Wills and estate planning
The importance of making a will
Compensation from the Infected Blood Compensation Scheme receives special tax treatment. You can find out more about paying IHT on your compensation. This special tax treatment allows your estate to pass to your chosen loved ones when you die without paying Inheritance Tax (IHT). If you do not have a will in place your chosen loved ones might not receive the full financial benefit you wanted them to have.
What is a will?
A will is a legal document that lets you decide what happens to your money, property and possessions when you die. Without a will, the law decides who gets your money, which might not match your wishes. This is especially important if you are in a relationship or cohabiting but not married.
Unmarried couples do not have an automatic right to inherit their partner’s estate, regardless of the length of their relationship or whether they have children.
A mirror will (a will that mirrors your partner’s) may not be suitable for IBCA compensation payments. You should work with a financial adviser who understands the tax rules of the scheme if you have a mirror will in place.
Who needs a will?
Everybody should put a will in place for peace of mind, but you really need one if:
- there are big changes to your financial situation (like your compensation payment)
- you have dependent children
- you are not married to your partner
- you are worried about Inheritance Tax
- you got married, divorced, remarried or have children
- you have specific funeral wishes
- you own property overseas with someone else
- one of the people you’ve chosen to leave money to has died
How to write a will
There are several ways to write your will.
- You can write your will yourself, but you should only consider doing this if the will is going to be straightforward. You can find out more information about making a will on GOV.UK.
- You can use the services of a low-cost will writer. Most will writers are not regulated, which means if something goes wrong with your will you cannot make a legal complaint or claim compensation.
- You can use a solicitor. Solicitors are regulated and can understand special tax treatment of compensation scheme payments. This means if something goes wrong with your will you can make a legal complaint or claim compensation. You should consider using a solicitor if your will might not be straightforward. You can find a solicitor online.
If you already have a will in place, check the details are up to date. This will make sure your estate is passed to your loved ones according to your wishes, and can help prevent any tax liabilities.
What is a lasting power of attorney (LPA)?
An LPA allows you to choose someone you trust to make decisions for you if you are ever unable to make them yourself. This can include decisions about your money, your property, or your health care.
No one should ever pressure you into making or changing a will, or into giving someone the power to manage your finances. These decisions should be made freely, in your own time, and based on what feels right for you. For further support, you can contact safeguarding@ibca.org.uk.
If you do not want to make an LPA yourself you can use the services of a solicitor. You may find it reassuring to choose a solicitor that is a member of the Society of Trust and Estate Practitioners or the Association of Lifetime Lawyers.
How to create a lasting power of attorney (LPA)
You can make an LPA yourself online on GOV.UK.
You must register your LPA with the Office of Public Guardian (OPG). If you do not register your LPA it will not be valid.
Keeping all of your important information in one place
It is important you keep a record of all of your legal information. If you receive physical documentation, you should store this safely.