Everyone wants to prepare for the future, but it can be very challenging to do so.
From guarding your assets to penning down your final wishes, there is so much to be done and so little time. However, certain legal tools and documents can make these processes much simpler.
Legal tools, if used correctly and responsibly, can help you not only plan for the future but also give your friends and family more peace of mind. While creating these documents may not always be a pleasant task, it is a crucial one.
In this article, we will cover three essential legal tools that can help you prepare for anything.
Let’s begin!
1) Lasting Powers Of Attorney
If at any point in the future, you are unable to make decisions for yourself, someone will need to make these decisions for you. A Lasting Power of Attorney allows you to choose a person you trust to make decisions for you if you lose the mental capacity to make them.
There are two types of LPAs – Property & Finance LPAs and Health & Welfare LPAs. A Property & Finance LPA allows you to appoint an attorney to make decisions about your property and financial affairs if you are no longer able to.
Meanwhile, a Health & Welfare LPA covers decisions regarding your health and welfare issues, medical treatments and care arrangements. With this LPA, you can choose someone to make these life-altering decisions if you are unable to do so yourself.
LPAs are relatively easy to set up. You just need to download, print and fill in the online power of attorney form. Then, submit it to the Office of the Public Guardian (OPG) to be registered.
Mental and physical incapacity can strike at any time and any age. That’s why it’s important to plan ahead to ease any potential burden on your family.
2) A Will
A will is a legal tool that helps determine how your estate is distributed upon your death. With a will, you can choose who you would like to leave your possessions to.
A will does not take effect until after you are no longer here. However, it is still immensely important to make one. Alongside protecting your assets from the government, a will ensures that your belongings are distributed how you want.
Moreover, you can update your will at any time to account for any major life changes or events like a wedding or a new addition to your family. A will keeps your assets safe and brings your friends and family more peace of mind.
Furthermore, your will also allows you to donate your assets to a charity (or charities) of your choice. If you wish to leave some of your assets to any charitable organisation, a will ensures that your wishes are carried out.
Having a will is a crucial part of estate planning that allows you to ensure your assets are fairly distributed and avoid discord later on.
3) A Trust
A trust is a legal arrangement wherein a person known as the trustee controls and manages the assets to benefit other people, known as beneficiaries. Once you put your assets into a trust, they are no longer yours but instead held in the trust for the person (or people) of your choosing.
Contrary to popular belief, trusts are not just for people who are well off. As they can minimise inheritance tax, trusts are a useful tool to protect assets for your beneficiaries. Additionally, they also give you control over how your assets are managed and distributed. There are multiple types of trusts available for different purposes.
From property to investments and cash, you can put almost any asset you own into a trust. A trust allows you to pass on as much inheritance as you can while taking advantage of available tax benefits.
If you’re unsure about which type of trust is best suited for your needs, you can always take the assistance of a solicitor to help make this important decision. With trusts, you need to set out clear terms and conditions to allow for the smooth transition of assets and avoid any issues later on.
To Sum Up
Legal tools and documents play a big role in helping you look out for your own as well as your family’s future.
When it comes to setting up these documents, there is no right time or perfect age. It’s best to do so as soon as you can for your own peace of mind and the benefit of your loved ones.
Just take a close look at each page of every document and make sure you completely agree with all the terms and conditions involved before making any final decisions.
