@@JamesShack Works for me, but one comment, maybe make the email field longer, as someone with a longer email might think have they typed it wrong, as it goes of the screen. Thanks
James, this isnt too niche, this is exactly what we are here for. Keep up the good work, I'm sure this video alone has helped a huge number of families make difficult times slightly easier to come to terms with.
As a 71 yr old this video is a huge wake up call. I do not want to end up like Archie!! Many thanks James, will sign up for your newsletters, Alex in Norway.
My dad died in January and was a big fan of your channel. Fortunately he had followed many of the tips you've shared in this video. Thanks for the content - it's helped me understand the rationale behind the decisions he made.
Hi Michael, I'm sorry to hear that. I imagine it's not an easy time right now but I'm very glad to hear your father was well organised and thinking about his family. No problem at all for the content. Thanks to you and your father for supporting the channel over the years!
This hits home. My dad is in his mid 70s with I assume a reasonable estate. He has told me he doesn't have a will. This is going to be a nightmare unless I have an awkward conversation with him and help him at least with a will to appoint an executor (probably myself and brother), say how he wants his estate split and also to write down where all his assets sit.
Mum passed away in December last year - luckily she had already set up a will and lasting Power of Attorney but in October she was fit and healthy and was planning a trip to Japan in 2024. It was less than 4 weeks from hospital admission to passing away and I cannot imagine how to even start sorting her estate if this was not already in place. Go get it sorted and fast!.
The most useful finance video I've seen for some time. We'd been quoted over £2000 by the solicitors to set up finance and health powers of attorney for both of my very elderly parents. Just completed all four on the government website for £328! Thank you so much James, you knocked that one out of the park! Brilliant! X
2 other resources if your loved one or parent dies. 1. Tell Us Once (Govt service to notify all govt agencies of a death at the same time) 2. Death Notification Service (1 online service that allows you to notify every financial institution in UK of someone's death in 1 go. Each institution will then contact you if they find a record of that person in their records).
Have just gone through these after losing my father in February. Tell Us Once is very good. The DNS service I found a bit limited, especially for insurance and shareholdings. If your loved one's insurance isn't with one of the bigger institutions you will still have to follow up with individual companies separately.
I think this video has just knocked off the perch your previous one which I stated was your best. Honestly James, this is gold dust, eye opening advice for most of us who only understand the basics and live with the view that 'matters will sort themselves out'......thank you
I bought a book "I'm dead, now what?" In which you can list bank accounts, pensions, savings, list people to be contacted, solicitors, executors, even things like which energy suppliers you used etc etc. There's lots you don't think of. I'm sure there are similar publications. Worth getting one to list all these things out.
Thank you James. Great video. I’ve just done mine. I’m not married and have been with my partner for 32 years. I have a will giving her everything but never did a LPA. I have now.
Thank you so much for this video. My lovely mum died in November and I have learned much of what you have covered here from dealing with her estate. What was clear is that the education that would help people make wise decisions and cope better throughout a very painful period is sorely lacking. This video goes a very long way towards filling that gap and should be on the school curriculum! Thank you for your efforts - much appreciated.
So many people have these issues. I lost my wife when I was 45 and she 46 to breast cancer. Even though she was very unwell, she wanted to believe she wouldn't die and that her treatment would work and after she passed away even though we were married, I did NOT automatically get access to things that were in her name without going through probate. It was an absolute nightmare at a time I was very upset and vulnerable. So James' points in the video are so true, I can tell you that from bitter experience.
Thank you James for posting these videos, my wife and I have been sitting on money we have inherited for far too long. We were just too confused and worried about what to do with it. We also have no will or POA even though we have 2 children, we have talked about it plenty but then never do anything.👋👋😀
That's probably be in a Newsletter because that topic will only be of interest to a small segment of my audience. You can subscribe here: james-shack.co.uk/newsletter
@@JamesShack I've just discovered your channel and i'm finding it excellent. I've signed up for your news letter but is there anyway to get previous news letters?
Really important message, was meaning to make a video on this topic. Great video. 👏👏 It's such a grudge purchase for let's be honest, all of us, but such a nightmare for the family without it. Nice one. 👍
My dad passed away in December. He has a new wife as my mum passed away 9 years ago. I am still in my early 40s so not easy. As he had an old will only when my mum was alive of which he wanted 50 % equally between me and my brother. On his death bed a solicitor was there but he couldn't even speak anymore so he died intestate. His new wife who also has another house, is now in his estate (of which is not in her name) and has said she will stay there and has not said of yet she will pass on any of his assets to me or my brother it seems. Legally now I am entitled to nothing now. My point being I wish i had told him to update his will, plus now I will make sure I have an up to date will so my son gets everything from me! any advice too please will help.
James, this is your most useful video yet. I will be taking action based directly on this. Would you consider including a section on civil service pensions in a future video? Thanks
Or as I did with my mum, appoint one jointly. Myself and a solicitors firm were appointed as joint executors with the intention that I would do most of the donkey work and the solicitor would only step in as required to keep the costs down. When the time came, I found out that it doesn't work like that; you can only have one executor and I had to pay over £200 for the solicitor to resign from being executor. As it turned out, mum's affairs were fairly straightforward and I was sole beneficiary. Some years earlier I had done LPAs, thankfully. Doing them myself online was very easy. The hardest part was getting the financial one registered with every institution as some banks insisted on an in-person meeting. That needs fixing by government; any financial institution or utility company should be able to access a database of lpas.
