Why landlords must write a Will

Lawpack on January 12, 2021

If you’re a landlord, you probably think it’s far too morbid to be thinking about writing a Will.

But due to the high value of a landlord’s property investments it’s more important than ever that landlords think about what will happen to their assets after their death.

Why landlords need a Will

If you haven’t thought about writing a Will, then you’re not alone. 7 out of 10 people haven’t made a Will.

Many presume that their property and possessions will automatically pass to their spouse/partner when they die, but if you die without writing a Will (legally termed as ‘dying intestate’), your estate will be distributed according to the law of intestacy and this may not be according to your wishes.

Find out why our outdated intestacy laws mean you should be making a Will now.

When a landlord dies intestate all the landlord’s buy to let properties are divided between their spouse and surviving blood relatives, according to the law of intestacy.

So if you haven’t got round to writing a Will, there’s a chance that your spouse will not receive your estate in total. And if you’re not married and living together with a partner, your partner may not receive anything of your estate as cohabitant partners are not automatically recognised in intestacy law.

Find out how cohabitant partners are dealt with under the law of intestacy.

Should a landlord die suddenly without writing a Will, the administering of the landlord’s estate and buy to let property portfolio can be complicated and may be contested. Sorting out a landlord’s estate after death can be a drawn and painful process for the landlord’s relatives and loved ones.

By writing a Will landlords can legally state who they want to directly receive their assets, including their buy to let properties, following their death and reduce any confusion, conflict and legal costs for their families.

What should be included in a landlord’s Will?

Before a landlord writes a will, it’s always a good idea for a landlord to think about what they want included in their will. A landlord should consider the following:

  • How much money and what property and possessions a landlord has.
  • Who will benefit from the landlord’s Will?
  • Who should look after any children under the age of 18?
  • Who is going to be appointed as an executor to sort out the landlord’s estate and carry out a landlord’s wishes after their death?
Does a landlord need a solicitor to write a Will?

The simple answer is, no. One in five of us write a Will ourselves. Lawpack has helped over one million people to write their Wills with our bestselling DIY Will Kit. The Kit includes template Will forms plus an expert guidance manual, written by a solicitor, which guides you through the process of completing and signing your Will form.

What happens after a landlord has made a Will

Landlords should remember that once they have written a will, it’s vital that they store it in a safe place and tell their executor, close friend or relative where it is. You can store your Will safely and securely with Lawpack’s Will Storage Service.

Landlords must keep their Will up to date. Landlords should review their Will every five years and make a new Will if any major changes occur; for example, they separate, get married or divorce, have a child or move house.

Find out more on when you should revise your Will.

What is a Mirror Will?

Lawpack on January 8, 2021

The term Mirror Wills is used for Wills made by spouses or unmarried partners where the wishes of each person reflects the wishes of the other. They are very common for people who are married or in a relationship who will usually want to make similar provisions in their Wills.  This usually means that they both leave the bulk of their property and assets to each other. Mirror Wills are individual Wills made by each person; they are not a ‘joint’ Will.

The lawyer-approved Lawpack Mirror Wills Kit for couples provides Mirror Will forms that have been drafted to make the creation of Mirror Wills a straightforward process. It is assumed that you will wish to name your spouse or partner as your main beneficiary and name an alternative beneficiary if he or she predeceases you, but it is possible to alter the Will Form to make different provision.

Mirror Wills vs Mutual Wills

It is possible to create a so-called ‘Mutual Will’ agreement where you and your spouse or partner not only wish to make similar provision but wish both of you to be unable to make any other form of provision. Such agreements are not covered by the Lawpack Mirror Wills Kit; they are not common and can cause significant problems. If you do think you want to enter into a Mutual Will agreement then we strongly suggest that you consult a solicitor.

Mirror Wills pros and cons

Mirror Wills are relatively easy, quick and economical to set up, as both spouse or partners make similar wishes. For convenience the Lawpack Mirror Wills Kit is drafted to provide for legacies and gifts that can apply whoever dies first, and for legacies and gifts that will apply only on the death of the second. For example, you may want to give sentimental items such as watches or jewellery to children whoever dies first, but only want a gift of the house to take effect when you have both died.

However either person can make different provisions in their Will; this can be a drawback as there is nothing to stop one person changing their Will without the other’s knowledge.

