© Thomson Snell & Passmore 2010 Introduction to Wills and Trusts : Planning for the Future SCAMPPS 30 September 2010 Brian Bacon.

© Thomson Snell & Passmore 2010

Introduction to Wills and Trusts :Planning for the Future

SCAMPPS

30 September 2010

Brian Bacon

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

Providing in wills for family

members with learning difficulties

Using trusts

Other points

Questions

Introduction

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

Rules of Intestacy - 1925

Controlling ultimate destination of your property

Appointment of Executors

Certainty

Inheritance Tax Planning

WHY MAKE A WILL? DOES IT MATTER?

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- THE COURT OF PROTECTIONBENEFICIARIES WITH A LEARNING DISABILITY - THE COURT

OF 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

• Bad press: “Secret Court seizes £3.2bn from elderly”

• Criticisms: Controlling vs leniency

• Misunderstanding

THE COURT OF PROTECTION

Introduction to Wills and Trusts : Planning for the Future

BENEFICIARIES WITH A LEARNING DISABILITYBENEFICIARIES WITH 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 SOLUTION?

Make a Will

Charitable legacies – indirect benefit

Set up a Trust

What are the options?

Introduction to Wills and Trust : Planning for the

Future

What is a trust? IS IT?Legal Concept

Settlor

Trust Fund

Trustees

Beneficiaries

What is a trust?

Introduction to Wills and Trusts : Planning for the Future

WHY SET UP 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

Benefits of a trust?

Introduction to Wills and Trusts : Planning for the Future

THE GIFT TO YOUR BENEFICIARY?

“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

Example

Introduction to Wills and Trusts : Planning for the Future

TYPES OF TRUSTS

Life Interest Trust (IPDI)

Protective Trust

Charitable Trust

Discretionary Trust

s.89 Trusts

Disabled Trusts

Types of trust

Introduction to Wills and Trusts : Planning for the Future

DISCRETIONARY TRUSTS

How do they work?

Letter of Wishes

Flexibility

Trustees

Trust Management

Discretionary trusts

Introduction to Wills and Trusts : Planning for the Future

LIFETIME TRUST

What is it?

Resources?

Future additions by other family members

Lifetime trust

Introduction to Wills and Trusts : Planning for the Future

OTHER POINTS TO CONSIDER - WILLS

Capacity

List of assets and how they are held

Trustees

Professional / family / friends

Trust Company

Guardianship

Key points to remember

Introduction to Wills and Trusts : Planning for the Future

OTHER POINTS TO CONSIDER - WILLS

Specific and residuary gifts

Your or others future inheritance

Death in Service Benefits

Reviewing your will and obtaining professional advice

Lasting Powers of Attorney

Other points to remember

Introduction to Wills and Trusts : Planning for the Future

QUESTIONS