A Step-by-Step Guide to the Estate Planning Proces

For many people, the phrase “estate planning” can sound complicated, expensive, or like something to think about later in life. In reality, estate planning is about making thoughtful arrangements for what should happen to your affairs if you die or lose the capacity to manage them yourself.

Estate planning is not only for wealthy people or older generations. If you have a home, savings, investments, business interests, children, dependants, personal possessions or people you care about, having a clear plan can help make your wishes easier to understand and follow.

At Codicil Estate Planning & Consultancy, we support clients across England and Wales through the estate-planning process in clear, accessible language. We help clients understand their options, organise their wishes and prepare relevant estate-planning documents, including Wills, Trusts and Lasting Powers of Attorney (LPAs).

Where a client’s circumstances require specialist legal, tax, financial, probate or other professional advice, we signpost or refer clients to appropriately qualified and regulated professionals.

This guide explains the typical stages of the estate-planning process.

What Is Estate Planning?

Estate planning is the process of making arrangements for your affairs during your lifetime and for what should happen to your estate after your death.

It may involve considering:

• Who you would like to benefit from your estate.
• Who should look after your children or dependants if necessary.
• Who you would trust to make decisions on your behalf if you lose mental capacity.
• How your property and other assets should be managed or passed on.
• Whether particular assets or family circumstances require additional planning.
• How to make your wishes clear and reduce avoidable confusion for those close to you.

Estate planning commonly involves documents and arrangements such as Wills, Trusts and Lasting Powers of Attorney (LPAs). The appropriate arrangements will depend on your individual circumstances, wishes and assets.

The information in this guide relates to England and Wales and is provided for general educational purposes. It is not a substitute for advice tailored to your individual legal, tax or financial circumstances.

Step 1: Taking Stock of Your Situation

The first step is to get a clear picture of your current position. Before any documents are drafted, it helps to spend a little time thinking about three key areas.

1. What you own

Before preparing your estate-planning documents, it helps to understand your current circumstances.

There are three useful areas to consider.

1. What You Own and Owe

Start by making a list of your assets and significant liabilities.

This may include:

• Your home and other properties.
• Bank and savings accounts.
• Investments.
• Pensions.
• Business interests.
• Life insurance or death-in-service benefits.
• Valuable possessions.
• Family heirlooms or items with particular sentimental value.
• Mortgages, loans and other liabilities.

You do not necessarily need to have every figure available before beginning the process. The purpose is to develop a clear overall picture of your circumstances.

2. Who depends on you

Think about the people who rely on you financially or may need support in the future.

This could include:

• A spouse or civil partner.
• A partner.
• Children or step-children.
• Elderly parents.
• Vulnerable relatives.
• Other family members or individuals you wish to support.

Consider what you would want to happen to them and whether there are particular circumstances that should be taken into account.

3. What your wishes are

Consider what matters most to you.

For example:

• Would you like your partner to have the ability to remain in the family home?
• Do you want to provide for children or grandchildren?
• Are there particular individuals or charities you would like to benefit?
• Do you have particular wishes concerning personal possessions?
• Who would you trust to make decisions about your finances if you could no longer do so?
• Who would you trust to make decisions about your health and welfare?

You do not need to have every answer before starting your estate plan. The process can help you identify the areas that need further consideration.

Step 2: Your Initial Consultation

An initial consultation is an opportunity to discuss your circumstances, priorities and wishes and to understand the estate-planning options that may be relevant to you.

At Codicil, this may include discussing:

• Your family structure.
• Whether you are married, in a civil partnership, living with a partner, separated, divorced or widowed.
• Whether you have children or children from previous relationships.
• Your property and other assets in broad terms.
• Existing Wills, Trusts or LPAs.
• Your priorities and concerns.
• Any particular family circumstances that may require additional consideration.
• Your wishes for the future.

The purpose is not simply to complete forms. It is to understand what you are trying to achieve and identify the estate-planning documents and arrangements that may be relevant.

You should have the opportunity to ask questions and understand the practical steps involved.

Where a matter requires specialist legal, tax, financial or other professional advice, we will explain when it may be appropriate to seek advice from an appropriately qualified and regulated professional.