Can you change a Mirror Will after one person dies?

Yes.  Mirror Wills created by a husband and wife or by partners are not legally connected. There is nothing stopping either person changing their Will while their spouse/partner is alive or after their death.

Can a Mirror Will be changed after death?

Like any other Will, a Mirror Will cannot itself be changed or rewritten after the testator’s death. But the effect of the Will can be changed, so that beneficiaries can change their own entitlement under the Will. This is done by what’s called a deed of variation. Changes to an estate by a deed of variation may be useful in a range of circumstances. For example, a beneficiary may not want or need their share and would like it to go to charity, or there could also be tax-efficient reasons for changing the distribution of an estate.

How to guide on nanny employment contracts

Lawpack on June 5, 2020

Parenting has always been toted as the most honourable job in the world but that doesn’t mean you have to go it alone when children and babies prove demanding or complicate your ability to pursue your career.

It is for this reason that many parents take the decision to hire a nanny to look after their children, either to allow them to stay in work or to give them a helping hand with the daily chores involved in childcare.

Get it in writing

When considering hiring a nanny, it is paramount to draw up a nanny employment contract to ensure a mutual agreement is stuck between you, the employee, and your nanny, who is entitled to their employee rights.

When you first take the decision to hire a nanny, you will want to decide whether they will be live-in, providing more round-the-clock care, or live-out, who are only there during the hours you specify.

Keep in mind that as a small employer, you must legally provide a written statement, such as a nanny contract, which outlines the main terms and conditions of employment for your nanny or domestic helper.

This will ensure that you meet at least the minimum standards of employment, which should help you to build a positive relationship with your nanny as they come to understand that you value their rights, as well as setting out provisions for mutual benefit.

Tax and pay

Now that you have become an employer, you will be responsible for ensuring that your nanny’s tax contributions are paid, which will first require you to contact your local tax office to register as a new employer.

It is also up to you to make sure that your nanny’s national insurance contributions are paid on any earnings over the tax threshold.

You will be obliged to pay your nanny the national minimum wage.

Hours and leave

It is worth mentioning at this point that you are not legally allowed to insist that your nanny works more than 48 hours per week; however, you can agree together for them to work longer hours in a clause to be included in the nanny contract.

As an employee, your nanny has a right to receive a payslip outlining how much they have earned for that period, as well as detailing where tax deductions and national insurance payments have been made.

Regardless of whether you hire your nanny on a part or full time basis, they are entitled to four weeks’ paid leave per annum and it is up to you to negotiate holidays with your employee.

The nanny contract will also set out the terms for notice of termination, which is one week’s notice in the first month and typically a full month’s notice thereafter, which applies to both employer and employee.

If your nanny becomes pregnant while in the role, then just like employees in any other position, they have full maternity rights that you must adhere to, including maternity leave and pay.

For more information on nanny contracts or to download a nanny contract template, see Lawpack’s Nanny Employment Contract.

Health and safety compliance vital for employers

Lawpack on June 3, 2020

Health and safety has always been an important consideration for employers. Workplace health and safety laws can be strict and failure to comply could have devastating consequences, personally as well as professionally.

But according to some experts, today’s “compensation culture” means compliance with health and safety legislation is more vital than ever and anyone hiring other people to work for them needs to be fully aware of their rights and responsibilities.

Laying the blame

Employers have legal obligations to ensure a safe and healthy workplace and if an accident does occur at work, an employee has every right to question how and why. If they have hurt or injured themselves as a result of something their employer has or has not done, or something they have not provided, they can seek redress.

But Stephen Leigh, an advisor at Real Compensation, believes that today legal action is being taken for “ridiculous, small things that an employee could not envisage happening”.

He points out: “An increasing amount of organisations are more aware that if something happens then their employees are going to be putting in a claim.”

With this in mind, having a sound knowledge of health and safety law and doing everything possible to act in accordance with them is absolutely essential if employers want to avoid litigation.

Legal battles

Research from the insurance firm RSA reveals that almost 12 million people have been injured at work or suffered work-related health problems in the last year. Over half of these people sued their employer.

The most common problems experienced by workers were back pain and stress, which accounted for half of all illness and injury cases.

Colin Bradbury, underwriting director at RSA, said: “This highlights the importance of risk management in safeguarding employees’ health and ensuring a productive workplace.”

