W.Insight: Why do you need a will?

Welcome to our W.Insight Series

We’re excited to launch W.Insight, a new educational series created to cut through the jargon and provide you with the knowledge you need to make informed decisions for both your personal and professional life.

Life is busy, and it’s easy to feel overwhelmed by the endless admin that comes with future-proofing and protecting your money, health, and wellbeing.?

As part of this, we have teamed up with law firm?Irwin Mitchell, to curate a six-part "Ask Sarah" legal insight?series.?

Written and led by Senior Associate Sarah Paton, we will share clear and accessible guidance on key legal issues that, if left unaddressed, can have significant consequences.

Our first article gives guidance on wills and lasting powers of attorney, but as the name suggests, we’d love you to get in touch with your burning legal questions so we can tackle the topics you want to know more about.?

Getting Your Personal Affairs in Order: Why Now is the Time

As we move into autumn, a season often associated with restoration and reflection, it’s the perfect opportunity to focus on putting our "houses" in order—literally and figuratively.?

One of the most important steps you can take during this time of reflection is to review your legal affairs. Ensuring you have key documents like a will and lasting powers of attorney (LPA) in place is crucial in safeguarding your future and providing peace of mind for you and your loved ones.

Why You Need a Will

A will is more than just a legal document—it’s a way to ensure that your wishes are respected and that your loved ones are protected. Here’s why having a will is essential:

• Control Over Asset Distribution: Without a will, your assets will be distributed according to the laws of intestacy, which may not align with your personal wishes.
• Guardianship of Minor Children: A will allows you to appoint a guardian for your minor children, ensuring they are cared for by someone you trust.
• Minimise Family Disputes: Clearly outlining your wishes in a will can help prevent disputes among family members.
• Tax Efficiency: Proper estate planning can help reduce the tax burden on your estate, ensuring more of your assets go to your loved ones.

While wills can be straightforward and set out in black and white who gets what and when, a more flexible structure may be needed to provide greater protection for your family in the long run. For example, if one of your beneficiaries is mid-divorce at the time of your death, their inheritance might pass quickly through their hands and into the hands of their soon-to-be ex-spouse. ?

It’s also important to think about possible protection for your assets after the first death. If your partner remarries or enters a new relationship following your death, assets left to them could potentially end up with a new family rather than with your shared children. By considering these scenarios, you can create a more robust will that ensures your wishes are honoured even in complex situations. For business owners, a will is especially crucial. It ensures that both your personal and business assets are handled according to your wishes, helping prevent potential conflicts and providing a clear succession plan for your business.

Lasting Powers of Attorney: Why They Matter

While many people understand the importance of a will, fewer realise the critical need for lasting powers of attorney (LPA). An LPA allows you to appoint someone you trust to make decisions on your behalf if you are unable to do so. There are two types of LPA:

1. Health and Welfare LPA: This allows your appointed attorney(s) to make decisions about your medical care, living arrangements, and other personal welfare matters.
2. Property and Financial Affairs LPA: This allows your attorney(s) to manage your finances, such as paying bills, managing bank accounts, or selling property.

Common Misconceptions about LPAs:

• “I’m not old enough to need an LPA.” Incapacity isn’t only caused by age-related conditions such as Alzheimer’s or dementia. It could be due to an accident, illness, stroke, or other unexpected events. During the pandemic, for instance, patients placed on ventilators were temporarily incapacitated, highlighting the need for LPAs at any age.
• “I Have a Will, So I Don’t Need an LPA.” A will only comes into effect after your death. Until that time, your executors have no power. An LPA, on the other hand, grants authority to trusted individuals to act on your behalf during your lifetime if you become incapacitated.
• “My next of kin will deal with everything.” The concept of "next of kin" does not grant automatic authority to make decisions on your behalf, either financial or medical. Without an LPA, your family members may be powerless during a medical emergency.
• “Everything is held jointly, so I don’t need an LPA.” This is a common myth that can lead to significant stress. Even if your assets are jointly held, banks typically freeze joint accounts once they become aware that one account holder has lost mental capacity. This can lead to cashflow issues, especially if the incapacitated person needs care or there are bills to pay. Without an LPA, families may need to go through a lengthy and costly court process to resolve this.

The Women’s Chapter is committed to providing you with a supportive space to access the knowledge and tools you need to protect your personal and professional life. In collaboration with Irwin Mitchell, we hope this series will make legal topics more approachable and help you take those essential steps toward securing your future.

If you want to know more please reach out to Sarah for a chat.?

Get in touch with Sarah from Irwin Mitchell - [email protected]