The Video EVERYONE Needs to Watch Before They DIE
Вставка
- Опубліковано 14 чер 2024
- It's hard enough as it is when someone close to you dies, let alone when they leave a financial mess in their wake. Make sure this doesn't happen to your family.
Subscribe to my Newsletter here 👉 james-shack.co.uk/newsletter
📝 Online Wills
Octopus Legacy - bit.ly/3K2ZGhK - £90 per will
📝 Online Lasting Power of Attorney
Government Service - bit.ly/3HTc4yc - £82 - A little clunky but does the job
Octopus Legacy - bit.ly/3Ilr7lH - £120 + £82 registration fee- Guides you through the process and explains the pros and cons of each decision
Financial Planning
I am a Chartered Wealth Manager and Partner in a financial planning practice based in the UK. If you would like to find out more about our services, please follow this link: go.novawm.com/getintouch
DISCLAIMER:
This channel is for education purposes only and does not constitute financial advice. Any opinions or assessments expressed are James’ own opinions or assessments, which are not affiliated with any third party. Any representations stated as facts or views based on such facts are relevant to circumstances applicable at the time of publication. This information should never be relied solely upon to make decisions, and James accepts no liability for any investment actions undertaken by viewers. Please seek regulated financial advice or an advisor if you require assistance. The value of an investment and the income from it can go down as well as up and investors may not get back the amount invested.
James Shack™ property of James Shackell
Copyright © James Shackell 2023. All rights reserved.
The author asserts their moral right under the Copyright, Designs and Patents Act 1988 to be identified as the author of this channel and any video published on it.
00:00 You Need to Watch This
2:14 The Context
3:25 First Mistake
5:24 Second Mistake
8:25 The Estate
11:38 Distributing The Estate
12:39 (Avoiding) Taxes
8:25 The Estate
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 !
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.
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.
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.
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.
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
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!
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!
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.
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!
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.
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 👍
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.
Nice one James ! Presented super clearly as usual
Excellent as usual James. Thank you.
This is eye opening! Super…..Thanks James
What a video! This was an absolute masterclass-thank you so much for putting this together James!
You're very welcome!
Another great video on such an important topic.Thanks! And thank you for not saying "myriad of" like so many others do...
Great video. I subscribed to your newsletter. I am quite interested in learning more about Trusts.
Thanks for this essential content James
Awesome video! Thank you for all you do for us out here in the confusing world of retirement.
Great Video with specific actionable ideas which has been really helpful.
This is fantastic information. Super useful!
Brilliant! Thank you
great work James .......so so useful and full of wisdoms
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. 👍
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.
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!
This is such a valuable channel, James. Thank you.
No problem!
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
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!
very smart advice and so appropriate, I wish I had seen something likethis years ago. keep up the good work.
Thanks James. This will help a lot of people.
Thanks for watching Jonathan. I'm glad you found it useful.
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!
Great video James - very useful. Many thanks.
I'm glad you found it useful!
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!
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!
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
Really needed to know this - thankyou so much
You’re welcome!
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!
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.
Another really great video, always learn loads!!
Glad you found it useful!
Brilliant, thanks.
One of the best videos ever on UA-cam.
Great guidance James.
I'm glad you found it useful!
Excellent video. Thank you.
Glad you enjoyed it!
Excellent video James. I’m a recently retired IFA and applaud the quality of your videos.
thank you so fascinating and informative
This is really useful. Need to have those difficult conversations with my grown up children.
Yes it does help,
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.
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. !!
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.
Brilliant video, very useful
Glad it was helpful!
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?
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 ❤
Another great video. Thanks.
Glad you enjoyed it
Very informative video, thanks for sharing
You're welcome Brendan.
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.👋👋😀
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
Holy moly! IHT avoidance genius! 🤯
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.
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 👍
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?
Really useful video. Sadly, some who need their PoA's also forget they created it leading to complications, thence denial.
Speak for yourself, I ain't dying. Not now, not ever.
Amen to that.
I wish there was an Australian version of you. This is gold.
Haha there should be!
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?
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.
This is absolute quality 🎉😊
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...
What a horror show that story was. Really feel for "Archie" having to cope with that. Mad that the estate can't be used to pay the IHT. Lesson learned -- I'm off to get a POA and will sorted
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.
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! 🙏🏻👍
Enjoyable video and most informative.
Really useful at this time, we are just in the process of setting up a FIC as a vehicle for Property investment.
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!
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!
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.
Hi thanks for all these things. Do you know anything about trusts? Would that be better than a Will etc?
I will definitely be sorting this out. Was postponing it. On another topic could you do a video about investing for kids' future. Best options etc. I am thinking of either opening S&S ISA or Junior SIPP. What is better? Pros and cons?
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.
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.
Hi James, huge fan of the channel and the quality content you provide! I was wondering what your pathway to becoming a financial advisor and what were the necessary qualifications etc as this is a huge area of interest for me. Thanks!
I'll share a video on this in the next month or so.
Very informative video! Thank you! I’ve just subscribed to your newsletter too.
But what’s the logic behind the law that assets shouldn’t be sold to cover the IHT bill?!
Also, could you talk about trusts in a bit more detail? I know your competition (Chris Bourne) touched upon this in one of his videos but I keep wondering why we shouldn’t all ‘live out of a trust’ - would this save any non-IHT?
Nice work, James. Signed up the the newsletter
Quick question - what’s the mechanism you hint at that allows for 0% iht in just 2 years?
You can read about these types of vehicles here: octopusinvestments.com/our-products/business-relief/
@SassySam read about that here: www.ftadviser.com/investments/2022/04/14/how-shareholders-can-benefit-from-100-inheritance-tax-bpr/
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.
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.
What a FANTASTIC video!
I watch lots of financial videos but I've not seen anything so far that covers this topic, awesome James, golf clap 👏👏👏
Thank you. I'm glad you liked it. Yes it's quite a niche topic. Hard to get lots of people to engage with it but everyone really should learn about this stuff.
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
I had no idea that the IHT bill could not be settled from entirely within the estate. Good to know.
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.
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.
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
Very helpful video James. I'd be interested to have your thoughts on using a Discounted Gift Trust as a mechanism to reduce IHT and provide non-taxable "pension" capital withdrawals, where the initial gift has an assessed portion (the "discount") that is immediately outside the Settlor's estate after creation and the remainder of the gift drops out after 7 years as per any Potentially Exempt Transfer.
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
If a tax bill can be reduce from 400k to just 60k it shows just how broken the system is, it should just be fair and not be able to be gamed like this.
It's not gaming the system. The same options are available to everyone, in the end it comes down to how much wealth you have built up and what services/products you can afford, or are willing to pay for.
@@OneAndOnlyMe I think what he's getting at is that it shouldn't be so complicated that it requires a significant amount of research and/or advice to avoid the pitfalls. I think I would agree and that goes for all of the tax structures in this country. When you phone HMRC twice on consecutive days (the second time because I didn't entirely trust the initial 'advice') and get two diametrically opposing answers, that's a broken and over-complex system.
@@davidf6326 I personally don't find it that complicated, the tax bands are pretty simple to understand, as are all the allowances. Yes, you have to read about them to know about them, but that's the same for anything in life.
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 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!