As the Scouts say, "Be Prepared"

Most of us know that we should take the time to prepare a last Will and Testament, but all too few of us actually get around to creating this important legal document. The reasons for this procrastination are many. Sometimes young people may feel that they are invulnerable and therefore do not need a Will. Young workers may feel that they have not yet accumulated enough assets to warrant a formal Will. And many older people may put off the creation of a last Will and Testament because the subject is morbid.

No matter what the reasons for procrastination it is important to overcome them. Putting off this important task does nothing except put your family at risk and postpone the inevitable day of reckoning. Fortunately there are a number of things you can do to make this admittedly unpleasant task a great deal easier. By preparing well you can take a lot of the pain and hassle out of creating a last Will and Testament while providing your loved ones with the legal and financial protection they will need in the event of your untimely death.

Make It a Family Affair

Having a family meeting about the creation of a Will may not be the most pleasant thing in the world, but it is one of the most important. Gathering the family together to talk about the creation of a Will is important, and keeping the lines of communication open during the process is just as important.

It is not necessary to involve young children in this process, and may parents will not wish to share financial details with their older kids, but it is a good idea to have age appropriate conversations with children who are mature enough to deal with such matters.

Adult children should definitely be part of this important discussion, especially since one of the adult children is likely to be named as the executor of the estate. This may also be a good time for parents to discuss their children's situations and prod them to create Wills of their own if they have not already done so.

Have a Serious Discussion

Now is also a great time to hold serious discussions about delicate issues such as the choice of guardianship for the children and the choice for executor of the estate. No matter who is ultimately chosen it is essential to make sure that:

a. They want the responsibility
b. They are capable of handling the responsibility

When choosing an executor for the estate it is vital to choose someone who is mature and responsible since that individual will be charged with the task of handling all the details of the estate. These duties will vary from estate to estate, but this person may be asked to look after any real estate and make prudent investment decisions with the funds your heirs will inherit.

Choosing a mature and responsible person is even more essential when it comes to naming a guardian for your minor children. It is essential that the person you choose have a genuine desire to raise the children in the event of your demise, so serious discussions are definitely in order here. This can be a difficult subject to broach, but it is certainly a discussion worth having.

Only after you have completed this planning should you sit down and actually start planning your Will. Taking these preliminary steps will make the process of creating your last Will and Testament much easier and considerably less stressful.

I Will You My Rabbits

It makes sense to make a Will. Most of us realise that, but actually getting around to it seems such a hassle. How much thought went in these "Wills with a difference"?

The famous magician and escapologist, Harry Houdini, couldn't escape death. Having died from a burst appendix, one of his biggest surprises came with the reading of his Will. His magicians equipment went to his former partner Theodore, who was also his brother. His magical powers didn't work on the next item - his considerable library of books on magic and the occult. He left these to the American Society for Psychical Research, but only on the condition that their research officer J Malcolm Bird, who also was the editor of their journal, resigned. The collection passed to the Library of Congress.

The rabbits that he used in his act came out of their hats and were divided around the children of friends. Continuing the odd theme, he left his wife ten words, which formed a secret code, with the promise that he would use these words to reach her from the afterlife. Each year for ten years, following his death, she faithfully held seances, but Harry never made contact.

Rock and blues singer Janis Joplin had a brief but memorable career. She recorded several rock classics and four albums, including "To Love Somebody" and "Me and Bobby McGee". After years of drug and drinks, she passed away from an overdose, aged 27. Two days prior to her death in 1970 she willed the figure of $2,500 to fund an all night party at her favourite pub so that her friends could "get blasted after I'm gone." It must have been some party - that was an appreciable amount of money back in 1970.

We've all heard of people that, unexpectedly, donate all their money to the cats' home, much to the dismay of their family. Lots of family feuds start when a Will is read. As long as the person who made the Will is of a sound mind and not under duress when the Will is made, it's their choice and can be seen as a gesture of their individuality.

Quirks apart, if you die without leaving a Will, the people whom you would wish to inherit will not necessarily be the ones that do so. You could have a partner of several years, but if you're not married or in a legal partnership, he or she won't get your estate, whatever your intentions and promises were. This can be sad when it's not clearly understood and can cause devastating financial consequences.

Wills that make you go "Hmmm..." Charles Millar

Charles Millar, a successful lawyer in Toronto, Canada, was well known for his practical jokes. And when he died on October 31, 1925, having never married and without any close relatives, he left a will that reflected his wry sense of humor.

