The end of a year is always a good time to reflect on what we have done, and to think of how we may do things differently in the future by making some resolutions for the twelve months that lie ahead.
No one likes to think about the possibility of becoming ill but putting your affairs in order and making sure you have the right legal documents in place to protect you and your loved ones can save a lot of heartache further down the line.
In this article, our experienced Private Client solicitors look at some of the main legal documents that everyone should consider.
1. Will.
A Will is a legal document that sets out what happens to your money, property and possessions after your death.
Making a Will is the only way you can ensure that your wishes are carried out and that your loved ones are taken care of after you pass away. Regardless of your age, wealth and health, everyone aged 18 and over should have a Will.
Find out more in our ‘Frequently Asked Questions About Wills’ by clicking here.
2. Lasting Powers of Attorney.
A Lasting Power of Attorney (LPA) is a legal document that allows an individual to appoint one or more people (known as attorneys) to make certain decisions on their behalf if they lose the capacity to make those decisions themselves.
Some people put off making an LPA as they think they are only necessary for the elderly. But this is not the case. Capacity can be lost for various reasons, such as through an accident, illness, or because of mental health problems, on both a short-term and permanent basis, by people of all ages.
It is also worth noting that if you lose capacity and don’t have an LPA, your next of kin does not automatically have the right to make decisions on your behalf or access your finances, even if it is for your care.
Instead, they must apply to the Court of Protection to act as a deputy on your behalf, which can be time-consuming, stressful and expensive.
There are two main types of LPA:
- LPA for property and financial affairs. This type of LPA allows one or more attorneys to make financial decisions on an individual’s behalf, which can include paying bills, managing bank accounts, collecting benefits or a pension, and selling the donor’s home.
- LPA for health and welfare. This allows a person to appoint an attorney to make decisions about their daily routines, such as washing, dressing and eating.
We would recommend that everyone over the age of 18 who has capacity makes both LPAs. Making them doesn’t mean that you will use them, just that they are there in case you ever need them.
Read our previous blog ‘Why Everyone Needs a Lasting Power of Attorney’ by clicking here.
3. Cohabitation Agreement.
An increasing number of couples in England and Wales are now choosing to live together rather than getting married or becoming civil partners.
However, there is no such thing as common-law spouses. Living together without being married or in a civil partnership means you do not have the same legal rights as a married couple about property, finances and children.
If a relationship between an unmarried couple breaks down, the same rules do not apply, regardless of how long you may have been together or if you have children.
The best way for unmarried cohabiting couples to protect themselves and their assets is to make a cohabitation agreement.
A cohabitation agreement sets out who owns what, what a couple’s financial responsibilities towards each other will be, and how assets will be divided should the relationship break down.
Read more about Cohabitation Agreements here.
Private Client Solicitors Wisbech
There are many other legal documents individuals should consider, depending on their particular circumstances.
At Bowsers Solicitors, our experienced private client solicitors in March and Wisbech appreciate that every situation is unique. When we meet with our clients, we take the time to fully comprehend their personal situations, priorities and intentions.
We understand that it can feel overwhelming to prepare for death, particularly at a young age. Still, unfortunately, life is unpredictable, and it is always favourable to be prepared and prevent your loved ones from trying to obtain the rights to your assets and finances at an already emotional time.
If you are looking for private client advice, please contact our experienced private client solicitors and chartered legal executives today on 01945 583194 (Wisbech) or 01354 652606 (March), or email reception@bowsers.co.uk. Alternatively, you can fill in our contact form.
