Making a will in Scotland: What it covers, who can help, and how much it will cost
In a social media post last year, comedian Janey Godley shared that she was ‘sorting out her will’ and ‘clearing out junk’ as she awaited an update on her health following treatment for cancer. Janey decided it is a good time to make sure her family is spared any additional hardships in the future, so she’s putting plans in place now, a good idea for everyone, whatever the future holds.
Putting legal plans in place means you know your wishes will be respected, your assets will be protected, and your loved ones will be provided for. Because Scotland has its own legal system, it is critical to understand the specific laws that apply to your situation. Here, Gibson Kerr summarise the key components of legal planning for your future, such as wills, powers of attorney, and estate planning
Making a will
We all know it’s a good idea to have a will in place to outline your wishes regarding the distribution of your assets after your death. It can specify how your property, finances, and possessions should be distributed among your beneficiaries. It also allows you to appoint an executor to carry out your wishes. If you die without a will, your assets may be distributed according to Scottish intestacy laws, and this may not be in line with your wishes. In Scotland, wills must be signed properly to be valid, so it’s advisable to consult a solicitor.
Appointing Power of Attorney
A power of attorney (PoA) specifies someone to legally act on your behalf, either in financial or welfare matters, should you become incapacitated. In Scotland, there are two types of POA: a continuing POA for property and financial matters and a welfare POA for healthcare decisions.
By nominating a trusted person as your attorney, you can be sure that your interests are protected in the event that you can’t make decisions due to illness or disability. Choosing a trusted friend or relative and discussing it with them is vital.
Planning your estate
Making a will is only part of estate planning. Estate planning can include a variety of approaches to managing your assets and minimising taxes payable upon your death. Trusts and lifetime gifts are two estate planning tools that can be used to safeguard your wealth for future generations.
Trusts are especially useful for ensuring that your assets are managed and distributed in accordance with your wishes. They may also provide tax advantages. Advice from an experienced solicitor or financial advisor can help you make good estate planning decisions.
Inheritance Tax:
Inheritance tax (IHT) is payable on the value of your estate when you die if it is above a certain threshold. You can help reduce the IHT liability on your estate through careful planning. Strategies include making lifetime gifts, using exemptions and reliefs, or setting up trusts.
Living Wills
Making a living will (or advance medical directive) allows you to stipulate your medical treatment preferences in the event that you’re unable to communicate your wishes. This can ensure that your own healthcare decisions align with your values and beliefs.
Whatever stage of life you’re at and whatever the future holds, getting your legal affairs in order gives you peace of mind. And it’s important to regularly review your legal documents so they reflect your current wishes and circumstances.
At Gibson Kerr, our personal law solicitors have a wealth of experience helping people get peace of mind knowing that their future is secure and their wishes will be respected. If you want to discuss legal plans for your future, get in touch for a chat.
0131 202 7516