For example, he left joint lifetime tenancy in a vacation home to three friends who despised each other. He also left stock in brewery to some Protestant ministers who supported prohibition.

But it was his final bequest that drew the most attention. It required that the balance of his estate be converted to cash ten years after he died and given to the woman who could produce the most children during that time period.

The Great Stork Derby, as the resulting contest became known, lasted until October 31, 1936. Four women, Anna Katherine Smith, Kathleen Ellen Nagle, Lucy Alice Timleck and Isabel Mary Macclean, each had 9 children and were awarded $125,000, the equivalent of about $1.5million today.

Last Will and Testament Interesting Facts....

The shortest Legal Will Ever....

To date, the shortest valid Will in the world is attributed to Karl Tausch of Germany, who simply stated "All to wife" in January of 1967.

Longest Will Ever....

Although American housewife Frederica Cook did not have many possessions, she still managed to write an extremley Long Last Will and Testament. When she was finished, her final wishes and goodbyes totalled 95,940 words-a length comparable to a novel. The bulk of her Will contained farewells, best wishes, and other words to her family, friends, and even enemies. At probate, the Will was not read.

Rejected Donations....

When actress Vivien Leigh (from Gone with the Wind fame) prepared her Will, she left her stunning eyes to an organ bank. The were unforutnately rejected because at the time of her death, she had suffered from tuberculosis.

Oldest Found Last Will and Testament....

The concept of a Will dates back to ancient days. In the past, the word 'Will' was used to specify real estate left to others, while 'Testament' was used to identify the personal belongings that one wished to leave to loved ones and friends. Today, the word 'Will' is used to refer to anything (real estate or personal pocessions) that is left behind by another. The oldest document that represents a Will was discovered by an archaeologist named Sir Flinders Petrie during an excavation in a tomb in Egypt. The tomb dated back to 2500 BC.

Roman Influence in Documenting Final Wishes...

During the 1st century, the Romans are credited with using the Will as a legally binding document. The ancient Romans acknowledge that the inheritance of property or goods could not occur unless the items in question belong to an individual and not a group or to the state. Thanks to Roman lawyers, the 'Living Will' was born.

During those times, a middleman (called a Familae Emptor) acted as the executor. For example, a husband would execute a fake sale of his estate to a middleman who would promise to let the husband keep his real estate for the duration of his life. When the husband died, the middleman 'owned' the estate and was responsible for distributing it according to how the deceased wished.

This practice allowed the direct transfer of goods from a dead person to the living. The Romans deemed this necessary to appease religious and legal obstacles. The dead no longer possessed any rights and as a corpse, the Romans believed that their possessions became property of the gods. The middleman was a way for 'sold' goods to remain amongst he living. Eventually, the Romans abandoned the use of middlemen and started to recognize that the testament of a dead man could be followed without angering the gods.

A Will is vital if you die, but what if you become incapacitated?

Despite writing wills, many people never make power of attorney in case they become mentally incapacitated. If it happens to you, it means The Court of Protection may take control of your assets, and your spouse may have to apply to access your bank accounts.

Why do you need power of attorney?

Everyone knows you should write a Will to make sure your loved ones are provided for when you die, but what happens if you are left mentally unable to make decisions because of accident or illness?

With an ageing population it happens more than most people think - and if you haven't got power of attorney specifying who can look after your affairs you'll have to go through the Court of Protection. The court was set up to protect the assets of vulnerable people.

Recent changes in the law

In 2007, as a result of the 2005 Mental Capacity Act, the new Court of Protection replaced the former office of the Supreme Court with the same name and was given an extended jurisdiction.

According to The Ministry of Justice, these changes have resulted in a more personalised approach, giving most people who deal with the court greater flexibility over how money is spent, whilst still safeguarding vulnerable people.

However the course is still seeing high levels of complaints and in December the President of the Court of Protection Sir Mark Potter announced he was setting up an ad hoc committee to review the Court's rules once again.

How to grant control of your finances - lasting power of attorney

There's an easy way to avoid the Court of Protection, and that's to grant someone you trust lasting power of attorney, giving them the right to look after specific aspects of your financial affairs or health and welfare after you lose the capacity to do so.

- You can get copies of the forms needed to complete either a Property and Affairs Lasting Power of Attorney covering money matters, or a Personal Welfare LPA covering medical matters, from The Asset Protection Strategy Ltd.