Oh boy, this one is one the nose. Have previously been attorney, then executor, for my father, mother and stepfather. Then last year, my uncle had … you guessed it … a stroke, lost the ability to communicate and mental capacity. Now his deputy, became my aunt’s attorney until her death, now her executor, and going through ‘the fun’ of needing changes to the deputyship order, being responsible for his affairs and care (I _am_ considered next of kin) and now into renovation of the house pending a sale … presuming the Court of Protection will permit it. Could talk for hours on this stuff, but all really excellent advice James … as always ❤
This is an incredibly important video for everyone. Not just younger people with parents and grandparents but all. I wish my own parents had seen this video. They had both worked, saved , paid mortgage off, personal pensions set up, even a will. However, you can never know how your parents could end up, especially if they are ill informed, stubborn or just a bit stupid with finance. Only one of my parents is now left, is in a home and cannot make any decisions, with £500,000 in a bank current account !! Long story short , they never wanted to talk about it. !!
They will never teach this, unfortunately there is too much investment in keeping society below the threshold of feeling secure. With security comes challenge, only my opinion. But why I believe the surge in middle class wealth is being systematically broken down. To avoid an increase in generational wealth.
Father in law passed away suddenly at the beginning of the year. Two months after my in laws had sold up the family home and moved into a rental before they started building their new house. Turns out there's no will and outside of their joint account which thankfully the proceeds from the house sale went into, the other assets all have to be discovered and catalogue as it wasn't information they shared between themselves. Has meant rooting through countless boxes and added so much needless admin on top of an already awful situation. Would not recommend. It does though mean that my mother in law is looking for some financial advice so I've shared your contact details with her.
Hi Russell, thank you for the comment. A great example of why it helps to keep a list of your assets. The joint account point is a very good one too. Even if you're married you can get locked out of everything unless you have a joint account. Thank you for passing on my details!
My mum died in March 2020 there had been a family argument and my sisters disowned me, I still don’t know why this happened as they don’t talk to me at all. My mum had a Will but my sister was an executor, but on my mums death she decided that she didn’t wish to be an executor anymore and this was passed to my brother Inlaw of my other sister. It has taken so long to sort this out now, it’s been 2 years and some of the money from my mums estate has been given out, but we are still waiting for it to be finalised. It’s a nightmare as we can’t move on in our lives.
I do like the idea of planning for the celebration or funeral etc... important to put those wishes as well in the expression of wishes if important to you. We have both given our bodies to science (they have to be accepted when one dies, so people need to know who to call). Lots to think about and do, but worth ot
It is absolutely disgusting that the Executor becomes personally liable for the inheritance tax and any mistakes that might they make. The gall to disallow the executor to take monies out of the deceased estate to pay the tax bill and after all that that intestate laws might mean the executor has to give all that remains away to people that may not deserve it. Go figure...
16:56 super useful & interesting, thx! I’m new to your channel but have you done an episode on couple planning? My wife (52) is a civil servant with state pension, so not stocks-dependent, whereas I (53) am stocks- based …
Excellent video James. Thank you. My father passed at the end of last year but thanks to him taking all the steps you mentioned in the video, handling his estate has been mostly hassle free. I can't stress enough how important all of this is and as much as the subject can feel a bit taboo... discussing it with your loved ones now is one of the most kind and thoughtful things you can do for them.
A really good video (as always!). We have recently discovered that it's never too early to start planning. My wife and I (both mid-30s) recently prepared wills. We have two young children and felt we should have them in place. Save for the equity in our home, we didn't consider ourselves as having much in terms of assets / an estate, but as a result of us both having life insurance policies, as well as life cover through work, we ended up establishing trusts as well as preparing our wills to ensure any proceeds from the life cover are dealt with in a tax efficient manner.
We are currently experiencing mistake one with our uncle. He now has dementia and we have to apply for a court-appointed deputyship, which can't really be applied for until the person is too far gone, take a long time to get, and is preventable by giving power of attorney to a trusted loved one.
Brilliant video James, I know so many people who don't even have a will. I was interested to hear about the LPA. Can you do another video going into a bit more depth on the LPA. Keep up the good work, have learnt so much watching your videos. Mangal
Hi Whisky, that topic is a bit too niche for UA-cam but you can sign up to my Newsletter here where I'll be covering more technical content like that. 👍🏻
Dangerous ground because this can be considered as deprivation of assets by HMRC. Generally it's not a great idea unless you are VERY wealthy, not just wealthy, such as Frank.
This video has never been more relevant than it is for me now. My mum passed away in July last year without a valid will and we’re still going through the headache of being granted letters of administration, validating assets to evidence no IHT is payable and then will potentially have to deal with the further headache of CGT when everything is settled. The most challenging part has been contacting all the financial companies involved to request the information we need, because some of them will not discuss with us directly as the letters of administration are not in place yet. I’ll most certainly be taking your advice on board and making sure my family don’t have to go through what I have so far.
