business owner dies without proper planning:
- the business may be forced to sell
- ownership may pass to unintended beneficiaries
- tax reliefs may be lost
Arrangements such as:
- shareholder agreements
- cross-option agreements
- business wills
- business LPAs
must be made in advance.
- Inheritance Tax Planning
Most tax mitigation planning must be undertaken during lifetime, such as:
- lifetime gifting
- use of trusts
- life policies in trust
- restructuring asset ownership
Once death occurs, the opportunity to plan has largely passed.
- Digital Asset Access
Modern estates often include:
- online accounts
- digital photographs
- cryptocurrency
- subscription services
- cloud storage
Without prior planning, families may be unable to access these accounts at all.
- Expressions of Wish for Pensions
Pension death benefits are usually distributed according to the member’s expression of wish.
If this is missing or outdated:
- the provider must decide who receives the funds
- the outcome may not reflect the member’s intentions
- Records of Lifetime Gifts
Where gifts have been made during lifetime, particularly to children, it is important to keep records for:
- inheritance tax purposes
- fairness between beneficiaries
- possible hotchpot calculations
Without records, it can create unnecessary disputes.
A Simple Principle
The best time to plan is when nothing appears to be wrong.
Once the need arises — death, illness, incapacity or crisis — it is often too late to put the right legal structures in place.
Good planning simply ensures that when difficult moments arrive, the family has clarity rather than confusion.
Estate planning is more than just a will!
Call Graham on 079 888 30691 for a discussion to explore what might be right for you.