Wills & Trust

# Wills & Trusts – AIM Mortgages

## Protect Your Property and Your Loved Ones’ Future

You’ve worked hard to build your property portfolio and secure your family’s home. But have you protected what you’ve built? At AIM Mortgages, we don’t just help you acquire property – we help you safeguard it for the future. Our Wills & Trusts service ensures your assets pass to the right people, in the right way, at the right time.

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## Why Wills & Trusts Matter for Property Owners

### Your Property is Your Biggest Asset

For most people, property represents their largest financial asset. Without proper planning, inheritance tax, family disputes, and legal complications can significantly reduce what your loved ones receive.

### Peace of Mind

Knowing your affairs are in order and your wishes will be respected gives you and your family invaluable peace of mind.

### Protect Your Investment

You’ve invested time and money into your property. Proper estate planning ensures it benefits those you care about most.

### Avoid Family Conflict

Clear, legally binding instructions prevent disputes and ensure fairness among beneficiaries.

### Tax Efficiency

Strategic planning can significantly reduce inheritance tax, care home fees, and probate costs.

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## What is a Will?

A Will is a legal document that sets out your wishes for what happens to your estate (property, money, and possessions) after you die. It allows you to:

– Decide who inherits your property and assets

– Appoint guardians for children under 18

– Choose executors to carry out your wishes

– Make specific gifts to people or charities

– Specify funeral arrangements

– Minimize inheritance tax liability

**Without a Will, the law decides who gets what – and it might not be who you’d choose.**

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## What Happens if You Die Without a Will?

This is called dying “intestate” and follows rigid legal rules:

### If You’re Married/Civil Partnership With Children:

– Spouse gets first £322,000 plus personal possessions

– Remaining estate split 50/50 between spouse and children

– **Your partner may not inherit everything**

### If You’re Unmarried Partners (Cohabiting):

– **Your partner inherits nothing automatically**

– Everything goes to children or other relatives

– Property may need to be sold

### If You Have No Close Family:

– Assets go to distant relatives

– If none exist, estate goes to the Crown

– **Your wishes are completely ignored**

### Additional Problems Without a Will:

– Lengthy delays (months or years)

– Higher legal costs

– Family disputes and conflict

– Wrong people inherit

– No control over property disposal

– Care for children not specified

– Unmarried partners left with nothing

**Don’t leave it to chance. A Will ensures your wishes are followed.**

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## Types of Wills We Arrange

### Single Will

For one person to set out their wishes independently.

**Cost:** £150-£250  

**Best for:** Single people, widows/widowers, or those with separate assets

### Mirror Wills (for Couples)

Identical Wills for partners where each leaves everything to the other, then to children or other beneficiaries.

**Cost:** £250-£400 (pair)  

**Best for:** Married couples or civil partners with aligned wishes

### Property Protection Will

Includes Trust provisions to protect property from care home fees while ensuring your spouse can continue living there.

**Cost:** £400-£600  

**Best for:** Homeowners concerned about care costs

### Severance of Tenancy & Protective Will

Converts joint tenancy to tenancy in common, then uses Trust to protect each person’s share.

**Cost:** £500-£750  

**Best for:** Property protection for second marriages or blended families

### Complex Estate Will

For larger estates, multiple properties, business ownership, or complicated family situations.

**Cost:** £600-£1,000+  

**Best for:** Property portfolios, business owners, or complex families

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## What is a Trust?

A Trust is a legal arrangement where assets (like property) are managed by trustees for the benefit of beneficiaries. Trusts can:

– Protect property from care home fees

– Ensure assets pass to intended beneficiaries

– Ring-fence property shares

– Provide for vulnerable family members

– Reduce inheritance tax

– Protect children’s inheritance

– Control when and how assets are distributed

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## Types of Trusts for Property Owners

### Property Protection Trust

Built into your Will to protect your share of property from being used to pay for care home fees, while allowing your spouse to continue living there.

**How it works:**

– Your property share goes into Trust on your death

– Spouse has right to live there for life

– Trust protected from care fees means testing

– Children ultimately inherit the property

**Benefits:**

– Care fees only assessed on survivor’s half

– Property protected for children

– Spouse has lifetime security

– Significant potential savings

**Cost:** Included in Property Protection Will

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### Life Interest Trust

Allows someone (usually spouse) to benefit from an asset during their lifetime, with ultimate beneficiaries receiving it after.

**Example:**

– Spouse can live in property for life

– After their death, property goes to your children

– Prevents spouse’s new partner inheriting

– Protects children from previous marriages

**Cost:** £500-£800

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### Discretionary Trust

Trustees have flexibility to decide how assets are distributed among beneficiaries based on circumstances.

**Benefits:**

– Adaptable to changing situations

– Protects vulnerable beneficiaries

– Tax planning opportunities

– Control over immature beneficiaries

**Cost:** £600-£1,000

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### Vulnerable Person Trust

Specifically designed for beneficiaries who can’t manage money themselves (disability, addiction, bankruptcy risk).