According to Stephen Leigh, it is possible that some employers underestimated the risk of being sued by their workers, perhaps because they do not have a full understanding of what is required of them or of the rights of their employees.

Preventative action

Mr Leigh insists employers must do “absolutely everything in their power” to comply with health and safety laws and to ensure that their staff comply as well, because employees also have responsibilities in terms of following the health and safety guidelines and procedures put in place by their employer for their benefit.

“It’s basically just complying to the health and safety regulations and ensuring that they are doing everything they can to avoid negligence. It’s just the case across the board really,” he states.

Training staff is essential, especially where they are required to handle potentially dangerous equipment, as employers can be held responsible if an accident happens as a result of failure to provide adequate instruction to mitigate risk, he adds.

Employment law can be a minefield, but taking the time to get to grips with it could save time, money and distress for otherwise attentive employers who want to do the best they can for their business and their staff.

Related articles

How understanding balance sheets is a key to success

Lawpack on June 2, 2020

You can have the most fantastic business with a wonderful product that people are desperate to buy, but if you fail to get the financial side of things right you are doomed to fail.

That is a simple fact of business, with those who struggle to get their heads around the numbers often among the first to hit the rocks.

Running a tight ship is the key to enjoying a profitable existence, meaning you must keep a close eye on exactly what is going out and into a business.

With this in mind, balance sheets are likely to be your friend, as they give you the opportunity to identify exactly where your strengths and weaknesses lie.

Of course, it’s not just about being able to read and understand a balance sheet, it’s also important that you are able to enter the correct information on the document in the first place.

This will ensure that any statistics, data and trends you identify as being particularly crucial are reliable and accurate.

What is a balance sheet?

A balance sheet is a record of exactly what a business has in assets and what it owes to others.

Everything from stock and equipment to supplier debts should be included to give an overall picture of the state of a firm.

The balance sheet also reveals exactly what an organisation’s cash to debt ratio is – something that is known to be of huge importance, particularly in these difficult economic times.

If a firm is becoming too reliant on credit, the balance sheet should identify this is the case.

Why do I need one?

As well as being able to keep your finger on the pulse of operations, the balance sheet is a useful exhibit for you to showcase when it comes to trying for a bank loan or attempting to attract new investors.

A positive and concise balance sheet should make it much easier for people to pump money into your company.

With all this in mind, what you need to make sure you can do above all else is understand your sheet.

How do I understand a balance sheet?

It tends to be broken down into numerous columns, with these representing factors such as cash reserves, fixed assets, borrowings and debts to be call in.

You can even prioritise certain columns if this makes it easier to evaluate.

Handily, it should give an indicator of whether it would be easy to turn certain assets into cash, i.e. the rate of liquidity a company is operating under.

Again, this is a key issue when it comes to assessing the overall financial health of a business and where it stands at a particular moment in its development.

If you understand the balance sheet comprehensively, you will find it much easier to manage your firm and make the changes that are needed to ensure success.

For instance, you could decide to sell assets if you need to raise cash, while you might forecast that you will eventually end up with too many long-term creditors and subsequently look to ensure some pay up in a shorter time frame.

Expert advice

Written by a chartered accountant, Lawpack’s guide Understanding Accounts Made Easy shows you how to break down a Balance Sheet in a way that is easy to understand, plus it includes an example on how to create one.

Related articles

 

Published on: August 30, 2012

Who can start probate when someone dies?

Lawpack on May 21, 2020

When a person dies, their estate must be administered after their death. Someone must collect the assets, pay any debts, and distribute any inheritance to the beneficiaries.

Many people assume that the ‘next of kin’ will administer probate, but this is often not the case.

If someone has left a Will, it’s the executor (or executors) named in the Will who will be responsible for carrying out the deceased’s wishes.

If the deceased didn’t leave a Will, they are said to have died ‘intestate’ and their estate will be distributed in accordance with the laws of intestacy, which also determine who should be appointed as administrator, to administer the estate.

Either way, it’s an executor or administrator who is responsible for dealing with probate and the administration of the estate.

In probate terms, both executors and administrators are called ‘personal representatives’.

What are the duties of an executor?

