It will be necessary for the person claiming this benefit to provide either a Grant of Probate or Letters of Administration.  These are legal documents which are obtained as part of managing a deceased person’s estate.  This is because one or other of these documents would determine to whom the lump sum should be paid. You can ask a solicitor to help you to obtain these documents.

it is a tax on your estate (your assets) that may be liable for inheritance tax when you die. Usually, if your house, money and other belongings are worth less than £325,000 you don’t pay. If you’re married or in a civil partnership, the threshold goes up to £650,000 on the second death; after that it’s usually a flat rate tax of 40%. It’s tempting to think this is a tax only for the wealthy, but with house prices as they are today you might want to think again. From 6th April 2017, there is an additional allowance being introduced.  It starts at £100,000 per person which is in addition to the £325,000. There are various criteria to qualify: they include owning a residence which will pass to direct descendants.

What is a declaration of trust?

A declaration of trust is a document that sets out who owns what percentage of a property, so when it's sold everybody knows what they’re entitled to. They’re useful documents if you're an unmarried couple, you've made unequal contributions to buying a house, or loaned somebody else the money to buy or improve a house. 

A trust is a legal device used as a way of planning for the future and providing protection. You can use a trust to pass your wealth on to your children or grandchildren, to pay for school fees or a care home, or as part of your tax planning. 

Incapacity law steps in when people can no longer make decisions for themselves. Mental illness, old age or accidents can make every day decisions harder. We might not understand or remember the choices or even be able to communicate a decision. The implications can be severe – for example, on personal finances. If you’re concerned about your own future, or somebody you know is aving trouble making decisions, you should get professional advice. 

There are several different kinds of trusts that serve different purposes for the settlor (the party/s who put assets into the trust).  Trust types include bare trusts, interest in possession trusts, mixed trusts, discretionary trusts, accumulation trusts, settlor-interested trusts and non-resident trusts. The most common types of trusts to be set up during a lifetime are the following.

• Discretionary Trusts – This kind of trust gives the trustees the power to act at their discretion in regard to decisions about how to use, distribute and manage the assets in a trust. This is usually to protect against potential issues with beneficiaries who are not responsible enough to manage the money, or no longer have a legitimate interest in the assets; this could be to do with marital disputes etc.
• Bare Trusts – These trusts are a simple way to ensure capital is protected for a younger person until they are at an appropriate age to receive it. The trustee will hold the assets of the trust until the beneficiary has turned 18 years old when they will receive the amount.
• Trusts for minors – Bare trusts, and discretionary trusts (among others) can be set up so that instead of the beneficiary standing to benefit as soon as they are of legal adulthood, the settlor caps the beneficiary’s age so that they may not receive the assets intended of them before they reach a certain age, for example, 25 years old. 
• Personal injury trusts – These trusts exist to hold and manage the funds received as compensation due to an injury/medical condition.

Anyone over the age of 18 can set up a trust to hold their assets. There is not a set amount needed to set up a trust. However, you may consider a trust when you have assets you wish to protect, control or pass on. 

Many people wrongly believe that a divorce automatically cancels or invalidates a Will. Similarly, individuals with an existing Will may neglect to review it after a divorce, unaware of the potential implications. Divorce can significantly affect the provisions of a Will, an often overlooked issue. It is essential to update a will whenever there is a major change in circumstances, such as a divorce. Our specialist team can help review your will.