Step 3: Identifying the Right Tools

Once your circumstances and objectives have been discussed, the next stage is to consider which documents or arrangements may form part of your estate plan.

Three commonly used estate-planning documents are Wills, Trusts and Lasting Powers of Attorney.

Wills

A Will allows you to set out your wishes for what should happen to your estate after your death.

Depending on your circumstances, a Will may include provisions concerning:

• Beneficiaries.
• Executors.
• Specific gifts.
• Charitable gifts.
• Children and guardianship.
• Personal possessions.
• Trust arrangements.

If someone dies without a valid Will, their estate may be distributed according to the intestacy rules rather than according to their personal wishes.

A properly prepared Will can therefore be an important part of an overall estate plan.

At Codicil, we provide estate-planning consultancy and support with the preparation of personalised Will documents based on the information and wishes provided by our clients.

Where specialist legal advice is required, we signpost clients to an appropriately qualified and regulated legal professional.

Trusts

Trusts can form part of some estate plans, either during a person’s lifetime or through provisions contained within a Will.

A trust generally involves assets being held and managed by trustees for the benefit of one or more beneficiaries.

Depending on the circumstances, trusts may be considered in relation to matters such as:

• Providing for children.
• Supporting vulnerable beneficiaries.
• Managing inheritances.
• Controlling how or when assets are distributed.
• Certain family and estate-planning arrangements.

Trusts can be complex, and they are not appropriate for everyone. Their legal and tax implications can also vary significantly depending on the type of trust and the circumstances involved.

At Codicil, we can help clients understand how trusts may form part of an estate-planning strategy and support the preparation of relevant estate-planning documentation. Where specialist legal or tax advice is required, we signpost clients to appropriately qualified and regulated professionals.

Lasting Powers of Attorney (LPAs)

A Lasting Power of Attorney, commonly known as an LPA, allows you to appoint people you trust to make decisions on your behalf if you are unable to make those decisions yourself.

There are two main types of LPA:

Property and Financial Affairs LPA — concerning matters such as money, property and financial decisions.

Health and Welfare LPA — concerning decisions about your health, care and welfare.

An LPA must be registered with the Office of the Public Guardian before it can be used.

Putting an LPA in place while you have the necessary mental capacity can help ensure that trusted people are formally appointed to act on your behalf if the need arises.

Codicil can support clients with the preparation of personalised LPA documentation and provide practical guidance throughout the process. Where specialist legal advice is required, we can signpost clients to an appropriately qualified professional.

Step 4: Putting the Documents in Place

Once your estate-planning objectives have been established, the next stage is to prepare the relevant documents.

At Codicil Estate Planning & Consultancy, we use specialist estate-planning CRM software to support the preparation of personalised estate-planning documents, including Wills, Trusts and LPAs, based on the information and wishes provided by our clients.

Our role is to make the process structured and understandable.

This may involve:

Preparing

Gathering the information required to prepare your estate-planning documents based on your circumstances and stated wishes.

Explaining

Helping you understand the purpose of the documents and the practical steps involved in putting them in place.

Organising

Helping you keep your estate-planning information and documents organised so that the relevant details are clear and accessible.

Signposting

Identifying circumstances where specialist legal, tax, financial, probate or other professional advice may be appropriate and signposting you to an appropriately qualified and regulated professional.

Coordinating

Where appropriate, working alongside your chosen professional advisers so that the different aspects of your estate-planning arrangements can be considered in a coordinated way.

It is important to understand the distinction between estate-planning consultancy and regulated professional services.

Codicil Estate Planning & Consultancy is an independent, unregulated estate-planning consultancy. We are not a solicitor’s firm and do not provide regulated legal services or reserved legal activities, including probate services.

Where a matter requires specialist regulated advice or a regulated service, we will signpost or refer clients to an appropriately qualified and regulated professional.

Step 5: Signing, Witnessing and Registering Your Documents

Different estate-planning documents have different formal requirements.

For example, Wills have specific requirements concerning signing and witnessing, while LPAs must be registered with the Office of the Public Guardian before they can be used.

We can provide practical information about the general process and help clients understand what steps are involved.

Where a client’s circumstances are unusual or complex, or where specialist legal advice is appropriate, we recommend obtaining advice from a suitably qualified and regulated professional.

