Why you need a will and a lasting power of attorney if you own your home

For most families the home is the biggest asset. A will and lasting powers of attorney are two simple documents that protect it, and the people who live in it. Many people put them off, which can leave their family with extra cost and stress at a difficult time.

What a will does

A will says who should inherit from you, who should look after any young children and who should deal with your estate. If you die without a will, the law decides who inherits. That may not match what you would have wanted, and it can cause problems for a partner you are not married to, for a blended family, or where you own a home with someone else.

How you own your home matters

If you own your home with someone else, it matters whether you are joint tenants or tenants in common. Joint tenants own the home together, and when one dies it passes automatically to the survivor. Tenants in common own shares that can pass under each person's will. Which suits you depends on your circumstances, so it is worth checking how you hold the property.

What a lasting power of attorney does

A lasting power of attorney, or LPA, lets you choose people to make decisions for you if you cannot. There are two types:

• Property and financial affairs, for example paying bills or selling a home
• Health and welfare, for example decisions about care

An LPA must be registered before it can be used, and registration can take several weeks, so it is best to arrange it before you need it. Without one, your family may have to apply to the court to manage your affairs, which can take time and cost money.

When to review your documents

Check your will and powers of attorney after any major change, such as a marriage or divorce, a birth, a move, buying or selling a property, or a change in your finances. If you are thinking about equity release, review them at the same time, since it changes the value of your estate.

Trusts and inheritance tax

Inheritance tax may be due on larger estates, and rising property values can bring an estate closer to the thresholds. Trusts can be useful in some situations, but they add complexity and cost, and we cannot promise that any arrangement will reduce the tax payable. Please take advice from a qualified tax adviser on your own position.

Find out more

Read about our wills and estate planning service, or find your area on our areas we cover page.

Talk it through

If you would like to talk about a will or lasting powers of attorney, get in touch.