James, your videos are great. Since watching this video, my wife and I have set up mirror trust wills and also about to do both LPA’s. An important subject that is too often overlooked, I’ll be telling friends and family. Keep up the good work 👍
My advice to anyone is always have a joint power of attorney because when my mum was extremely ill before she passed away my step father managed to make changes to her financial situation which made sure he was the sole beneficiary of the will when she died.
James, this is such a great video. If you didn’t create this video, I am sure my husband would be missing a lot in the future because he missed a period of time. Thank you for the great explanation! Please keep up the good work! 🙏🏻👍
Hi James thanks, a very interesting video, we are both now retired and just sorted poa and wills. I did not think about being able to reduce iht so will now look into that.
Mines due tomorrow ,,,,regrets yes ,,,wish I never dwelt so much on money through my life ,,again going spongy just focusing on happy days now ,,,it’s a bit worrying when I’ll be 60 in 5 yrs time though
This comment isn't about finance, but I think it's helpful in the context. My mother has just died. Since my family were never champions of communication, and I'm being polite here, I took the perhaps unusual step of asking her a couple of years back to write out her own life rather than me making guesses about dates and activities. And this is what I shall be reading at her funeral. I can't tell you how pleased I am now about that decision. (You just need to be a little tactful when you ask your loved one!) Ultimately too, it's much more interesting to talk about someone's life in their own words.
Great video. I do not live in the UK but even living in another country it is wise to know the laws and how it will affect you if your spouse or parents die. I saw this happen with my grandparents and parents. My mother was left having to deal with it all. With my grandparents, she had to fight with her sister's husband who was a very greedy man but she won the battle in the end. My grandmother was protected due to my mother. She had to deal with my father getting Alzheimer's but she got the power of attorney papers she needed to protect herself and my father from social services stepping in. When she got sick she sat down with me and told me how everything was set up and what to do when she died. Simple steps 1,2,3 etc. I followed what she had written down, the final step to see the lawyer. He did not charge me anything as he said I did it all on my own. It took me one week to do it all. He read what she wrote and laughed. Said if all his clients did this life would be very simple when it came to settling an estate.
Another big saving is that if your spouse dies before you, you inherit their IHT allowance and Residence allowance. So make a note of this and a copy of a house valuation from the time of the spouse's death and put it with your will, so that your executors can easily claim the allowances, which now could total £1m.
And a copy of your spouse's will. We couldn't find my father's will and neither could the Probate office. It held up the sale of the family home. Wills are kept online now but my father passed just before they started putting them online. It was registered we found that information but the hard copy was never located.
Great video James. My parents are worried about deprivation of assets, so don’t give away more than a nominal sum. They both had parents and siblings that spent time in a care home, but they have more than enough to see them through an extended stay. How do people give away enough without being accused of deprivation of assets?
To avoid deprivation of assets, your parents would have to transfer assets off their name and onto child’s name at least several years before they get diagnosed with any health conditions, which could indicate eventual decline into a care home. It has to be way before any diagnosis, when they’re relatively healthy, to avoid the ‘deliberate’ accusation by the council. If they’re not comfortable transferring to children this way, due to the risk it poses to their own financial security, they can put their properties into ‘tenants in common’, rather than joint ownership. So if one of them dies or goes into a care home, at least half the house(s), might be saved for children, as the deceased parent’s half of the house(s) would go to whoever is in their will, e.g. children, or the care home parent’s half of the house(s), only, could be claimed by the council. The problem arises if both need care homes then you’re screwed.@ A C
My understanding is that this need only be a concern if they plan on relying on the state for care. A solicitor would know best, but my understanding is that they could gift away their assets to you, and you then pay the care fees (you must have no obligation to do this otherwise it would be a gift with reservation). If as you say they have more than enough for an extended stay then social care funding would not be required and deprivation not a concern.
This is exactly why I say to my dad he needs a power of attorney to save any unnecessary issues, he always replies by saying to me that I'm only after his money which at the most is about £17k I don't care if it was 17k or 1.7 million, I just really don't want the hassle that can be easily avoided by having a power of attorney in place, he is such a selfish person which is one of the many reasons why his whole family disowned him many years ago, I'm the only one that bothers with him and he throws that back in my face almost as if he is punishing me for his past life I've given up on him also now because of his selfish, disrespectful attitude and manor He's way to difficult for me to be wasting my time and efforts over Great video, many thanks for your valuable information 👍
James, thank you for this video really one of the most useful and pragmatic ones I have seen. It really cuts through all the noise and focuses in on the basics and most important things to just sort out. Certainly a kick up the behind for me and I have now just done 2 wills and 4 LPAs for me and the wife. We were too late to get an LPA for my father who has dementia and the problems that has caused is an ongoing struggle and we now need to go via the courts to allow us to manage his wellbeing and assets. Never to early to just get these things ticked off and in place is now my opinion.
You mentioned about a power of attorney could be set up in 15 minutes on line. My wife and sister in law have set ghis ball in motion its taken 6 weeks for a letter from the government to acknowledge and another 4 weeks for the process to possibly be challenged by my wifes mother thats 10 weeks and its still not completed.
