Download NEWS RELEASE 23.09.09 Death becomes us – tips for planning for

NEWS RELEASE
23.09.09
Death becomes us – tips for planning for the inevitable
Mention the names Michael Jackson and Farrah Fawcett until recently and you
probably would have thought of ‘moonwalking’, the Jackson 5 and Charlie’s
Angels - at least, that would have been the case until their respective untimely
demises.
Now, in the case of Michael Jackson, you probably think of battles over custody
of children and the distribution of assets: while estate planning issues and the
problems associated with making provisions for a child unable to control their
inheritance directly spring to mind in the case of Farrah Fawcett.
These two recent cases have highlighted the importance of planning for our own
deaths to protect your estate and your family - clearly setting out how we wish
our affairs to be handled and how we wish our estate to be distributed. Specific
direction can have a very significant positive impact for our loved ones. Recent
changes in the law and a new market initiative have made this a simpler process
than in the past.
The 5 basic points to consider:
1. Make a will - It would appear that in our straitened economic times this
most basic tool is being neglected. According to the Law Society one in
three people in the UK die intestate and over half of all people over the age
of 45 have not made a will. Mark Buzzoni, Partner at Taylor Wessing
commented: “At the moment we are all tightening our belts but this is
something which none of us should neglect; it could leave a huge mess for
those whom we intend to benefit. If you care about your property and what
happens to it after you die – make a will and review it regularly. Many
people believe, mistakenly, that if they die intestate their entire estate will
pass to their spouse but only with a will is that outcome assured.
2. Funeral arrangements - although no one really wants to think about this,
if no plan is made then the cost of the funeral will come out of the estate
and, since winding up an estate is a slow process, this can take over a year.
The cost may have to be borne by relatives in the interim period. Many
funeral directors offer a funeral payment plan which ensures that funeral
costs will be covered and will not be a burden to relatives. Visit
www.nafd.org.uk for further information.
3. Financial matters – this area is becoming increasingly complex in
modern times. Colin Woodcock, Marketing Director for Asset Checker,
explained: ”These days, about 65% of probate cases involve at least one
shareholding, meaning that more people need to obtain a grant of probate in
order to conclude the estate. Not only is it important to make sure that all
paperwork is held together in a safe place but it is worth checking whether
your solicitor or probate professional is using an efficient and reliable share
tracing register. This will enable your estate to be concluded much more
quickly and ensure that your beneficiaries receive their entitlement without
any unnecessary delay.” www.assetchecker.co.uk can provide guidance in
this area.
4. Life Insurance – this is an important consideration as it will provide
financial security for your dependants, including children or a partner,
should you die. The policy will provide a cash sum based on a multiple of
your salary at time of death. Many employers offer this as part of their
benefits package – it’s worth checking out whether you can sign up at work.
5. Lasting Power of Attorney (LPA) – it is important to consider what we
would want to happen should we become incapable of making decisions for
ourselves. Whilst of sound mind, you have the option to set up a Lasting
Power of Attorney which details who you would wish to act for you should
the worst happen. This can either be a professional, such as a solicitor, or a
relative or friend. An LPA can be a relatively low cost addition when drafting
a will which ensures that relatives do not have to go through complex and
protracted court procedures in order to manage your affairs.
The purpose of estate planning has changed in recent times; it is no longer the
preserve of the wealthy as a tax-planning tool but now serves to avoid burdening
heirs with the stress of a protracted and complicated probate process. It is
important for everyone who cares about what happens to their assets to plan for
the future.
Michael Jackson’s case has highlighted what can go wrong if we do not plan
sufficiently; whilst Farrah Fawcett’s shows that meticulous planning can cover all
eventualities.
–
ENDS –
All media enquiries:
Jane Burgess [email protected]
Barker Brooks Media 01423 851150
Note to editors:
The Asset Checker website gives solicitors and probate professionals the facility
to search share registers, by name of the deceased, across all the companies for
which Capita and Computershare provide share registration services – around 15
million shareholdings or 3000 companies.