RDP Law’s Post

What happens if you pass away without a will? One of the main reasons for properly drafting a will is so that you can specify how you want your estate to be distributed. Without a valid will, this responsibility falls to the court to manage which not only adds significant delays but complications to the division of your estate Without a named executor, the courts will be left to appoint a person to take care of your estate which can often take weeks if not months. During this time, no one can manage any of the assets in the estate. This in itself can create problems for the surviving family as bills could potentially go unpaid, and support from the estate would not be received Once an executor is chosen then, after settling the debts of your estate, provincial laws determine how the remaining estate is divided amongst heirs. Depending on the province of passing, the first portion of the estate goes to the surviving spouse as his/her preferential share. This share is not necessarily 100% and the larger the estate, the less likely that it will be If a surviving spouse feels that this preferential share is unfair or inadequate, they have the right to apply to the courts for a greater amount. Not only does this add additional costs to the settlement of the estate, it delays any further distribution of assets. Only once the spouse’s claim is settled, will the remainder of the estate, or the residue, be distributed by provincial laws At the distribution of the residue, children will now become direct beneficiaries of assets from the estate. In the case of a minor, these assets will be held in trust by the courts till the child reaches the age of majority. At this time, the child will be given the full amount owed to them. Over this time once again there will be no access to the funds without going through the courts By taking the time to set up your will with a lawyer, you avoid all of the above while passing assets on the way that you intended in a much more cost-effective and expedient manner Comment below with thoughts and questions For more information on these and other planning strategies, please message me separately #willplanning #estateplanning #financialplanning

In Jessica Franks’ latest Money Marketing column, she discusses how despite being in place for many years now, the residence nil-rate band still has an aura of “newness” about it. She comments that this likely stems from the fact that, compared to the nil-rate band, it feels complicated. While being a very welcome incremental inheritance tax allowance available to most estates, there are some details, complexities and pitfalls to be mindful of. It’s an area where advice feels especially valuable to most families. Read more here to learn about how the £2m taper threshold works and a client planning scenario that explains this more clearly: https://bit.ly/3VMEqRp

Here are my post budget thoughts regarding the changes as they pertain to the administration of estates.

Always worth paying attention to Rachel Pinn's analysis. Her latest blog on changes to the #probate process is below

A very helpful, high-level summary from Rachel Pinn as to what the Budget changes mean in a probate context:

Married couples and civil partners may be able to pass on up to £1 million of their estate tax-free with the Residence Nil Rate Band. Claiming this transferable allowance could secure your family home for future generations. Make sure your estate planning takes this into account. #InheritancePlanning #RNRB #TaxFreeEstate

Married couples and civil partners may be able to pass on up to £1 million of their estate tax-free with the Residence Nil Rate Band. Claiming this transferable allowance could secure your family home for future generations. Make sure your estate planning takes this into account. #InheritancePlanning #RNRB #TaxFreeEstate

Important considerations to take into account if you are an executor paying estate expenses out of pocket

Follow this estate planning checklist for you (and your heirs) to hold on to more of your hard-earned money. #citizenscolleague #WealthManagement #Citizens

With many family businesses, including farming families, facing an inheritance tax charge on death following the recent Budget and the curtailment of the availability of inheritance tax Business Property Relief (BPR) and Agricultural Property Relief (APR), the need for family businesses to succession plan will become even more important. If you have not updated your succession plan in the last year book a free consultation at https://lnkd.in/eiinTAT8 to discuss your business's succession plan.