This is a fascinating vid.Thank you and thanks to Archie for letting you share. But, I'm confused as to how the estate can be properly valued prior to the sale assets? Share/bond price, ok, but house sales? So how is the tax actually determined BEFORE a house (for example) is sold?!
You get it valued. The death process in the UK is to support a parasitic industry of valuers and solicitors, etc. At what age do we get a letter from the government telling us to set up an LPA? Never happens. If estate likely to pay no iht then get 3 informal valuations from estate agents and take average. If iht to be paid then pay for formal valuation - you’ll need to show them the deeds.
7:22 writing down password is not a good idea generally, if the file is stolen, then you could lose access to everything. I don't know the best way to get around that, perhaps store it in an encrypted pasword app, but writing it down is not recommended.
One aspect that isnt mentioned in this video around IHT, is IHT on property can be delayed and paid in instalments over 10 years. You will get charged interest, but it can give valuable breathing space for paying an IHT bill without having to sell investments, property or indeed take out additional loans to pay it. It massively helped me recently when I had to pay IHT on behalf of one of my parents. You also have the freedom to pay the property IHT down quicker if you wish (e.g. agree instalments with HMRC, but then pay 9/10 instalments in 1 go a year later once you have had the breathing space to allocate the money).
I work with families where one of them has had to go into residential care and no longer has capacity over finances. This causes problems if they do not already have Power of Attorney in place and the family often have to then apply for Deputyship which is a much more expensive and lengthy process (it can take over a year in some cases). Also if you hold a joint bank account with someone who loses capacity then technically the bank can freeze the account save for any essential expenditure until Deputyship is obtained. It is a common misconception that someone can manage their spouses financial affairs because they are married - as James says this is not legally the case.
Got a quote for power-of-attorney financial and health for me and the Mrs it was about 2400 quid, but apparently there are other ways you can do it that are free, this video reminds me I need to follow that up and look for better quotes
You can sign up to my Newsletter here 👉james-shack.co.uk/newsletter
Screen goes black?
@@2000andybaker Hmm. It works for me. Are you on mobile or desktop? What browser are you using?
@@JamesShack Works for me, but one comment, maybe make the email field longer, as someone with a longer email might think have they typed it wrong, as it goes of the screen. Thanks
@@jamesc328 I appreciate the feedback! I’ll update that now.
It works for me x
James, this isnt too niche, this is exactly what we are here for. Keep up the good work, I'm sure this video alone has helped a huge number of families make difficult times slightly easier to come to terms with.
I hope so !
As a 71 yr old this video is a huge wake up call. I do not want to end up like Archie!! Many thanks James, will sign up for your newsletters, Alex in Norway.
My dad died in January and was a big fan of your channel. Fortunately he had followed many of the tips you've shared in this video. Thanks for the content - it's helped me understand the rationale behind the decisions he made.
Hi Michael, I'm sorry to hear that. I imagine it's not an easy time right now but I'm very glad to hear your father was well organised and thinking about his family.
No problem at all for the content. Thanks to you and your father for supporting the channel over the years!
This hits home. My dad is in his mid 70s with I assume a reasonable estate. He has told me he doesn't have a will. This is going to be a nightmare unless I have an awkward conversation with him and help him at least with a will to appoint an executor (probably myself and brother), say how he wants his estate split and also to write down where all his assets sit.
Mum passed away in December last year - luckily she had already set up a will and lasting Power of Attorney but in October she was fit and healthy and was planning a trip to Japan in 2024. It was less than 4 weeks from hospital admission to passing away and I cannot imagine how to even start sorting her estate if this was not already in place. Go get it sorted and fast!.
Thank you for sharing this Si.
The most useful finance video I've seen for some time. We'd been quoted over £2000 by the solicitors to set up finance and health powers of attorney for both of my very elderly parents. Just completed all four on the government website for £328! Thank you so much James, you knocked that one out of the park! Brilliant! X
That's great to hear Greg. Yes, there's not much a solicitor can do with an LPA, it's makes for rather expensive hand holding!
2 other resources if your loved one or parent dies. 1. Tell Us Once (Govt service to notify all govt agencies of a death at the same time) 2. Death Notification Service (1 online service that allows you to notify every financial institution in UK of someone's death in 1 go. Each institution will then contact you if they find a record of that person in their records).
Have just gone through these after losing my father in February. Tell Us Once is very good. The DNS service I found a bit limited, especially for insurance and shareholdings. If your loved one's insurance isn't with one of the bigger institutions you will still have to follow up with individual companies separately.
I think this video has just knocked off the perch your previous one which I stated was your best. Honestly James, this is gold dust, eye opening advice for most of us who only understand the basics and live with the view that 'matters will sort themselves out'......thank you
Haha thank you Mark. I'm glad you're finding them useful!
I bought a book "I'm dead, now what?" In which you can list bank accounts, pensions, savings, list people to be contacted, solicitors, executors, even things like which energy suppliers you used etc etc. There's lots you don't think of. I'm sure there are similar publications. Worth getting one
to list all these things out.
That’s a great idea!
Thank you
What a video! This was an absolute masterclass-thank you so much for putting this together James!
You're very welcome!
Thank you James. Great video.