- You can choose to appoint anyone you trust as long as they are over 18 and not bankrupt

- You need to fill in the forms and get it signed by all relevant parties (yourself, an independent third party called a certificate provider who verifies your capacity, and the person you're appointing power of attorney)

- In addition you should list one or more people who you want notified of the application. If you list no one an additional certificate of capacity must be provided

- Registration costs £120 per form. Certain people, including those on means tested benefits and those earning less than a certain amount per year may be entitled to fee remissions, details of which can be found on the site of the Office of the Public Guardian

- The Lasting Power of Attorney must be registered before it can be used. This means that if you want to you can save it until a time when it's needed. However the advice is to get it registered as soon as you can firstly to avoid the long registration waiting period in emergencies, and secondly because if you've made mistakes and it's declared void it will be too late.

- Prior to 2007 it was possible to make Enduring Power of Attorney. This was a simpler document but didn't include some of the important safeguards against fraud built into Lasting Power of Attorney. It is no longer possible to make an EPA but they are still valid if they were made prior to 2007.

What Would You Do If You Had 46 Days to Live?

Imagine visiting the doctor for what you thought was a minor illness, and being told instead that you had a rare disease that would take your life within two months. How would you want to spend your final days? Would you have the capacity to make important legal and financial decisions while dealing with the shock and grief associated with your diagnosis?

These are the issue Chuck Jaffe addresses in his moving article "46 Days to Live: What's Your Plan?". Earlier this year, his brother, Rob, was unexpectedly diagnosed with primary amyloidosis, a rare blood disease that took his life in just 46 days.

Fortunately, two years before his diagnosis and death, Rob had the wisdom to visit an attorney to have an estate plan made. So, while Rob undoubtedly had plenty to deal at the end of his life, one thing he didn't have to worry about was making sure his legal affairs were in order.

Rob asked Chuck to share his story so that he could help other learn about the value of planning ahead. He wanted to impress on other.

How big a blessing it is to know - when their time comes - that they have everything in order, that they have everything in order, that they don't need to stress or worry about how things they worked their whole life for are going to turn out . . . I would not want to waste a minute of my life now having to do estate planning or worrying that I live long enough to get documents filed to whatever garbage comes with it.

By planning his estate while he was still healthy, Rob was able to evaluate all his choices and make the best decisions for his family instead of having to deal with the heartbreaking details when he knew his death was near. As a result, he was able to spend his last days focusing on the people and things that mattered most.

If you discovered today that you only ha 46 days to live, how would you like to spend you final days? I'd venture to guess that estate planning would not be high on your list. None of us like to think about dying. We all hope to live long, healthy lives. But we can't predict the future. We owe it to our families and ourselves to plan ahead.

Live on from beyond the groove

Music lovers can now be immortalised when they die by having their ashes baked into vinyl records to leave behind for loved ones.

A UK company called "And Vinyly" is offering people the chance to press their ashes in a vinyl recording of their own voice, their favourite tunes or their last will and testament. Minimalist audiophiles might want to go for the simple option of having no tunes or voiceover, and simply pressing the ashes into the vinyl to result in pops and crackles.

The company was founded by Jason Leach, who co-founded the techno group and record label Subhead. Leach explained there were a number of factors that made him launch the service, including thinking that he was 'getting a bit old' and 'might not be invincible'. His mother also started working at a funeral directors, which brought the whole funeral process closer to home. A third prompt was when he saw a TV programme that showed someone in America putting their ashes into fireworks, which made him think about how he might want to be remembered. And, he says, "It's a bit more interesting than being in a pot on a shelf."

The process of setting human ashes into vinyl involves a very understanding pressing plant. Basically the ashes must be sprinkled onto the raw piece of vinyl (known as a 'biscuit' or 'puck') before it is pressed by the plates. This means that when the plates exert their pressure on the vinyl in order to create the grooves, the ashes are pressed into the record.

The site has a very irreverent style and operates under the strapline "live on from beyond the groove". One of Leach's family stories suggests why he has a practical attitude to people's ashes.

He explains how he went out on a boat with his family members to sprinkle the ashes of his grandfather into the sea. His uncle "released them on the wrong side of the boat and so the ashes went all over us." Apparently the same thing happened to his father, too!

And Vinyly also offers personalised RIV (Rest In Vinyl) artwork -- the simple version just carries your name and your life span, or you can have your portrait painted by artist James Hague, using your ashes mixed into the paint.