The duties of an executor (or administrator) are to:

  • Check and understand the Will
  • Obtain details of all the assets and liabilities
  • Complete an application for the grant of probate or confirmation
  • Fill in Inland Revenue forms
  • Collect in the assets
  • Pay Inheritance, Income and Capital Gains Tax
  • Pay liabilities and expenses of the estate
  • Pay or transfer legacies
  • Distribute the residuary estate
  • Prepare estate accounts.

 

Be careful

The task of administering an estate involves a considerable amount of work and the decision to act as executor or administrator shouldn’t be taken lightly.

Executors or administrators are accountable to HM Revenue & Customs and to the beneficiaries. The process of administering an estate can be quite time-consuming and sometimes daunting.

But don’t worry. You can do probate yourself. Lawpack’s DIY Probate Kit has been written by probate experts to help guide you through the process.

Read our article to find out if you can do probate yourself.

Other information

 

 

Small claims: do you have a winning case?

Lawpack on May 19, 2020

Before you go to a small claim court you must resolve three issues:

1. Can you win your small claim case?
2. Can you collect on your judgment?
3. Can the small claim court hear your case?

Can you win your small claim case?

What makes a winning case? In short: liability.

You won’t get any money from the person you are claiming from (called a ‘defendant’) until you prove that the defendant is legally responsible for your loss. This means that you must prove their liability. Your loss isn’t enough to make a winning small claim case, it must also be the other side’s legal fault. You must state facts to the judge to show that the defendant should be held legally accountable.

The judge will listen to your evidence and decide whether you have a legal case (i.e. that you have a legal right to claim compensation from your debtor or the wrongdoer). You must establish the facts in as favourable a way as possible and the judge will rule on the legal position. If you understand some of the principles of the relevant law, this will help with your preparation and can ensure that your arguments are more easily understood and appreciated by the judge. This should lead to a better chance of success.

Look at the examples below:

  • Contract dispute
    A valid contract signed by both parties has been broken by the other side and you have suffered monetary loss (e.g. an invoice has not been paid). The contract does not have to be a written one. It can be a verbal agreement.
  • Negligence
    Negligence means a wrongful act or a failure to act has occurred; for example, someone cuts down a tree which falls on your car. You are entitled to claim compensation for the cost of putting right the damage to your car.
  • Personal injury
    The intentional or negligent behaviour of the defendant has caused you to suffer personal injury (e.g. a road accident).
  • Defective product
    You suffered loss due to a defective product and have the right of compensation from the person who supplied it and/or the manufacturer.
  • Warranties
    A written or implied warranty or guarantee has been breached and you have suffered a monetary loss.
  • Consumer claim
    If you are an individual and bought goods or services from a business that proved to be defective or wrong, your case may be covered by consumer legislation such as the Sale of Goods and Services Acts. These have specific rules relating to such claims that make it easier to prove them. For more information visit www.consumerdirect.gov.uk.

It’s most important that you can show that the defendant’s wrongful act caused you actual injury which can be translated into a monetary recovery. Wrongdoing without harm is not usually compensatable.

Can you collect on your judgment?

Even if you win your small claim case, your victory is worthless unless you can enforce the judgment. If your defendant is genuinely unable to pay, they may not be worth chasing and they may choose not to even defend themselves.

Unfortunately, there’s no simple way to investigate the finances of a defendant unless you are prepared to pay for an asset search, but this is seldom cost-effective in a small claims case. At best you can only make casual enquiries to learn what you can about the defendant. You may find that they have many more creditors, some of whom hold judgments ahead of yours.

It’s important to be practical. It makes no more sense to waste valuable time, effort and court costs chasing an uncollectable debt than it does suing on a financially negligible small claim.

The Small Claims Track only makes sense when you have a reasonable chance of winning and collecting enough money to make the exercise worthwhile.

Can the small claim court hear your case?

The small claim courts can only hear cases where the law of England and Wales apply. If you purchased goods abroad, the law which applies is nearly always the law of the country in which the purchase was made. Sometimes the contract will state which law applies. For example, if you purchase computer software over the internet, the contract will state which law applies. This may change in the future because the UK is a member of the Euopean Union.

Related Links:

  • Making a Money Claim Online – An Essential Guide

10 things you must do after a divorce

Lawpack on May 19, 2020

From Lawpack’s Separation & DIY Divorce Kit

After investing all your emotional (and financial) energies into a painful divorce for so long, life can feel very empty when it’s finally all over. Family lawyer Philippa Pearson gives her ten tips on where to channel all those energies after the divorce has been settled.