I’ve just done mine. I’m not married and have been with my partner for 32 years. I have a will giving her everything but never did a LPA. I have now.
Thank you so much for this video. My lovely mum died in November and I have learned much of what you have covered here from dealing with her estate. What was clear is that the education that would help people make wise decisions and cope better throughout a very painful period is sorely lacking. This video goes a very long way towards filling that gap and should be on the school curriculum! Thank you for your efforts - much appreciated.
So many people have these issues. I lost my wife when I was 45 and she 46 to breast cancer. Even though she was very unwell, she wanted to believe she wouldn't die and that her treatment would work and after she passed away even though we were married, I did NOT automatically get access to things that were in her name without going through probate. It was an absolute nightmare at a time I was very upset and vulnerable. So James' points in the video are so true, I can tell you that from bitter experience.
James, this is a great video. I am now in the process of sorting our wills and LTA! Thanks again, Simon
Excellent video James. I’m a recently retired IFA and applaud the quality of your videos.
James, this is a great video. I am now in the process of setting up our wills and LTA! Thanks, Simon
One of the best videos ever on UA-cam.
Thank you James for posting these videos, my wife and I have been sitting on money we have inherited for far too long. We were just too confused and worried about what to do with it. We also have no will or POA even though we have 2 children, we have talked about it plenty but then never do anything.👋👋😀
Great video, I would love to see a video on Trusts & Family Investment Companies from you if possible
That's probably be in a Newsletter because that topic will only be of interest to a small segment of my audience. You can subscribe here: james-shack.co.uk/newsletter
@@JamesShackhi James have you had chance to cover trusts and family investment companies yet?
@@JamesShack I've just discovered your channel and i'm finding it excellent. I've signed up for your news letter but is there anyway to get previous news letters?
@MrSoviet123 No, but to be honest there’s not been that many so far!
Really important message, was meaning to make a video on this topic. Great video. 👏👏
It's such a grudge purchase for let's be honest, all of us, but such a nightmare for the family without it. Nice one. 👍
My dad passed away in December. He has a new wife as my mum passed away 9 years ago. I am still in my early 40s so not easy. As he had an old will only when my mum was alive of which he wanted 50 % equally between me and my brother. On his death bed a solicitor was there but he couldn't even speak anymore so he died intestate. His new wife who also has another house, is now in his estate (of which is not in her name) and has said she will stay there and has not said of yet she will pass on any of his assets to me or my brother it seems. Legally now I am entitled to nothing now. My point being I wish i had told him to update his will, plus now I will make sure I have an up to date will so my son gets everything from me! any advice too please will help.
James, this is your most useful video yet. I will be taking action based directly on this.
Would you consider including a section on civil service pensions in a future video? Thanks
This is excellent , I’m definitely going to do all the things you have suggested, keep up the great work and thank you for helping us all
DO NOT under any circumstances appoint a solicitor as executor 😱
Or, even worse, your bank
Or as I did with my mum, appoint one jointly. Myself and a solicitors firm were appointed as joint executors with the intention that I would do most of the donkey work and the solicitor would only step in as required to keep the costs down. When the time came, I found out that it doesn't work like that; you can only have one executor and I had to pay over £200 for the solicitor to resign from being executor.
As it turned out, mum's affairs were fairly straightforward and I was sole beneficiary.
Some years earlier I had done LPAs, thankfully. Doing them myself online was very easy. The hardest part was getting the financial one registered with every institution as some banks insisted on an in-person meeting. That needs fixing by government; any financial institution or utility company should be able to access a database of lpas.
Myself and my now late brother were appointed as Executers to my father’s estate… without our knowledge…our step mother failed to tell us either…
Why?
@@gelosul If you're a solicitor you'll know why... 😊
If you're not - ask a trusted friend or family member 👍
Oh boy, this one is one the nose. Have previously been attorney, then executor, for my father, mother and stepfather. Then last year, my uncle had … you guessed it … a stroke, lost the ability to communicate and mental capacity. Now his deputy, became my aunt’s attorney until her death, now her executor, and going through ‘the fun’ of needing changes to the deputyship order, being responsible for his affairs and care (I _am_ considered next of kin) and now into renovation of the house pending a sale … presuming the Court of Protection will permit it. Could talk for hours on this stuff, but all really excellent advice James … as always ❤
An exceptionally useful video. I hope lots of people see this and action the mitigation steps (esp. LPA + Wills)
I hope they do. There's no downside to having these in place!
very smart advice and so appropriate, I wish I had seen something likethis years ago. keep up the good work.
Awesome video! Thank you for all you do for us out here in the confusing world of retirement.
This is a brilliant video, a will is something I have been putting off doing, and I'm going to sort it this week now!
You do that!
This is so helpful and the story behind the scenarios make it even more interesting. Thank you!
I'm glad you found it useful Mattew!
Great Video with specific actionable ideas which has been really helpful.
Thanks James. This will help a lot of people.
Thanks for watching Jonathan. I'm glad you found it useful.
This is an incredibly important video for everyone. Not just younger people with parents and grandparents but all. I wish my own parents had seen this video. They had both worked, saved , paid mortgage off, personal pensions set up, even a will. However, you can never know how your parents could end up, especially if they are ill informed, stubborn or just a bit stupid with finance. Only one of my parents is now left, is in a home and cannot make any decisions, with £500,000 in a bank current account !!
