1. egg

    egg Registered User

    Jul 31, 2004
    36
    Birmingham
    wiils or WILLS as they loom very large in my mind at present.

    I am really struggling with doing our wills. (I know we should have done them before). And I am spending a fortune on asking the solicitor questions so can anyone help.

    Scenario – me , my hubby and two sons who LIVE AT HOME and one of them is still under age - capitals bit is very important. Not much actual money to leave but a house.

    We aim to leave most of money to sons (split equally) but before that we would leave our money and house to each other but I am struggling because do we (either of us) leave our half of house to them direct rather than to each other to avoid it being taken into consideration for benefits – what happens to hubby if I die first – I expect you can work out all the questions.

    Because they live in the house and look like doing so for quite a while it complicates things because otherwise if we both died the house would just be sold for money for them.

    Please if anyone has time could they give me any tips?

    Thanks

    egg

    PS In case anyone is now wondering why I am still struggling with caring when I have two sons at home just believe me there are reasons why them being at home doesn’t immediately solve all my caring worries.
     
  2. Kriss

    Kriss Registered User

    May 20, 2004
    513
    Shropshire
    Do you have an Independant Financial Advisor at hand? You need one!

    It is possible it would be better to set up a Trust arrangement - I'm not much good with the details here just have had conversations along similar lines in recent years.

    I personally wouldn't use your banks IFA but thats just down to my own experience. I use an independent firm who I dealt with initially through a working situation - they actually give me the confidence that I "matter" and that I am not just a record on their computer! My Aunt fortunately took the same chap on board so now he is dealing with both situations for me (and my Mother as well for good measure). We have all been able to talk quite openly with him. As a bonus he's got a lot of "oldies" on his books, many in care situations, so he's very practical.

    Its a big concern and you'll need professional guidance. Don't take on board the first one you meet if you have any reservations. You have to trust them so you should have no doubts at all when you appoint them.

    Kriss
     
  3. Jude

    Jude Registered User

    Dear Egg,

    Wills are a big headache. Perhaps I can pass on the advice that my solicitor has given to me, if it helps at all.

    Firstly, my parents made Wills ages ago before they were diagnosed with AD. They did the usual thing - which is for a husband and wife to bequeath to each other all their worldy possessions [house, land, finances, etc]. They then bequeathed whatever was left at the death of the second party, to my brother and myself in equal parts.

    In setting up a Will in this way, they effectively cut themselves out of one of the nil band rates applicable for Inheritance Tax. Every individual is allowed to currently hold £263,000 in untaxable assets, unless they bequeath all assets to one another, in which case only one set of nil band rate tax applies. This means that anything over £263,000 can be taxed upon death at a rate of approx 40% of the remaining assets on the death of the first party.

    My solicitor has suggested that I as POA, added a codicil to my parents' wills to ensure that upon the death of the first parent, the sum of £263,000 is 'gifted' to myself and my brother which is quite legally acceptable. The balance of the estate, upon the death of the second parent would be the only amount taxable IF it exceeded a further £263,000.

    There is some talk of raising the current nil band rate to £500,000 because so many people now fall into the Inheritance Tax bracket.

    Does this make sense?

    You also need to investigage an 'ongoing POA' which doesn't kick in until either you or your husband is unable to make financial decisions for yourselves.

    Whatever you decide, just make sure that you don't make the Inland Revenue the biggest beneficiary under your Wills...!!

    Best wishes,

    Jude
     
  4. egg

    egg Registered User

    Jul 31, 2004
    36
    Birmingham
    thanks

    thanks Kriss , Jude , Nada,

    You ahve already given me soem good dieas.

    I reckon i do need soem advice from someone who knows about situations that involve carring and care homes.

    the solicitor is brilliant but he only does wills and i think i ahev asked one question too many and each one costs!


    I don't think that i need to worry about inheritance tax as we aren't in that bracket but trusts and what to do about who to leave the house to is a complex one.

    the fact that it is yod makes a huge difference because there is the possibilty that i shall be in a situation where i would want the money from the house to do other things in years to come and if it was all in trusts then it is tied up.

    Anywya as usual i rabbit on - but thanks

    i realise i need some professional help from someone who has specialist knowledge.

    egg
     
  5. egg

    egg Registered User

    Jul 31, 2004
    36
    Birmingham
    thanks nada

    thanks

    I will keep this in mind but wouldn't want to bother them if they are really trying to raise money.

    On reflection I think I need to find out how the care home thing works.

    I realise that I am woefully ignorant.

    Am I correct in thinking that there are NHS homes which means test your income or assets and also private homes as well?

    Do private homes take anything from the NHS?

    Sorry - a big gap in knowledge here.

    Is there any info on the web site and if not could any be added?

    Many thanks


    egg
     
  6. Jude

    Jude Registered User

    Dear Egg,

    I think from memory that most if not all NHS and private Care Homes are means tested and I seem to remember that the bottom line was around $12-16,000. Any assets under that mean that patients are granted free[ish] admission.

    A lot of Homes encourage people to take out annuities to pay for the total ongoing care fees for the rest of one's life. It seemed a bit dodgy to me...

    My parents were assessed on their assets and my parents were encouraged to pay into Care Funds at £125,000 and £150,000 respectively. This pretty well stopped me dead in my tracks! The deal was that I'd pay for total life cover for each of the oldies, but if one or other of them died a week after the contribution, then no monies whatsoever would be refunded. The life cover people also wanted full access to their pensions and any Govt allowances. It seemed pretty extreme to me at the time.

    I'm sure Nada will be able to dig up some info on this topic next week. I binned all the info last year, so have no available data to give you, but will try and find out a bit more.

    Sorry not to have been more help here.

    Jude
     
  7. Norman

    Norman Registered User

    Oct 9, 2003
    4,348
    Birmingham Hades
    Egg
    excellent advice from Kriss.
    the best thing that we ever did was to find a financial advisor.he put all our finance in apple pie order,arranged pre paid funerals,EPAs and wills. Over the years he has been a good friend.
    They will tell you ,they are bound too,what costs are involved but usually they receive commision on arrangments they make like funerals,investments etc.
    A financial advisor can be found at www.unbiased.co.uk/
    Details for any area is shown.
    I can't begin to explain will writing but he wrote our wills and there is a trust arrangement in them.

    Good luck
    Norman
     
  8. Jude

    Jude Registered User

    Dear Norman,

    Thanks for such sound advice. I think I might just double check things too, for later on.

    Jude
     
  9. Kriss

    Kriss Registered User

    May 20, 2004
    513
    Shropshire
    Dear Egg

    everyones situation is different hence why I would avoid the big banks and similar institutions.

    Trusts may not be as "fixed" as you might imagine but do ask the professionals. An IFA should be willing to come out and discuss your situation with no committment or charge. If you then want to proceed with the detail I would expect them to be paid out of any proceeds or dealings so you don't need to worry about bills dropping on the mat.

    Good luck

    Kriss
     
  10. egg

    egg Registered User

    Jul 31, 2004
    36
    Birmingham
    thanks

    Thanks evryone who has sent helpful ideas. I shall look into all this now.

    brilliant

    and thanks for all the bits i read and don't respond to - you are so kind and helpful.

    egg
     
  11. egg

    egg Registered User

    Jul 31, 2004
    36
    Birmingham
    i didn't look carefully enough

    Thanks Nada,

    I really must look more crefully at the alz soc web site as it does cover so much.

    Many thanks

    egg
     

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