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Why is there so much confusion around trusts? In my opinion, it is because they are often used the wrong way and not used for the right reasons. We had some clients whose attorney tried to get them to do a trust they did not need.
Fortunately for them, our client had a reliable guide to step in and tell them they did not need to spend the money to get a trust. So how do you know if you need a trust? Let’s dive in…..Story continues…
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Source: Kiplinger
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Critics:
Estate planning involves determining how an individual’s assets will be preserved, managed, and distributed after death. It also takes into account the management of an individual’s properties and financial obligations in the event that they become incapacitated. We can advise you on how to structure your property and affairs to ensure that your estate and assets pass on to your intended beneficiaries.
Our advice aims to do this in the most tax-efficient way after your death.Many financial advisors would recommend starting an Estate Plan the moment you become a legal adult, and updating it every three to five years after that. Typically, the fee is calculated at between 1% and 5% of the value of the estate, plus VAT. A small value estate is more likely to be paid on a fixed fee probate basis.
The exact cost will depend on the individual circumstances. Charges are typically settled from estate funds and not by the executor personally. Many executors and administrators act without a solicitor. However, if the estate is complicated, it is best to get legal advice. You should always get legal advice if, for example: the terms of a will are not clear.
Estate agents often try and get you to use their preferred conveyancing solicitors and for many buyers they won’t have previously worked with a solicitor and will appreciate the estate agent’s referral in the hope that the process will be quicker. Simon Martin, Chartered Financial Planner at Technical Connection, says the earlier you start estate planning around your exit, the easier it becomes. Central to this is considering the tax implications of gifting your business.
A will is a legal document that provides instructions regarding the handling of your estate after your death. Any adult over the age of 18 should consider making a will. It is important to realize that a will is not just for the wealthy. Regardless of the existence of validity of a will, if the deceased’s estate is valued above the probate threshold of the relevant financial institution and all their assets are owned under their sole name, then probate will be necessary.
Typically, executors take 8-12 months to settle an estate; however, the process can extend to two or more years in more complex cases. Executors are afforded an “executor year,” a period during which they are expected to fulfill their fiduciary duties. Whilst the Executors are able to collect or clear items from a property before Probate is granted, there are some potential issues which should be considered first.
The Executors are personally responsible for ensuring the estate is dealt with properly and in accordance with the deceased’s will. On average the percentage a solicitor will charge for executing a Will is around 1-2%. There is nothing stopping a solicitor from charging whatever percentage they want but most will be somewhere between 0.50% and 5%. Some will charge a higher percentage on liquid assets than on a property.
Either way is fine. Just do your research – when you compare both estate agents and conveyancing firms. Your estate agent should not pressure you into working with a particular firm, either with pushy selling techniques or withholding things such as offers, or sales progression services – from you. Ideally, you should write your will at the earliest opportunity. In practice, though, people tend to write theirs when they hit key milestones in life, like buying their first home, getting married or entering a civil partnership or having children.
Even if these changes don’t occur, it is wise to review your will every few years to make sure it still reflects your wishes. An attorney can help you determine if any updates need to be made in order for your wishes to be fully realized after your death. The best age to buy a house is whenever you’re ready to. Whenever you’ve… You’re halfway there, the only bits left to do are finding the house, making an offer and going through the mortgage process!
If you’re sure you’re ready to make the leap and you have the funds to do so – go for it. A real estate investment trust (REIT) is a great option for first-time investors because it doesn’t involve actively buying or managing a property. REITs are companies that own and/or operate income-producing properties, pooling the capital of a large group of investors.The executor or administrator will need to show a copy of the death certificate to any relevant banks.
The banks will then freeze the accounts until a Grant of Probate has been awarded. It’s important to notify any relevant financial institutions as soon as possible after a death. One of the most common is to set aside the withheld funds in a separate account until all outstanding debts have been paid off and any tax liabilities have been taken care of. The Executor can then distribute the remaining balance amongst the beneficiaries according to the terms of the Will.
Solicitors do not pay estate agent fees. However, they can facilitate the payment process. Upon completion of the sale, the solicitor handling your transaction will arrange for the estate agent’s fee to be paid out of the sale proceeds before transferring the balance to you.
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