Long story short , they never wanted to talk about it. !!
as always - thank you James for how clearly you present complex and emotionally charged issues. love the newsletter idea - i'm in!
Cheers Aly! Speak soon.
Really useful video. Sadly, some who need their PoA's also forget they created it leading to complications, thence denial.
The best guy on UA-cam.....Your so helpfull... Just thank you
Great video James, should be mandatory viewing for everyone, start at school and then every decade get a reminder by hmrc.
They will never teach this, unfortunately there is too much investment in keeping society below the threshold of feeling secure. With security comes challenge, only my opinion. But why I believe the surge in middle class wealth is being systematically broken down. To avoid an increase in generational wealth.
Nice one James ! Presented super clearly as usual
We're just sorting wills and LPAs with my parents. We didn't realise that pensions fall outside the scope of IHT, very important piece of advice!
Pensions are written in trust, so do not fall within the estate.
Some great provider links James, a low cost for cleaning up these important, but often forgotten about, things .. thanks for the informative video.
I'm glad you found it useful!
Always make contemporary notes when you take any actions. Easy to check where you are up to.
Can you please expand on this? Do you mean specifically in relation to gifts?
I wish there was an Australian version of you. This is gold.
Haha there should be!
great work James .......so so useful and full of wisdoms
Excellent as usual James. Thank you.
Enjoyable video and most informative.
Great video. I subscribed to your newsletter. I am quite interested in learning more about Trusts.
This is really useful. Need to have those difficult conversations with my grown up children.
Yes it does help,
This is fantastic information. Super useful!
This is eye opening! Super…..Thanks James
Holy moly! IHT avoidance genius! 🤯
Brilliant! Thank you
Brilliant, thanks.
Father in law passed away suddenly at the beginning of the year. Two months after my in laws had sold up the family home and moved into a rental before they started building their new house. Turns out there's no will and outside of their joint account which thankfully the proceeds from the house sale went into, the other assets all have to be discovered and catalogue as it wasn't information they shared between themselves. Has meant rooting through countless boxes and added so much needless admin on top of an already awful situation. Would not recommend. It does though mean that my mother in law is looking for some financial advice so I've shared your contact details with her.
Hi Russell, thank you for the comment. A great example of why it helps to keep a list of your assets.
The joint account point is a very good one too. Even if you're married you can get locked out of everything unless you have a joint account.
Thank you for passing on my details!
Really needed to know this - thankyou so much
You’re welcome!
My mum died in March 2020 there had been a family argument and my sisters disowned me, I still don’t know why this happened as they don’t talk to me at all. My mum had a Will but my sister was an executor, but on my mums death she decided that she didn’t wish to be an executor anymore and this was passed to my brother Inlaw of my other sister. It has taken so long to sort this out now, it’s been 2 years and some of the money from my mums estate has been given out, but we are still waiting for it to be finalised. It’s a nightmare as we can’t move on in our lives.
I do like the idea of planning for the celebration or funeral etc... important to put those wishes as well in the expression of wishes if important to you. We have both given our bodies to science (they have to be accepted when one dies, so people need to know who to call). Lots to think about and do, but worth ot
thank you so fascinating and informative
Excellent video. Thank you.
Glad you enjoyed it!
It is absolutely disgusting that the Executor becomes personally liable for the inheritance tax and any mistakes that might they make. The gall to disallow the executor to take monies out of the deceased estate to pay the tax bill and after all that that intestate laws might mean the executor has to give all that remains away to people that may not deserve it. Go figure...
This is such a valuable channel, James. Thank you.
No problem!
I had been thinking of this issue for a while and will now get it sorted. Really great video as always, thanks James.
You're very welcome!
16:56 super useful & interesting, thx! I’m new to your channel but have you done an episode on couple planning? My wife (52) is a civil servant with state pension, so not stocks-dependent, whereas I (53) am stocks- based …
Great guidance James.
I'm glad you found it useful!
Probably the most important video I've ever watched on UA-cam.
Also, your kitchen/diner should be in Good Housekeeping. 😊
Nice try! Oh wait, no it wasn't.
Thanks Francis, I'm glad you found it useful!
Excellent video James. Thank you. My father passed at the end of last year but thanks to him taking all the steps you mentioned in the video, handling his estate has been mostly hassle free. I can't stress enough how important all of this is and as much as the subject can feel a bit taboo... discussing it with your loved ones now is one of the most kind and thoughtful things you can do for them.
This is a really helpful video and spot on for what we're trying to sort out at the moment. Thank you
Glad it was helpful!
Just been thru all of this. Painful. Took months the get access to my dads account. I was £2.5k out of pocket paying bills etc.
A really good video (as always!). We have recently discovered that it's never too early to start planning. My wife and I (both mid-30s) recently prepared wills. We have two young children and felt we should have them in place. Save for the equity in our home, we didn't consider ourselves as having much in terms of assets / an estate, but as a result of us both having life insurance policies, as well as life cover through work, we ended up establishing trusts as well as preparing our wills to ensure any proceeds from the life cover are dealt with in a tax efficient manner.