The important thing is to ensure that the appropriate formal requirements are followed for the particular document being put in place.

Step 6: Keep Your Estate Plan Up to Date

Estate planning is not necessarily a one-off exercise.

Your family circumstances, assets and personal wishes can change over time. Changes in the law and tax rules may also affect your planning.

Events that may prompt you to review your estate plan include:

• Marriage or civil partnership.
• Separation or divorce.
• The birth or adoption of a child or grandchild.
• The death of a beneficiary, executor, trustee or attorney.
• Buying or selling property.
• Starting, selling or significantly changing a business.
• Receiving a significant inheritance.
• A significant change in the value or nature of your assets.
• Changes in your wishes or family circumstances.

It is also sensible to review your arrangements periodically even if there has been no major life event.

Where changes involve specialist legal, tax or financial considerations, you should seek advice from an appropriately qualified professional.

Estate Planning Consultant vs Solicitor: What’s the Difference?

Estate planning can involve several different types of professional, and understanding the distinction can help you choose the right support.

An estate planning consultant can help you understand the estate-planning process, clarify your wishes, organise relevant information and consider the documents and arrangements that may be relevant to your circumstances.

At Codicil Estate Planning & Consultancy, we provide estate-planning consultancy and practical support relating to Wills, Trusts and Lasting Powers of Attorney. We use specialist estate-planning CRM software to support the preparation of personalised estate-planning documents.

A solicitor or other appropriately regulated legal professional may be required where a matter involves specialist legal advice or a regulated legal service.

Other professionals may also be relevant depending on your circumstances. For example:

• Tax advisers for specialist tax advice.
• Financial advisers for regulated financial advice.
• Probate professionals or solicitors where probate or estate administration services are required.
• Specialist legal professionals where complex legal issues, disputes or unusual circumstances arise.

At Codicil, we do not attempt to replace these professionals. Instead, where specialist advice or regulated services are required, we signpost or refer clients to appropriately qualified professionals.

When Might You Need Specialist Professional Advice?

Estate planning can become more complex where there are circumstances such as:

• Significant or complex business interests.
• International assets or connections.
• Complex family arrangements.
• Potential disputes between beneficiaries.
• Significant tax considerations.
• Vulnerable beneficiaries.
• Complex property ownership.
• Existing trusts with complicated arrangements.
• Specialist financial or investment considerations.

In these situations, additional professional advice may be appropriate.

Codicil can help clients understand when a particular area may require specialist input and signpost them to an appropriately qualified and regulated professional.

Important Information About Codicil Estate Planning & Consultancy

Codicil Estate Planning & Consultancy is an independent, unregulated estate-planning consultancy based in London and serving clients in England and Wales.

We provide estate-planning consultancy and practical support relating to Wills, Trusts and Lasting Powers of Attorney, including support with the preparation of personalised estate-planning documents using specialist estate-planning CRM software.

We are not a solicitor’s firm and do not provide regulated legal services or reserved legal activities, including probate services.

We do not provide specialist tax or regulated financial advice.

Where a client’s circumstances require specialist legal, tax, financial, probate or other professional advice, we signpost or refer clients to appropriately qualified and regulated professionals.

The information contained in this article is provided for general educational purposes and relates to estate planning in England and Wales. It should not be treated as a substitute for advice tailored to your individual circumstances.

A Manageable Process, One Step at a Time

Estate planning does not have to feel overwhelming.

Breaking the process into manageable stages can make it easier to understand your options, communicate your wishes and put appropriate arrangements in place.

You do not need to have everything worked out before you begin.

The first step can simply be understanding your current position, thinking about the people and things that matter to you, and considering what you would like to happen in the future.

At Codicil Estate Planning & Consultancy, we can help you work through the estate-planning process in clear, accessible language and support you with the preparation of relevant estate-planning documents.

Where specialist regulated advice or services are required, we can signpost or refer you to an appropriately qualified professional.

If you would like to discuss your estate-planning requirements, contact Codicil Estate Planning & Consultancy to arrange an initial conversation.

Any initial discussion is provided on a general-information basis and is not a substitute for personalised legal, tax or financial advice.