Hints and Tips on Dividing Your Estate

There comes a stage in our lives where making a will is of great importance, even if you feel fit as a fiddle! Unfortunately, we can never predict what’s around the corner but what we can do is ensure we are prepared and our loved ones are protected in the event of death.

It’s not the easiest subject to consider but, instead of shying away from the truth, it’s time to get your affairs in order and decide how you will divide your estate. Here a few top tips to get you started dividing your estate…

Setting Up an Estate Plan

Use Online Resources

Sure, writing up your will isn’t the most exciting way to spend your Saturday evening but it’s a fairly quick process and there is plenty of advice online to give you a helping hand and ensure your will is written up correctly. You will need to make decisions as to how you want your estate to be divided up.

You will need to choose who will receive your house, who will be entitled to your assets, and even decisions such as who will take care of any pets or dependants if you pass away. With everything already drawn up, this will save your family and friends a lot of time and stress.

Choose Your Executor

Appointing an executor is an important part of the will-making process, this is someone who will oversee your assets being released and ensure they are being divided up as you desired. You are able to select up to four executors, although some people prefer to just choose one.

Generally, executors are close family members such as your spouse or a sibling. There is also the option of choosing an external executor if you don’t wish to use a family member. This could be a solicitor or a public trustee but be warned that there are sometimes additional costs incurred here.

Following your death, the executor will also be in charge of paying off any of your debts, calculating the value of your estate, and dividing up your estate based on your will. It’s kind to keep all of your finances and accounts up to date and organized, as this will help your executor when it comes to divvying up your finances and organizing your estate.

Seek Financial Advice

If you have savings or investments worth over £325,000 then you may want to seek the assistance of a financial advisor in order to avoid paying too much inheritance tax when you pass on.

Hiring a financial specialist will enable you to pursue the best course of action and help you to understand the different rules surrounding things like the gifts that you can leave, setting up trusts and any changes to the rules. The latter is particularly pertinent since politicians are often tinkering with inheritance tax rules.

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