Yes making sure that your life insurance is written into trust is an important one!
@@JamesShack isn’t life insurance kinda automatically set up to pay beneficiaries when nominated. In a trust format. So outside of IHT
@@SeniorNI Not automatically. THat's an error lots of people make.
Another great video. Thanks.
Glad you enjoyed it
Brilliant video, very useful
Glad it was helpful!
We are currently experiencing mistake one with our uncle. He now has dementia and we have to apply for a court-appointed deputyship, which can't really be applied for until the person is too far gone, take a long time to get, and is preventable by giving power of attorney to a trusted loved one.
Thank you for sharing this. I hope others take action to avoid this in the future.
Great video James - very useful. Many thanks.
I'm glad you found it useful!
Brilliant video James, I know so many people who don't even have a will. I was interested to hear about the LPA. Can you do another video going into a bit more depth on the LPA. Keep up the good work, have learnt so much watching your videos.
Mangal
Hi James, would you do one about Trusts and the benefits of putting assets in a trust?
Hi Whisky, that topic is a bit too niche for UA-cam but you can sign up to my Newsletter here where I'll be covering more technical content like that. 👍🏻
Dangerous ground because this can be considered as deprivation of assets by HMRC. Generally it's not a great idea unless you are VERY wealthy, not just wealthy, such as Frank.
This video has never been more relevant than it is for me now. My mum passed away in July last year without a valid will and we’re still going through the headache of being granted letters of administration, validating assets to evidence no IHT is payable and then will potentially have to deal with the further headache of CGT when everything is settled. The most challenging part has been contacting all the financial companies involved to request the information we need, because some of them will not discuss with us directly as the letters of administration are not in place yet. I’ll most certainly be taking your advice on board and making sure my family don’t have to go through what I have so far.
I'm sorry to hear about your difficulties and the loss of your month but than you for sharing this so that others can learn from it too.
James, your videos are great. Since watching this video, my wife and I have set up mirror trust wills and also about to do both LPA’s. An important subject that is too often overlooked, I’ll be telling friends and family. Keep up the good work 👍
My advice to anyone is always have a joint power of attorney because when my mum was extremely ill before she passed away my step father managed to make changes to her financial situation which made sure he was the sole beneficiary of the will when she died.
Good advice.
James, this is such a great video. If you didn’t create this video, I am sure my husband would be missing a lot in the future because he missed a period of time. Thank you for the great explanation! Please keep up the good work! 🙏🏻👍
This is absolute quality 🎉😊
Glad you enjoyed it!
Hi James thanks, a very interesting video, we are both now retired and just sorted poa and wills. I did not think about being able to reduce iht so will now look into that.
So true James my mom and dad passed away 10 years ago and had everything in order including the burial plots.
Thanks mom and dad!🙏🏽
Kindness from beyond the grave.
Mines due tomorrow ,,,,regrets yes ,,,wish I never dwelt so much on money through my life ,,again going spongy just focusing on happy days now ,,,it’s a bit worrying when I’ll be 60 in 5 yrs time though
However amazing fact vo2 max of 47 ,,fitness age of an average 20 yr old I celebrate that tomorrow,,,and a little nod to pension
Hi thanks for all these things. Do you know anything about trusts? Would that be better than a Will etc?
I'm single and I don't have kids, so in terms of myself when I die, I'm not sure who is even going to be around
Really useful at this time, we are just in the process of setting up a FIC as a vehicle for Property investment.
This comment isn't about finance, but I think it's helpful in the context. My mother has just died. Since my family were never champions of communication, and I'm being polite here, I took the perhaps unusual step of asking her a couple of years back to write out her own life rather than me making guesses about dates and activities. And this is what I shall be reading at her funeral. I can't tell you how pleased I am now about that decision. (You just need to be a little tactful when you ask your loved one!) Ultimately too, it's much more interesting to talk about someone's life in their own words.
Very good advice - I will do that myself!
Do you mind if I share your comment with the rest of the community?
Great video. I do not live in the UK but even living in another country it is wise to know the laws and how it will affect you if your spouse or parents die. I saw this happen with my grandparents and parents. My mother was left having to deal with it all. With my grandparents, she had to fight with her sister's husband who was a very greedy man but she won the battle in the end. My grandmother was protected due to my mother. She had to deal with my father getting Alzheimer's but she got the power of attorney papers she needed to protect herself and my father from social services stepping in. When she got sick she sat down with me and told me how everything was set up and what to do when she died. Simple steps 1,2,3 etc. I followed what she had written down, the final step to see the lawyer. He did not charge me anything as he said I did it all on my own. It took me one week to do it all. He read what she wrote and laughed. Said if all his clients did this life would be very simple when it came to settling an estate.
That's a great lesson for other to learn, thank you for sharing!
Another big saving is that if your spouse dies before you, you inherit their IHT allowance and Residence allowance. So make a note of this and a copy of a house valuation from the time of the spouse's death and put it with your will, so that your executors can easily claim the allowances, which now could total £1m.
Yes very important advice.
And a copy of your spouse's will. We couldn't find my father's will and neither could the Probate office. It held up the sale of the family home. Wills are kept online now but my father passed just before they started putting them online. It was registered we found that information but the hard copy was never located.
