Who will be your executor? This is the person who sorts everything out when you’re gone. Make sure it’s someone you trust and also that they will be up to doing it. It can be a time consuming job, so it’s important to choose the right person.
If you have children under 17, you need to think about who would look after them if both parents were gone. Would you want to put money aside for their education, etc?
Who do you want to receive your worldly goods? If they’re under 18, the money would need to be looked after until they come of age. You can stipulate any age for them to receive money, but the law says that once they reach 18, they can demand their inheritance. Most parents of children under 18 don’t tell their children about this!
What are your assets? House, mortgage, savings, shares, life assurance, pensions, any antique furniture or pieces of art that are of value?
Might you be inheriting from parents at some time in the future? Of course, you don’t know when that will be, but it’s important to factor it in when considering if you might have Inheritance Tax to pay on your death.
Lasting Power of Attorney – things you need to consider:
There are two types of lasting powers: property and finance, and health and welfare. The property and finance can be used either when you have lost mental capacity, that is, you aren’t able to manage your affairs, or with your consent. Health and welfare can ONLY be used when you have lost mental capacity.
The key issue here is that you must trust whoever you are appointing. For property and finance,that person or people will effectively ‘step into your shoes’, doing everything with your money/assets that you could do if you were able/wanted to. With the health and welfare, it gives them access to your medical records, allows them to discuss medical decisions with medical professionals. Crucially, it also gives them a say in whether you should enter residential care. This is becoming a much more important part of our lives, as we are all living longer, leaving us vulnerable to dementia or other degenerative conditions. You can also choose if you want them to make decisions regarding withdrawing treatment.
You should always consider having a substitute, so that if the main person you have appointed is unable for any reason to act.