The basic package costs £2,000 and comprises of the standard artwork along with up to 30 ash-flecked discs with whatever sounds you choose, lasting a maximum of 24 minutes.

Extras include "Bespook Music", where artists from The House of Fix and www.daftwerk.com write a song especially for you and global distribution of your record in vinyl stores.

The main challenge is choosing the music. Leach says: "It's difficult to think of what to put on your record because you want it to be the best album you can imagine."

What would he have on his own record? "I would definitely have a recording of my own voice as well as some 'sound photos' of places that are important to me and then I would have some of my own music on there. It's something I'm working on."

An Interesting Will Bequest

Benjamin Franklin bequeathed $55,000 in 2010 Dollars to each of the cities of Boston and Philadelphia, in trust to gather interest for 200 years. As of 1990, more than $2,000,000 had accumulated in Franklin's Philadelphia trust, which had loaned the money to local residents. When the trust came due, Philadelphia decided to spend it on scholarships for local high school students. Franklin's Boston trust fund accumulated almost $5,000,000 during that same time; at the end of its first 100 years a portion was allocated to help establish a trade school that became the Franklin Institute of Boston and the whole fund was later dedicated to supporting this institute.

Where there's a Will?

Our history is full of quirky tales of strange legacies and contested Wills

Two of our most ironic and revered national figures - William Shakespeare and Horatio Nelson - left interesting bequests and instructions in theirs.

There has been much speculation about whether leaving your wife your second-best bed, as Shakespeare did to Anne Hathaway, was a warm tribute or calculated sleight.

Lord Nelson added a codicil to his Will on the morning of the Battle of Trafalgar, in which he left Lady Hamilton (with whom he had an illegitimate daughter Horatia) as a legacy to King and country, asking also that she be financially supported.

Anne Hathaway's thoughts have not been recorded. Nelson's petition on behalf of his mistress was not successful and within 10 years of Nelson's death at Trafalgar, Lady Hamilton had died in poverty in Calais.

Today making a Will is no less important than it was centuries ago - indeed it is even more so, as we shall see.

A poll for the charity Barnados showed earlier this year that over half the adults in the UK have not made a Will. The figure for cohabiting couples who haven't made a Will is shown as higher at 74%.

Some people put off making a Will because they are uncomfortable - even superstitious - about thinking about a time after they're gone. Others may think wrongly that their estate will go to their nearest and dearest automatically.

But once you have made a Will, unless circumstances change and you wish to make amendments or additions, you really can consider the job done and forget about it. There are many good reasons to make a Will, not least of which is that your wishes about who inherits your assets and more importantly, if you have children, who should care for them when you are no longer around, are known and set down in a legal document.

For example, if you do not have a Will, are unmarried but living with your partner, you may be putting your loved ones at risk. A person who dies without making a valid Will is known as dying 'intestate'. In these cases, the assets belonging to such a person are distributed according to a strict set of default rules, and instead of going to the deceased's chosen beneficiaries, they are left to relatives in a particular order.

If someone dies without close relatives, it may even mean the estate passing to The Crown, even if the deceased would have preferred friends or charities to benefit.

When you are cohabiting, the cohabitee has no entitlement in the event of intestacy therefore it is essential that you make appropriate provision for each other by making Wills.

If marriage or a civil partnership is not on the agenda, a cohabitation agreement and/or deed of trust when you start to live together, or when you decide to have children, will help to put your mind at rest.

It is also important to note that the effect of entering a marriage or civil partnership is to automatically revoke a Will.

The only way around this is to make a Will called "in contemplation of marriage" to a particular person and within a particular time - then, if these conditions are met, the Will remains valid. For parents with children under 18, a Will takes care of such issues as naming guardians for the children and if possible, appointing trustees for such capital as we will leave to the children on death.

If the unexpected does then happen it is one less - hugely important - detail to have to worry about.

A Will is one of those things that only shows its real power and importance when absent. Time spent now preparing a Will can save heartache and more expense in the future.

Twin Room, Not Double

Two separate life policies are often better value for couples than a joint policy - it just makes sense.

Decisions about value for money are a daily reality in all our lives. Whether it is a new car, a computer or even a box of chocolates, most people will take the time to compare prices and choose the item that gives them the best value for their hard-earned cash.

