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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.