**Features:**

– Professional trustee management

– Controlled distribution of funds

– Protection from exploitation

– Benefits means-testing protection

**Cost:** £700-£1,200

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## Protecting Your Property From Care Home Fees

### The Problem

If you need care in later life, local authorities assess your assets (including property) to determine if you must pay fees. If you have assets over £23,250, you pay full costs – potentially £50,000-£100,000 per year.

**Your property is counted in this assessment.**

### The Solution: Property Protection Trust

When the first partner dies, their share of the property goes into Trust:

**Standard Scenario (No Trust):**

– Couple jointly own £500,000 house

– First partner dies, survivor inherits everything

– Survivor needs care, has £500,000 assets

– Must sell house and pay all care fees

– Children may inherit nothing

**With Property Protection Trust:**

– Couple jointly own £500,000 house

– First partner’s £250,000 share goes into Trust

– Survivor still lives in the house

– Survivor needs care, has £250,000 assets (their half only)

– Trust protected, so only survivor’s half at risk

– House not forced to be sold

– Children protected to inherit up to £250,000

**Potential Savings: £100,000+**

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## Why Property Owners Need Wills & Trusts

### Multiple Property Owners

If you own several properties, you need clear instructions on how each is distributed.

### Unmarried Couples

Without a Will, your partner inherits nothing. The property could go to your relatives, forcing your partner from their home.

### Second Marriages/Blended Families

Ensure your children from previous relationships inherit your property share, not just your new spouse’s family.

### Buy-to-Let Landlords

Rental properties need specific handling for inheritance tax and capital gains tax efficiency.

### Remortgaging or Equity Release

If you’ve released equity, ensure remaining property value is protected and distributed correctly.

### Business Premises

If you own commercial property, business continuity planning through Trusts is essential.

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## Lasting Power of Attorney (LPA)

While not technically a Will or Trust, LPAs are crucial for property owners:

### What is an LPA?

A legal document allowing someone you trust to make decisions on your behalf if you become unable to (accident, illness, dementia).

### Types of LPA:

**Property & Financial Affairs LPA**

Manages your property, bank accounts, bills, and financial decisions.

**Health & Welfare LPA**

Makes medical treatment and care decisions on your behalf.

### Why You Need LPAs:

Without them, if you lose mental capacity:

– No one can access your bank accounts

– Property can’t be sold or remortgaged

– Bills go unpaid

– Court proceedings needed to appoint deputy (£1,000+ and 6+ months)

– Family members can’t act on your behalf

**With LPAs in place, your chosen person can immediately manage your affairs.**

**Cost:** £200-£350 per LPA (plus £82 registration fee each)

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## Inheritance Tax Planning

### Current Thresholds (2024/25):

– Nil Rate Band: £325,000 per person

– Residence Nil Rate Band: £175,000 (if leaving main home to direct descendants)

– **Combined potential:** £500,000 per person, £1 million per couple

### How Inheritance Tax Works:

Everything over your threshold is taxed at 40%.

**Example Without Planning:**

– Estate worth £800,000

– Threshold: £500,000

– Taxable: £300,000

– Tax due: £120,000

**Example With Trust Planning:**

– First death: £400,000 to Trust (no tax – under £500,000 threshold)

– Second death: £400,000 estate (no tax – under £500,000 threshold)

– Trust distributes £400,000 to children (already outside estate)

– **Tax saved: £120,000**

### Ways to Reduce Inheritance Tax:

– Property Protection Trusts

– Strategic gifting (7-year rule)

– Life insurance in Trust

– Charitable donations

– Business Property Relief (if applicable)

We can introduce you to specialists who can create a comprehensive IHT plan.

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## Why Choose AIM Mortgages for Wills & Trusts?

### Part of Your Property Journey

We’ve helped you buy your property – now help you protect it. It’s the natural next step in securing your investment.

### Property-Focused Expertise

We work with legal professionals who specialise in property-related estate planning, understanding the specific needs of homeowners and landlords.

### Coordinated Service

If you’re purchasing property through us, we can arrange your Will and Trust planning at the same time, ensuring complete protection from day one.

### Clear Fixed Fees

No hidden costs or surprises. You’ll know exactly what you’re paying before you commit.

### No Jargon

We explain everything in plain English. You’ll understand exactly what you’re signing and why it matters.

### Convenient Process

Many documents can be prepared remotely. We’ll arrange signing at a time and place convenient for you.

### Ongoing Updates

Life changes, and so should your Will. We offer regular reviews and updates when circumstances change.

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## What’s Included in Our Will Writing Service

✓ Initial consultation to understand your situation and wishes  

✓ Clear advice on the best structure for your needs  

✓ Professional Will drafting by qualified legal professionals  

✓ Plain English explanations of all clauses  

✓ Property Protection Trust provisions (if required)  

✓ Tax efficiency planning  

✓ Executor guidance  

✓ Safe storage options for your Will  

✓ Free amendments within 6 months of completion  

✓ Annual review reminders  

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## Common Questions About Wills & Trusts

**How long does it take to make a Will?**

Once we have your instructions, typically 2-3 weeks from consultation to signing.