When it comes to taking out life or critical illness cover, price has always been an issue. For many people protection is seen as a luxury product rather than a necessity. But with the UK population worringly underinsured, providers need to be offering a product that not only meets the customer's needs but is also seen to be offering good value for money.

Take joint life plans. When a couple needs protection, it is natural for an adviser to quote for a joint life policy. But is this best for the customer from the point of view of price and the protection is provides? Joint life policies seem perfectly logical for covering mortgages because a loan only has to be paid off once. But these days in order to provide the family complete protection a joint life policy might not be enough. The death or critical illness of either partner can have devastating effects on the family finances. Effects the family may feel unable to cope with at a time of emotional stress.

Certainly, a joint life policy will be cheaper than taking out two single life plans. But for the benefit of continued protection and peace of mind, it really is worth talking to clients about the option of taking out two single life policies.

For example, consider Jackie and James, both non-smokers aged 35. They have two children and both have full-time jobs. They recognise the need for life insurance and are advised to take out a joint life term assurance over 20 years for £100,000. Their premiums have been quoted at around £9 a month. This policy will pay out once if either of them dies within the term.

Had Jackie and James been advised to take out two single life policies, their monthly premiums would be about £15. However, they could ultimately end up with a double payout of £200,000, as both deaths will be covered, rather than just the first.

Single life policies may be more expensive, but the advantages mean they are much better value for money. With joint life first death, if one person dies, the second person is left with no life cover. If the first death happens some time after the policy has been taken out, the survivor is likely to be older and therefore more expensive to insure.

Single Life

Choosing the single life policies approach also provides a couple with more flexibility. If they should unfortunately split up, they would each have their own cover. Joint life first death policies cannot be separated which would mean cancelling the joint policy and taking out two single life plans.

Another benefit of two separate life policies is that each person can put their plan in trust for the other. And if the other is not around or the relationship breaks down before death, the plan owner can nominate other people to receive the payment. This can also be a useful way of mitigating inheritance tax and speed up the payment process, as the insurance company can pay to trustees straight away, rather than having to wait for probate.

So when it comes to value for money and flexibility the separate single policy approach wins hands down. It might involve a little extra paper work, and a few more pounds a month but the extra protection it provides more than compensates.

Exposed: Banks that prey on the bereaved

Bereaved families are being preyed upon by banks and unregulated probate firms which charge thousands of pounds to execute the estate of their loved ones.

Money Mail and consumer group Which? have separately investigated the often-murky world of will-writing and probate services - the legal process of handling the affairs of the deceased.

They found shocking evidence of:

- High street banks charging almost twice as much as solicitors for probate services
- Grieving relatives subjected to 'hard-sell' tactics
- Banks automatically appointing themselves as executors of wills
- Unregulated firms left free to give poor advice
- Bereaved families prevented from shopping around for better deals.

Executing or administering the estates of the deceased is a lucrative business for banks, solicitors and specialist probate and will-writing firms, with estimates saying it is worth more than half a billion pounds a year. When someone dies, executors must deal with the financial details such as the sale of assets, paying bills and distribution of the estate among the beneficiaries.

Families can often do this themselves, with the whole process costing no more than a few hundred pounds. But banks are exploiting the fears of customers and appointing themselves as executors.

Consumer group Which? sent eight undercover researchers to make 42 visits or calls to solicitors, specialist will-writers and banks around the UK posing as divorcees wanting to write a Will. They found that banks will charge on average £10,830 for executing a typical £270,000 estate - around double the £4,759 charged by will-writers and £5,199 by solicitors.

Barclays is the most expensive of the High Street giants, with an average charge of £13,395.

From the Daily Mail on 16 June 2010.

Save thousands for those you care about

Whether one is a chipper young thing still living with a belief in their immortality, or a more mature individual looking to the winter of their years, considering what will happen once we've gone is never a pleasant thing. Most of us will leave any planning that's needed right until the very last moment, simple so that we don't have to think about the whole business of death.

Unfortunately when it comes to some things such as tax, not planning can waste a lot of money that could have been saved. In the UK we are subject to many different taxes, some attached to our working lives, some to our shopping trips and one in particular attached to our deaths.

Inheritance Tax comes into play when someone dies and their 'estate' is valued as being worth over the threshold set by the Chancellor (for 2010-11 this was £325,000). Someone's 'estate' comprises of any cash in bank accounts, investments, property and businesses, and so even a moderately well-off business owner's estate could be effected. When your estate is valued over the threshold set, Inheritance Tax is payable at forty per cent on the amount over the threshold.

