PROFESSIONAL WILL WRITING
What is a trust?
A trust is a formal transfer of assets (ie property, land, shares or just cash) to a small number of people (usually two or three) with instructions that they hold the assets for the benefit of others.
A trust is a way of managing assets (property, money, investments, land or buildings) for people. There are many types of trusts
The main types of trust are:
Why set up a Trust?
Trusts can be set up for a number of reasons:
LASTING POWERS OF ATTORNEY
Lasting Power of Attorney is a legal document. It allows you to appoint someone that you trust as an “Attorney” to make decisions on your behalf, when you no longer wish to or when you lack the mental capacity to do so. A Lasting Power of Attorney can help you plan how your health, well being and financial affairs will be looked after.
Why you need them in place
Your bank accounts can be frozen if you lose mental capacity. Without a LPA it can take months to get the same powers from the Court of Protection, which can also be costly.
The decisions you want to be made, will be made on your behalf by the people you want to make them.
Your Attorney(s) must follow the Code of Practice of the Mental Capacity Act 2005 and act in your best interests.
Just because you may be married or in a civil partnership, that your spouse/partner can automatically make decisions for you, should you lose mental capacity as they won’t have the authority to do so.
There are two types of power of attorney:
Health and Welfare
Health and Welfare decisions and can only be used once you have lost mental capacity. Your attorney can generally make decisions about things such as:
Furthermore, you can also give special permission for your attorney to make decisions about life-saving treatment.
Property & Financial Affairs
This can be used while you still have mental capacity or you can state that you only want it to come into force if you lose capacity.
LPA Property and Financial Affairs covers things such as:
You can set out restrictions on the types of decisions your attorney can make, or let them make all decisions on your behalf.
Your attorney must keep separate accounts and make sure their accounts and monies are kept separate from yours.
You can ask for regular statements of how much they have spent and how much money you have. This will provide you an extra layer of protection. The details can be sent to your solicitor or a family member if you lose capacity.