Great video James. My parents are worried about deprivation of assets, so don’t give away more than a nominal sum. They both had parents and siblings that spent time in a care home, but they have more than enough to see them through an extended stay. How do people give away enough without being accused of deprivation of assets?
To avoid deprivation of assets, your parents would have to transfer assets off their name and onto child’s name at least several years before they get diagnosed with any health conditions, which could indicate eventual decline into a care home. It has to be way before any diagnosis, when they’re relatively healthy, to avoid the ‘deliberate’ accusation by the council.
If they’re not comfortable transferring to children this way, due to the risk it poses to their own financial security, they can put their properties into ‘tenants in common’, rather than joint ownership. So if one of them dies or goes into a care home, at least half the house(s), might be saved for children, as the deceased parent’s half of the house(s) would go to whoever is in their will, e.g. children, or the care home parent’s half of the house(s), only, could be claimed by the council. The problem arises if both need care homes then you’re screwed.@ A C
My understanding is that this need only be a concern if they plan on relying on the state for care. A solicitor would know best, but my understanding is that they could gift away their assets to you, and you then pay the care fees (you must have no obligation to do this otherwise it would be a gift with reservation). If as you say they have more than enough for an extended stay then social care funding would not be required and deprivation not a concern.
In Australia there are no death taxes. If you inherit money from an estate, it is classed as a windfall. No tax applies.
This is exactly why I say to my dad he needs a power of attorney to save any unnecessary issues, he always replies by saying to me that I'm only after his money which at the most is about £17k
I don't care if it was 17k or 1.7 million, I just really don't want the hassle that can be easily avoided by having a power of attorney in place, he is such a selfish person which is one of the many reasons why his whole family disowned him many years ago, I'm the only one that bothers with him and he throws that back in my face almost as if he is punishing me for his past life
I've given up on him also now because of his selfish, disrespectful attitude and manor
He's way to difficult for me to be wasting my time and efforts over
Great video, many thanks for your valuable information 👍
Sorry to hear that, it must be tough. No problem for the video.
James, thank you for this video really one of the most useful and pragmatic ones I have seen. It really cuts through all the noise and focuses in on the basics and most important things to just sort out. Certainly a kick up the behind for me and I have now just done 2 wills and 4 LPAs for me and the wife. We were too late to get an LPA for my father who has dementia and the problems that has caused is an ongoing struggle and we now need to go via the courts to allow us to manage his wellbeing and assets. Never to early to just get these things ticked off and in place is now my opinion.
I'm glad it was the motivation you need! And thank you for sharing your experiences.
You mentioned about a power of attorney could be set up in 15 minutes on line. My wife and sister in law have set ghis ball in motion its taken 6 weeks for a letter from the government to acknowledge and another 4 weeks for the process to possibly be challenged by my wifes mother thats 10 weeks and its still not completed.
This is a fascinating vid.Thank you and thanks to Archie for letting you share. But, I'm confused as to how the estate can be properly valued prior to the sale assets? Share/bond price, ok, but house sales? So how is the tax actually determined BEFORE a house (for example) is sold?!
You get it valued. The death process in the UK is to support a parasitic industry of valuers and solicitors, etc. At what age do we get a letter from the government telling us to set up an LPA? Never happens. If estate likely to pay no iht then get 3 informal valuations from estate agents and take average. If iht to be paid then pay for formal valuation - you’ll need to show them the deeds.
I like how you present this subject wearing a surgeon's green gown- type of top. The kitchen marble top in the background, like a morgue. 😂
7:22 writing down password is not a good idea generally, if the file is stolen, then you could lose access to everything. I don't know the best way to get around that, perhaps store it in an encrypted pasword app, but writing it down is not recommended.
One aspect that isnt mentioned in this video around IHT, is IHT on property can be delayed and paid in instalments over 10 years. You will get charged interest, but it can give valuable breathing space for paying an IHT bill without having to sell investments, property or indeed take out additional loans to pay it. It massively helped me recently when I had to pay IHT on behalf of one of my parents. You also have the freedom to pay the property IHT down quicker if you wish (e.g. agree instalments with HMRC, but then pay 9/10 instalments in 1 go a year later once you have had the breathing space to allocate the money).
I work with families where one of them has had to go into residential care and no longer has capacity over finances. This causes problems if they do not already have Power of Attorney in place and the family often have to then apply for Deputyship which is a much more expensive and lengthy process (it can take over a year in some cases). Also if you hold a joint bank account with someone who loses capacity then technically the bank can freeze the account save for any essential expenditure until Deputyship is obtained. It is a common misconception that someone can manage their spouses financial affairs because they are married - as James says this is not legally the case.
Interesting about the joint bank account. I thought that a joint account was a way around it so that the surviving spouse can still access assets?
Yes watch out for the joint bank account I have heard of spouse being frozen out x
I didn't pensions were free from IHT - nice to know
Got a quote for power-of-attorney financial and health for me and the Mrs it was about 2400 quid, but apparently there are other ways you can do it that are free, this video reminds me I need to follow that up and look for better quotes
Check the description of the video. You can do it for £82pp.