Gifts and trusts made during a person's lifetime are also subject to the tax, unless made at least seven years before they die, and so it is not possible to avoid the tax by simply giving everything away prior to death (unless of course you are happy to live without your cash for at least seven years in order to benefit your heirs!). There are ways however that gifting can lower your Inheritance Tax bill, if it is done within HMRC's rules, so it is worth sitting down with an adviser from The Asset Protection Strategy to see what is possible.

Even if an estate is valued over the threshold, there are situations when Inheritance Tax does not have to be paid. For instance, when an estate goes to a spouse and/or civil partner it is usually exempt from Inheritance Tax, as are wedding gifts to others, although it is important to note that any wedding gift given must be genuine and not for profit.

The tax is also not usually payable on gifts bequeathed to UK registered charities, and if the deceased owned woodland or National Heritage property there is usually some tax relief available.

It is obviously important that you make a will, to prevent things happening to your estate that you had not intended, but before you do, it is important to get some good professional tax advice. If your estate is likely to exceed the threshold set by the Chancellor, sit down with your adviser and discuss your options, there are ways to lower potential Inheritance Tax bills after you've gone that stay within the rules, but you really do need a professional to explore these for you.

Once your adviser has given you the options and you have made your decisions, it's time to sort out appropriate Wills and Trusts. Forcing yourself to face the subject of your estate after your death, could save your relatives and other beneficiaries thousands of wasted pounds.

Inheritance Tax Planning - Shop around before writing a Will

The process of inheritance tax planning can turn out to be costly for many who are unaware of the various elements involved, the Office of Fair Trading warned consumers this week.

While solicitors generally charge up to £200 to write a Will, consumers who then appoint their solicitor as the executor of their estate are often unaware that this carries additional and higher costs.

For the average person, appointing an executor to administer their estate will cost, on average, between £3,000 and £9,000, says the OFT, and of the 43% of people who do appoint their Will Writer as their executor, a quarter claimed they had not been made aware of the likely charges.*

The OFT estimated that by failing to shop around for Will Writing and Executor services costs consumers some £40m per year.

Benefits of a Will

A recent poll for Barnardo's calculated that 58% of UK adults have no Will in place, and this rises to 74% of UK couples.

Writing a Will is a keystone of efficient inheritance planning, and can help you avoid a hefty Inheritance Tax bill for your children, demanding 40% of the value of parts of your wealth and estate. With some basic Inheritance Tax advice from a qualified financial planner, it is often possible to drastically minimise or avoid Inheritance Tax altogether.

Dying with no Will in place is known as 'dying intestate' and leaves the duty of administering your estate, not to your family, but to the State, under the 'rules of intestacy'.

Many people are surprised to hear that their wife or husband may not be entitled to receive everything. Furthermore, an unmarried partner has no automatic right of inheritance whatsoever, unless specific inheritance planning is in place through a Will. In other words, the notion of a 'common law' partner is nothing more than wishful thinking.

With good Inheritance Tax advice and proactive inheritance planning, a Will can not only guarantee that your assets pass to those for whom you intend them, but can also be used for other purposes, e.g. to nominate guardians for your children, should you die before they reach adulthood.

Keeping your Will current

Once you have done your inheritance planning, and have a Will in place, it is crucial to keep it up to date. Barnardo's research found that 80% of those with Wills had not updated them in 10 years. An out of date Will can be as bad as no Will at all.

For instance, if you make a Will but then marry, that Will is no longer valid. If you make a Will leaving your wealth to your spouse, but then divorce or separate, they will still benefit from the Will when you die. If you then remarry, but forget to update your Will, your first spouse will inherit your wealth, leaving your second spouse penniless and possibly homeless as well.

Another interesting point is to use percentages, not finite numbers, when doing your Inheritance planning. If you had a house valued at £200,000 and stated that your family should get £175,000 and the remainder go to your local church, that may be all well and good at that time. If however, by the time you die, the value of your home has risen to £300,000, your family now get 'only' the same £175,000, and the vicar is laughing all the way to the bank.

*OFT survey of 2000 UK adults, February 2010

With thanks to Roisin McDaid

Is this the worst Will joke in the world?

A man went to his lawyer and said, "I would like to make a Will but I don't know exactly how to go about it."

The lawyer said, "No problem, leave it all to me."