1. Make a Will

This is often overlooked in the rush to get away from all things legal after a divorce, but it can be absolutely crucial and if you can’t bear the thought of seeing another lawyer, write a will with Lawpack! Divorce can affect any will you already have, and so you’ll need to make a will again. It’s particularly important to write a will if you have started a new significant relationship, since the last thing you want to leave behind is a battle over your estate between your ‘first’ and ‘second’ family. If you leave really clear provision in a will that caters for them all, you should avoid this future heartache.

Find out more about making a will and divorce…

2. Change your name by deed poll.

This obviously applies if you’re a woman and you want to leave your married name behind after a divorce. The easiest way to change it is to enter into a change of name deed, or deed poll as it is often known as. A simple but legally valid change of name deed can be found here. All you need do is sign and your name is changed!

3. Put your children first.

However much you will have tried to protect them during the divorce, your children will have been aware of the stress and tension the divorce has put on you and your ex. Let them know that Mummy and Daddy have resolved their differences (with or without the nice Judge) and that they will try not to argue anymore. Spend lots of time with your children.

4. Allow your ex to collect their things in a calm and peaceful fashion.

Divide up the household contents as soon as possible after the divorce, but avoid the temptation to crease up all your ex’s clothes in bin liners and give them odd cups and saucers. Rise above the difficulties you have had and, if possible, do a little act of kindness or two that they won’t expect to demonstrate that the rancour is all over for you (even if you’re not quite sure it is!).

5. Close any joint bank and savings accounts.

Also, destroy all joint credit and charge cards, or surrender them to the credit card company (if you didn’t do this at separation) and notify them that you no longer have responsibility for new debts of your former spouse. Finally, open new accounts in your name alone and with a change of address, if applicable.

6. Don’t be put off relationships.

Remember that the odds are in your favour that you will meet a significant other within three years. Get back into the dating scene. Let your friends know that you are free for dinner and join those dating agencies. You could even return to the clubbing scene.

7. Ensure that your financial order is actually put into effect.

Obtaining the formal divorce court order isn’t in itself enough, particularly for such things as orders to transfer policies or property. The law is very strict as to how ownership of items such as these can be passed, so don’t make the mistake of thinking that the order alone is sufficient. Take legal advice to ensure that the order is properly put into effect and chase your solicitor if you think that they may have put your file away and forgotten to finish the job off properly.

8. Restyle yourself and throw a party (or lots of dinner parties).

Join that gym, get that haircut, buy that new jacket and, most importantly, have fun being the new you. Let everyone know that the bad times are over and that you want to have fun again.

9. Invest your money wisely.

Arrange to see a financial advisor to make your settlement work for you. Plan for your retirement as early as possible.

10. Go on holiday!

You will need a break and no one will be checking your expenditure now. Treat yourself – you deserve it! You have just been through one of life’s most difficult and stressful situations and you have survived. Recharge those batteries in the best way you know how – lie on a beach, sip cocktails, climb mountains or even go white water rafting…the choice is all yours!

Further information

Make your own will using Lawpack’s Lawpack’s can help you to handle your own divorce and save legal fees.

Related Products:

Our Fixed-Price Divorce Services:

  • DIY Divorce Service
  • DIY Divorce & Consent Order Service
  • DIY Consent Order Service
  • Managed Divorce Service
  • Managed Consent Order Service
  • Managed Divorce & Consent Order Service

What is probate?

Lawpack on May 19, 2020

‘Probate’ (or ‘confirmation’ in Scotland) is a term frequently used when someone talks about applying for the right to deal with the affairs of a person who has died.

Probate is sometimes called ‘administering the estate’ as after someone has died, their money, property and belongings need to be dealt with and administered to beneficiaries.

Probate is needed whether or not there is a Will and, due to the possibility of fraud, probate should start as soon as possible after the death.

To administer the estate, the people who are doing so (known as executors or administrators) may need to obtain a court order (known as a ‘grant of probate’ in England & Wales or a ‘confirmation’ in Scotland) to legally gain access to the assets of the estate so that they can carry out the wishes of the person who has died.

When a grant of probate is needed

A grant or confirmation may be required depending on the size of the deceased’s estate and the kinds of assets in it.

