© thomson snell & passmore 2010 introduction to wills and trusts : planning for the future...
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© Thomson Snell & Passmore 2010
Introduction to Wills and Trusts :Planning for the Future
SCAMPPS
30 September 2010
Brian Bacon
Jargon
“Every Constituency Labour Party (“CLP”) and Branch Labour Party (“BLP”) affiliated to this Party and as a precondition to continued
affiliation thereto shall with effect from forthwith do and execute such acts and deeds to transfer the beneficial ownership of their respective freehold and leasehold properties legal title to which is presently held wither by individuals or by Labour Party Nominees Limited to and for
the benefit of The Labour Party subject only the CLP’s and BLP’s existing rights of occupation thereof and to their continued receipt of
all the rents and profits therefrom and the right to license and to lease the said properties from time to time subject to the prior written
consent of the National Executive Committee but subject to the CLP’s and BLP’s continuing respective obligations in respect of any
borrowings secured on such properties”
Introduction to Wills and Trusts : Planning for the Future
Providing in wills for family
members with learning difficulties
Using trusts
Other points
Questions
Introduction
Introduction to Wills and Trusts : Planning for the Future
• OFT figure : 53 % of adults have not made a will
• In 2009, 60% of registered deaths were intestate
Introduction to Wills and Trusts : Planning for the Future
Rules of Intestacy - 1925
Controlling ultimate destination of your property
Appointment of Executors
Certainty
Inheritance Tax Planning
WHY MAKE A WILL? DOES IT MATTER?
Introduction to Wills and Trusts : Planning for the Future : Why make a will?
Extending statutory powers
Appointment of Guardians
Funeral Directions
Constant Review
Introduction to Wills and Trusts : Planning for the Future
BENEFICIARIES WITH A LEARNING DISABILITY
BENEFICIARIES WITH A LEARNING DISABILITY
What do we mean by a learning disability? Mental Capacity Act provides a definition : “unable to make a decision due to an impairment of, or a disturbance in the functioning of, the mind or brain”
Rules of Intestacy
Court of Protection
Introduction to Wills and Trusts : Planning for the Future
BENEFICIARIES WITH A LEARNING DISABILITY- THE COURT OF PROTECTIONBENEFICIARIES WITH A LEARNING DISABILITY - THE COURT
OF PROTECTION
• A Superior Court of record
• The Court has the same powers
as the High Court
Introduction to Wills and Trusts : Planning for the Future
• Bad press: “Secret Court seizes £3.2bn from elderly”
• Criticisms: Controlling vs leniency
• Misunderstanding
THE COURT OF PROTECTION
Introduction to Wills and Trusts : Planning for the Future
BENEFICIARIES WITH A LEARNING DISABILITYBENEFICIARIES WITH A LEARNING DISABILITY
Rules of Intestacy
Court of Protection - The Mental Capacity Act 2005
Means Tested Benefits and Local Authority Provision
Enhanced share
No provision at all? Risk of Local Authority claim
Introduction to Wills and Trusts : Planning for the Future
THE SOLUTION?
Make a Will
Charitable legacies – indirect benefit
Set up a Trust
What are the options?
Introduction to Wills and Trust : Planning for the
Future
What is a trust? IS IT?Legal Concept
Settlor
Trust Fund
Trustees
Beneficiaries
What is a trust?
Introduction to Wills and Trusts : Planning for the Future
WHY SET UP A TRUST?
IHT Planning – direct planning and by-product of a trust
Protecting Beneficiaries
Court of Protection – The Mental Capacity Act 2005
Beneficiaries with Learning Disabilities
Benefits of a trust?
Introduction to Wills and Trusts : Planning for the Future
THE GIFT TO YOUR BENEFICIARY?
“I leave half my residuary estate to John absolutely”
A minor or adult without capacity cannot hold property in their own name
Court of Protection
Means tested benefits
Example
Introduction to Wills and Trusts : Planning for the Future
TYPES OF TRUSTS
Life Interest Trust (IPDI)
Protective Trust
Charitable Trust
Discretionary Trust
s.89 Trusts
Disabled Trusts
Types of trust
Introduction to Wills and Trusts : Planning for the Future
DISCRETIONARY TRUSTS
How do they work?
Letter of Wishes
Flexibility
Trustees
Trust Management
Discretionary trusts
Introduction to Wills and Trusts : Planning for the Future
LIFETIME TRUST
What is it?
Resources?
Future additions by other family members
Lifetime trust
Introduction to Wills and Trusts : Planning for the Future
OTHER POINTS TO CONSIDER - WILLS
Capacity
List of assets and how they are held
Trustees
Professional / family / friends
Trust Company
Guardianship
Key points to remember
Introduction to Wills and Trusts : Planning for the Future
OTHER POINTS TO CONSIDER - WILLS
Specific and residuary gifts
Your or others future inheritance
Death in Service Benefits
Reviewing your will and obtaining professional advice
Lasting Powers of Attorney
Other points to remember
Introduction to Wills and Trusts : Planning for the Future
QUESTIONS