The man looked somewhat upset and said, "Well, I knew you were going to take the biggest slice, but I would like to leave a little to my children too!"

If you have a Will joke that's worse than this, please contact us at http://www.theassetprotectionstrategy.co.uk/contact.html

Wimbledon win for Roger Federer could net Oxfam 100,000 pounds

A bet placed seven years ago by a man who left his estate to Oxfam will raise more than £100,000 for the charity - if Roger Federer wins Wimbledon for a record breaking seventh time.

In 2003, Nicholas Newlife from Kidlington in Oxfordshire staked £1,520 with at odds of 66/1 for Federer to win seven Wimbledons before the year 2020. The Swiss player has won six Wimbledon singles titles, and a seventh will see the bet produce a payout of £101,840.

Newlife left his entire estate to Oxfam when he died in February 2009, aged 69, which included the outcomes of the series of outstanding bets he had placed with William Hill between 2000 and 2005.

One, worth £16,750, has already been claimed by Oxfam, after Newlife bet £250 that Federer would win at least 14 grand slam titles before 2020, at 66/1. The bookmakers paid out in March. Other bets are pinned on the future successes of another tennis player, Andy Roddick, and West Indian cricketer Ramnaresh Sarwan.

One bet placed £1,000 on Roddick to win at least seven grand slam singles titles before 2020 at 33/1, which would win £34,000 for Oxfam. Another placed £250 on Sarwan to make more than 9,000 test match runs by the end of 2019 at 250/1. This would win £62,750.

Cathy Ferrier, fundraising and supporter marketing director at Oxfam, said: "We're enormously grateful to Mr Newlife for his generous gift, and will be keeping a close eye on Wimbledon as a result.

"Legacies amount to 10% of our total income from individuals, so they're essential, and as this case proves, they can come in all shapes and sizes. It is easy to make a will and including Oxfam could leave a lasting legacy for those most in need."

Oxfam benefits from about 600 legacies a year, receiving around £10-11m. So when you're having your Will drafted, don't forget to leave a little something for a good cause you care about.

Doghouse Estate

"I've seen a look in dogs' eyes, a quickly vanishing look of amazed contempt, and I am convinced that basically dogs think humans are nuts." - John Steinbeck

One of today's Wall Street Journal front page headlines reads, "Little Dog Caught In Big Estate Feud". The little dog, "Conchita" is a dolled-up chihuahua who was the favourite of Gail Posner, a well-known Miami heiress who died this past March. Conchita and her canine friends inherited the $8.3 million Miami Beach mansion as well as a $3 million trust fund and the paid care of several housekeepers and personal aids. The doggy in that window is worth millions!

Ok, so she was a bit eccentric. So what? Well, the will and trust are being challenged by Mrs Posner's son, on the basis that attorneys and household employees used undue influence in estate planning decisions. Perhaps he's onto something. The courts will decide. And while most of us don't have a Miami Beach estate, this story does remind us of the importance of good estate planning.

One of the largest issues facing us is just making the determination that we are going to invest a little time and money to plan for the legacy we will build and leave through our estate. We procrastinate, thinking that we don't need to do this now. We can always do it later.

Maybe it's no wonder dogs think we're nuts!

Nigella sparks debate over charitable legacies

Domestic goddess Nigella Lawson recently hit the headlines with her declaration that she intends to leave her entire to various charities rather than bequeath any of it to her children. Her 64-year old partner, Charles Saatchi, takes the polar opposite view and believes that his and Nigella's combined three offspring from previous marriages should inherit the lot, currently estimated at £10million.

Whatever resolution the two finally agree to their disagreement, it has brought into focus the fact that charities benefit greatly from the proceeds of many people's estates. Whether or not you agree with Ms. Lawson's philosophy of letting the kids "do it for themselves" leaving a legacy to charity is definitely a very noble action.

One of the most notable charitable legacies in the UK is the Wellcome Foundation, formed using the fortune of Sir Henry Wellcome after his death in 1936. However, many modern billionaires are not waiting until they die, but instead have decided to distribute their fortunes to charities whilst still alive, prompted by the decision of Bill Gates. The Microsoft chairman has set up a $7billion foundation which aims to close the considerable health and education gaps between Western and third world countries.

But, whilst billionaires can set up their own charitable foundations there are scores of existing worthwhile charities that constantly need funding. Charities derive a significant amount of their income from bequests and it's not just multi-millionaires or billionaires that provide charitable legacies; many ordinary folk like to leave a portion of their accumulated wealth to charity following their death. Indeed, many smaller contributions soon add up and it is those donations that can often mean the difference between charities carrying on their good work or being forced to give up.