Normally, a grant or confirmation is needed where the value of the deceased’s estate (after paying the funeral account) exceeds £5,000.

These days, banks and building societies impose their own discretionary limit upon when they require sight of a grant or confirmation. They will often release small amounts of money on receipt of a Registrar’s death certificate.

The grant or confirmation vests authority in the personal representatives to deal with the estate.

Find out more on when a ‘grant of probate is required.

How long does probate take?

Probate is a complex and time-consuming process. The length of probate depends on each individual case and the size of the deceased’s estate.

For an average estate, probate takes between six to nine months from start to completion and this period includes the forms being submitted to the Probate Registry, the grant of probate being issued and payments being made to the beneficiaries. Etibar edə biləcəyiniz sayt onlayn kazinolar .

Should professional advice be sought in administering the estate?

Lawpack’s DIY Probate Kit can help you to do probate yourself, but there are some instances when professional advice should be sought, either from a bank, Trust Corporation or solicitor.

Some signs where advice should be sought include the following:

  1. The estate is insolvent.
  2. A beneficiary cannot be contacted.
  3. Someone intends to challenge the Will.
  4. There is some question of the Will’s validity, or the Will cannot be found.
  5. Someone stands to inherit a life interest in (or in Scotland a ‘liferent’ of) the estate.
  6. Beneficiaries include children under the age of 18 (in Scotland, 16) and a trust is set up for them.
  7. The deceased owned a business or was a partner in a business or owned agricultural property.
  8. The deceased was a Name (i.e. an investor) in Lloyd’s of London insurance market.
  9. A trust is set up under the Will.

Other information

DIY Probate: What to do if there isn’t a Will

Lawpack on May 19, 2020

When someone dies and they haven’t left a Will, they are said to have died ‘intestate’ and the estate is distributed in accordance with the rules of intestacy.  When this happens, the law sets out who should deal with their affairs and who should inherit their estate (property, personal possessions and money).

Who can deal with the deceased person’s affairs?

Many people assume that the ‘next of kin’ will handle the administration, but if the deceased dies without a Will the rules of intestacy will determine who should be appointed as administrator, to administer the estate.

When there is no Will, the person who deals with the deceased’s estate are called ‘administrators’ in England & Wales and ‘executors-dative’ in Scotland.

How are administrators appointed?

In England and Wales, when there is no Will, administrators are appointed in the following order of priority:

  1. the deceased’s spouse;
  2. any child of the deceased and any issue of a child who died before the deceased;
  3. the parents of the deceased;
  4. brothers and sisters of the whole blood of the deceased and the issue of any who died before the deceased;
  5. brothers and sisters of the half blood of the deceased and the issue of any who died before the deceased;
  6. grandparents of the deceased;
  7. uncles and aunts of the whole blood and the issue of any who died before the deceased;
  8. uncles and aunts of the half blood and the issue of any who died before the deceased.

In England and Wales, the maximum number of administrators is four (whether there is a Will or the person died intestate.)

How are executors-dative appointed?

Where there is no Will, the order of priority to be appointed executor-dative in Scotland is as follows:

  1. the person(s) entitled to the residue of the estate;
  2. any one of the next of kin or heirs on intestacy (if there is a surviving spouse, they would normally be preferred and would be exclusively entitled where the value of the deceased’s estate is less than the spouse’s ‘prior rights’ ;
  3. creditors; or
  4. specific legatees.

How to obtain a grant of probate when there is no Will

It’s not until the administrators receive a grant of probate that they have the authority to administer the deceased’s estate.

If there isn’t a Will, the grant of probate is called a ‘grant of letters of administration’ and in Scotland a ‘confirmation’.

To obtain a grant of letters of administration in England & Wales, you need to apply to the Probate Registry. In Scotland, you can apply for confirmation at the Sheriff Court in the area where the deceased was domiciled at death.

You can apply for a grant of probate in three ways:

  1. Do probate yourself: Lawpack’s DIY Probate Kit provides you with expert guidance and probate forms so you can do probate yourself.
  2. Get help from a probate company.
  3. Use a solicitor.

The grant of probate provides proof to building societies, banks and other organisations that you have the authority to access and distribute funds.

Note: If Inheritance Tax is due on the deceased’s estate, some or all of this must be paid before a grant of probate will be issued.

 

Other information