**Can I make changes later?**

Yes. You can update your Will anytime. Minor changes use a Codicil; major changes require a new Will.

**What if I move house?**

Your Will remains valid. Just ensure your executors know where the new property deeds are kept.

**Do I need a new Will if I remarry?**

Yes! Marriage automatically revokes previous Wills unless specifically made “in contemplation of marriage.”

**Can my Will be challenged?**

Wills can be challenged, but properly drafted Wills with clear reasoning and appropriate provisions are hard to overturn.

**What happens to my mortgage when I die?**

Usually the property sale or other estate assets pay it off. Life insurance can cover this.

**Should my property be in Trust now or after I die?**

Usually after, via your Will. Transferring property into Trust during your lifetime has tax implications and may affect mortgages.

**Can I give my property to my children now?**

Legally yes, but consider: Capital Gains Tax, potential care fees implications, losing control, and children’s relationships/debts affecting it.

**What if I own property abroad?**

You may need separate Wills for foreign property. We can advise and connect you with international estate planning specialists.

**How often should I update my Will?**

Review every 3-5 years and after major life events: marriage, divorce, children born, property purchase, or significant wealth changes.

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## When to Update Your Will

You should review and possibly update your Will if:

– You get married or divorced

– You have children or grandchildren

– You buy or sell property

– You receive an inheritance

– A beneficiary or executor dies

– You move abroad

– You take out life insurance

– Your circumstances significantly change

– Tax laws change

– Your relationship with beneficiaries changes

**We offer free Will reviews to existing clients.**

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## The Cost of Not Having a Will

### Financial Costs:

– Unnecessary inheritance tax: £10,000-£100,000+

– Probate complications: £3,000-£10,000 extra legal fees

– Property sold below market value in forced sale situations

– Care fees consuming entire estate: £50,000-£200,000

### Emotional Costs:

– Family disputes and lasting rifts

– Unmarried partners left destitute

– Wrong people inheriting

– Children’s futures compromised

– Years of legal battles

### Time Costs:

– Intestacy grants take 6-12 months vs. 2-4 months with a Will

– Family left in limbo without access to funds

– Property sitting empty, deteriorating

**A Will costs £150-£600. The cost of NOT having one can be tens of thousands.**

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## Protecting Your Children’s Future

### Guardianship

If both parents die before children turn 18, who raises them? Your Will specifies guardians, preventing courts deciding.

### Trust Funds

Set conditions on when children receive inheritance:

– Age milestones (18, 21, 25, etc.)

– Education completion

– Marriage/buying first home

– Professional trustee management

### Special Needs Provision

Children with disabilities need special Trust arrangements to protect benefits and ensure lifetime care.

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## For Portfolio Landlords

If you own multiple properties, consider:

### Business Property Relief

Some furnished holiday lets and certain business premises may qualify for IHT relief.

### Incorporation Considerations

Limited company ownership affects estate planning differently than personal ownership.

### Staged Inheritance

Consider leaving properties to different beneficiaries or at different times for tax efficiency.

### Loan Structure

Outstanding mortgages reduce your taxable estate, but plan how these are repaid.

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## Ready to Protect What You’ve Built?

Don’t leave your property and loved ones’ future to chance. Let us help you create a comprehensive estate plan that protects your property investment and provides for your family.

**Contact AIM Mortgages Today:**

– **Call us:** [Your Phone Number]

– **Email:** [Your Email]

– **Book online:** [Link to Booking System]

**Free Initial Wills & Trusts Consultation**

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## Complete Property Protection Service

At AIM Mortgages, we provide end-to-end property services:

✓ **Residential Mortgages** – Get you into the property  

✓ **Conveyancing** – Legal work to own the property  

✓ **Surveys** – Understand the property’s condition  

✓ **Wills & Trusts** – Protect the property for your family  

Everything you need under one roof – from purchase to protection.

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## Quick Will Checklist

Before your Will consultation, think about:

– [ ] Who should inherit your property?

– [ ] Who should look after children under 18?

– [ ] Who should be executors?

– [ ] Any specific gifts (jewelry, collections, money amounts)?

– [ ] Funeral wishes?

– [ ] Charitable donations?

– [ ] Anyone you specifically want to exclude?

– [ ] Any property overseas?

– [ ] Business interests?

– [ ] Digital assets and accounts?

Don’t worry if you’re unsure – we’ll guide you through everything.

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**AIM Mortgages – Your One-Stop Shop for all Property Needs**

*This information is for guidance only and does not constitute legal advice. All Wills and Trusts are prepared by qualified legal professionals. We recommend regular reviews to ensure documents remain current with your wishes and legal requirements.*