Bequeathing money in this way is straightforward and all it takes is the addition of a few words to your will. Most charities will furnish you with examples of legacy wording and, of course, advisers' operating The Asset Protection Strategy are familiar with the process. Sadly, one in five people die without making a will and their estates pass into probate, causing considerable financial and logistical problems at a time of grief for their family.

By sitting down and sorting out a will, you have the security of knowing that your wishes will be respected after your death. Not only will you be able to document the distribution of your assets between family, friends and charitable causes, but you can include instructions on how you wish your funeral to be conducted.

So, whether or not you want to go the Nigella route and leave all your worldly goods to charity, make a will and make sure everyone knows your wishes.

The Scotsman - Lianne Lodge: Home truths about inheritance

In the recent leaders' debates, there was much commentary in Scotland that a lot of the issues related only to England and did not afffect us here north of the Border.

This has highlighted the significant differences in public control and law between different parts of the UK. However, many people may not realise that where they live can have a significant impact on what happens to their assets on death.

This is significant, because more than half of UK adults have yet to write a will, according to a recent poll for charity Barnardo's, including three quarters of cohabiting couples. Yet few appreciate what will happen should they die prematurely, and how different laws apply throughout the UK. This is particularly relevant for those with family connections throughout Britain.

In Scotland, if you die without leaving a will, your spose or civil partner would be entitled to the matrimonial home up to a value of £300,000, plus furniture of up to £24,000 and cash up to £75,000 if you have no children. If there are children, this figure is reduced to £42,000.

In simple terms, the spouse would inherit a third of the moveable estate, which basically means everything other than any land or buildings. The children would inherit any other land or buildings plus the rest of the matrimonial home if the deceased's share is over £300,000 and two thirds of everything else. If there are no children, this amount would be transferred to parents and siblings rather than the spouse inheriting the full estate. If there are no parents or siblings, then nieces and nephews would inherit the balance. Only if there are no children, parents, siblings, nieces or nephews would the spouse inherit the full estate.

If there is no surviving spouse then the children would inherit the full estate, or the parents and siblings if there are no children or a spouse.

If there is no will, a cohabitee (live-in partner) could apply to court for an award from the estate. The court could then award the partner an amount up to that which a spouse would have been entitled to. However, there are no guarantees, and as this is a recent change to the law there is a lot of uncertainty surrounding how inclined the courts would be to make such an award. The application must be made by the cohabitee within six months of the death.

In Scotland, even if you have a will, your children can still claim against your estate regardless of the terms of the will. If there is a surviving spouse, the children would be entitled to a third of the moveable estate between them, and if there is no spouse this would increase to a half share between them.

The law in England differs greatly to that in Scotland. For example, where there is no will and the deceased leaves a spouse or civil partner and children, the spouse or civil partner is entitled to the first £250,000 of a person's estate plus a life interest in half the estate over £250,000 plus all personal items. The children will then inherit half of the estate over £250,000 immediately and the other half when the spouse dies.

If there are no children, the spouse inherits the first £450,000 and the rest is divided between the parents if they are still alive, and if not it goes to the siblings.

As in Scotland, if there is no spouse but children then the children would inherit the full estate.

It is important to note that the law in Scotland in relation to succession after death differs greatly from that in England. That said, the tax position is the same throughout the UK and therefore inheritance tax would still be chargeable on the usual terms.

The answer is not always straightforward and I urge people not to be panicked into a hop across the Border. When it comes to deciding which law would apply, it is based on your domicile. This is more than simply your residency and will take on board factors such as where you were born, your parents' nationality, where you own property, where you consider home and your plans for the future.

The process of winding up someone's estate is also different depending on which country you are domiciled in.

Probate is a term a lot of people will be familiar with; however, this is an English term. Strictly speaking, a grant of confirmation is required in Scotland to begin to finalise someone's estate, and the procedure is very different in each country.

Confusion can be avoided if you have a will and it gives clarity as to who you want to inherit what.

Be careful, however, as the signing requirements differ in the two countries and if there is any question over where your estate would be administered it is always worth ensuring your will is signed in a way that is acceptable to both countries.

To see the original article, go to http://www.theassetprotectionstrategy.com/pr/100509Scotsman.pdf