Make some New Year Resolutions to protect your future and family

As we welcome 2025, it's an ideal moment to set resolutions that ensure the security of your future and the well-being of your loved ones. Consider these essential legal steps: create or update your will; establish a Lasting Power of Attorney (LPA); for cohabiting couples, consider a Living Together Agreement.

As the New Year begins, it’s a great time to set resolutions that create a fresh start. Beyond personal goals like eating healthier or exercising more, it’s important to focus on legal resolutions that can safeguard your future and the well-being of your loved ones.

Here are some crucial steps to consider, each designed to provide lasting security and peace of mind.

Create or update your will for the sake of your loved ones

Making a will is one of the most straightforward yet impactful steps you can take to protect the interests of your loved ones. A will ensures that your assets are distributed according to your wishes, preventing disputes and confusion after your death.

Why it’s crucial

If you pass away without a will, your estate is distributed according to intestacy laws. These laws may not align with your intentions and could result in your assets being distributed to distant relatives or others you might not have chosen. Worse still, close family members, such as a surviving partner or stepchildren, might be excluded entirely. This can lead to unnecessary legal battles, financial strain, and emotional stress for those you leave behind.

Avoiding common pitfalls

A will is not a one-time task. Over time, life events such as marriage, divorce, having children, or acquiring new property can make an old will obsolete. For example, remarriage typically invalidates a previous will, leaving your loved ones unprotected if you don’t update it.

Professional guidance

Although DIY wills are available, errors in drafting or execution can render them invalid. A solicitor can ensure that your will is legally binding, clearly expresses your intentions, and anticipates potential issues, such as disputes among beneficiaries. They can also advise on tax planning to minimise inheritance tax liabilities, preserving more of your wealth for your family.

Investing a little time and effort in creating or updating your will now can save your family significant stress and expense in the future.

Secure your future with a Lasting Power of Attorney (LPA)

A Lasting Power of Attorney (LPA) is an essential document that prepares you and your loved ones for the possibility of future incapacity. It grants a trusted individual or individuals the legal authority to manage your affairs if you become unable to do so due to illness, injury, or age-related conditions such as dementia.

Types of LPAs and their importance

Property and Financial Affairs LPA: This allows your chosen attorney to handle tasks such as managing your bank accounts, paying bills, or selling property on your behalf.
Health and Welfare LPA: This gives your attorney the authority to make decisions about your medical care, living arrangements, and other personal welfare matters.

An LPA doesn’t take effect immediately; it’s activated only if you lose mental capacity. This ensures that you retain control over your decisions for as long as you’re able.

Why you should act now

If you don’t have an LPA in place and lose the ability to make decisions, your family may face a lengthy and expensive process to obtain a court order allowing them to manage your affairs. This can add significant stress at an already difficult time.

Additional considerations

Creating an LPA involves more than just naming an attorney. You’ll need to think carefully about who you trust to act in your best interests and consider appointing a backup in case your first choice is unable to serve. It’s also worth discussing your wishes with your chosen attorney so they are clear about your preferences.

With the help of a solicitor, you can draft an LPA that includes all necessary safeguards to protect your interests. Acting early ensures that your loved ones are empowered to support you when it matters most.

Cohabiting couples should consider a Living Together Agreement

Millions of couples now cohabit rather than get married, but the law has not kept pace with these modern relationships. Contrary to popular belief, there is no such thing as a “common law marriage” in England and Wales. This means that unmarried couples have little to no automatic legal rights, even if they’ve lived together for many years or raised children together.

Common risks for cohabiting couples

Without legal agreements, cohabiting partners face significant vulnerabilities. For example:

If the home is in your partner’s name, you have no automatic right to stay or claim a share of its value, even if you contributed financially.
Unlike married spouses, cohabiting partners are not entitled to spousal maintenance if the relationship ends, leaving one partner potentially financially disadvantaged.
If one partner dies without a will, the surviving partner has no automatic right to inherit, regardless of the length of the relationship.

How a Living Together Agreement helps

A living together agreement is a legally binding document that outlines how assets, debts, and responsibilities will be divided if the relationship ends. It can also specify how day-to-day finances, such as household bills and savings contributions, will be managed during the relationship.

Creating an agreement isn’t just about planning for the worst. Many couples find that the process strengthens their relationship by fostering open communication about financial and personal expectations.

Additional legal steps

In addition to a living together agreement, it’s wise for cohabiting couples to create wills to ensure their partner is protected in the event of death. You might also consider taking out life insurance policies or establishing a joint tenancy if you own property together.

Taking these steps provides clarity, fairness, and security, ensuring that both partners are protected regardless of what the future holds.

Take control of your future

This year, go beyond the usual resolutions and focus on safeguarding your future and your family. By creating or updating your will, setting up an LPA, and addressing cohabitation rights with legal agreements, you can achieve long-term peace of mind and security.

If you need help with any of these resolutions, contact us for expert guidance tailored to your unique circumstances on 020 8290 0333 or email info@judge-priestley.co.uk

Make 2025 the year you take control of your future!