Introduction to Wills and
Trusts :
Planning for the Future
SCAMPPS
30 September 2010
Brian Bacon
© Thomson Snell & Passmore 2010
Jargon
“Every Constituency Labour Party (“CLP”) and Branch Labour Party
(“BLP”) affiliated to this Party and as a precondition to continued
affiliation thereto shall with effect from forthwith do and execute such
acts and deeds to transfer the beneficial ownership of their respective
freehold and leasehold properties legal title to which is presently held
wither by individuals or by Labour Party Nominees Limited to and for
the benefit of The Labour Party subject only the CLP’s and BLP’s
existing rights of occupation thereof and to their continued receipt of
all the rents and profits therefrom and the right to license and to lease
the said properties from time to time subject to the prior written
consent of the National Executive Committee but subject to the CLP’s
and BLP’s continuing respective obligations in respect of any
borrowings secured on such properties”
Introduction to Wills and Trusts : Planning for the
Future
Introduction
Providing in wills for family
members with learning difficulties
Using trusts
Other points
Questions
Introduction to Wills and Trusts : Planning for the
Future
• OFT figure : 53 % of adults have not made a will
• In 2009, 60% of registered deaths were intestate
Introduction to Wills and Trusts : Planning for the
Future
WHY MAKE A WILL? DOES IT MATTER?
Rules of Intestacy - 1925
Controlling ultimate destination of your property
Appointment of Executors
Certainty
Inheritance Tax Planning
Introduction to Wills and Trusts : Planning for the
Future : Why make a will?
Extending statutory powers
Appointment of Guardians
Funeral Directions
Constant Review
Introduction to Wills and Trusts : Planning for the
Future
BENEFICIARIES WITH A LEARNING DISABILITY
BENEFICIARIES WITH A LEARNING DISABILITY
What do we mean by a learning disability? Mental Capacity Act
provides a definition : “unable to make a decision due to an
impairment of, or a disturbance in the functioning of, the mind or
brain”
Rules of Intestacy
Court of Protection
Introduction to Wills and Trusts : Planning for the
Future
BENEFICIARIES
WITH
A LEARNING
DISABILITY
BENEFICIARIES WITH
A LEARNING
DISABILITY
- THE COURT
- OF
THE
COURT OF PROTECTION
PROTECTION
• A Superior Court of record
• The Court has the same powers
as the High Court
Introduction to Wills and Trusts : Planning for the
Future
THE COURT OF PROTECTION
• Bad press: “Secret Court seizes £3.2bn from elderly”
• Criticisms: Controlling vs leniency
• Misunderstanding
Introduction to Wills and Trusts : Planning for the
Future
BENEFICIARIES
WITH WITH
A LEARNING
DISABILITY
BENEFICIARIES
A LEARNING
DISABILITY
Rules of Intestacy
Court of Protection - The Mental Capacity Act 2005
Means Tested Benefits and Local Authority Provision
Enhanced share
No provision at all? Risk of Local Authority claim
Introduction to Wills and Trusts : Planning for the
Future
THE
What SOLUTION?
are the options?
Make a Will
Charitable legacies – indirect benefit
Set up a Trust
Introduction to Wills and Trust : Planning for the
Future
What
Whatisisa atrust?
trust? IS IT?
Legal Concept
Settlor
Trust Fund
Trustees
Beneficiaries
Introduction to Wills and Trusts : Planning for the
Future
WHY SET UP A TRUST?
Benefits of a trust?
IHT Planning – direct planning and by-product of a trust
Protecting Beneficiaries
Court of Protection – The Mental Capacity Act 2005
Beneficiaries with Learning Disabilities
Introduction to Wills and Trusts : Planning for the
Future
THE
GIFT TO YOUR BENEFICIARY?
Example
“I leave half my residuary estate to John absolutely”
A minor or adult without capacity cannot hold property in their
own name
Court of Protection
Means tested benefits
Introduction to Wills and Trusts : Planning for the
Future
TYPES OF TRUSTS
Types of trust
Life Interest Trust (IPDI)
Protective Trust
Charitable Trust
Discretionary Trust
s.89 Trusts
Disabled Trusts
Introduction to Wills and Trusts : Planning for the
Future
DISCRETIONARY TRUSTS
Discretionary trusts
How do they work?
Letter of Wishes
Flexibility
Trustees
Trust Management
Introduction to Wills and Trusts : Planning for the
Future
LIFETIME TRUST
Lifetime trust
What is it?
Resources?
Future additions by other family members
Introduction to Wills and Trusts : Planning for the
Future
OTHER
POINTS
TO CONSIDER - WILLS
Key
points to
remember
Capacity
List of assets and how they are held
Trustees
Professional / family / friends
Trust Company
Guardianship
Introduction to Wills and Trusts : Planning for the
Future
OTHER
TO CONSIDER - WILLS
Other
pointsPOINTS
to remember
Specific and residuary gifts
Your or others future inheritance
Death in Service Benefits
Reviewing your will and obtaining professional advice
Lasting Powers of Attorney
Introduction to Wills and Trusts : Planning for the Future
QUESTIONS