Carer Talk: “Tax, Care and Toy Boys” with Co-op Estate Planning

For our February Carer Talk, Young at Heart ULO welcomed Claire Hall from the Co-op Estate Planning team for a lively and practical session titled “Tax, Care and Toy Boys”.

It was an open, down-to-earth conversation about the kinds of questions many families carry quietly — often until a crisis forces decisions. Claire focused on the planning tools that can help people protect their wishes, reduce avoidable stress for family, and understand how decisions made today can affect what happens later.

Below is an overview of what was covered.

1) What estate planning actually means

Claire began by demystifying the term “estate planning”. In simple terms, it is planning for:

• what happens to money, property and possessions when someone dies
• who can make decisions if someone loses capacity
• how to reduce the risk of unintended outcomes, such as disputes or assets going to the wrong place

For many people, the starting point is a Will and Lasting Power of Attorney (LPA), but the session highlighted that planning is rarely one-size-fits-all.

2) Wills: not just having one — having one that’s fit for purpose

A repeated theme was that many people have a Will, but:

• it may be out of date
• it may be too basic for the family situation
• it may not reflect later changes (new relationships, step-families, property changes, caring responsibilities)

Claire recommended reviewing Wills every 3–5 years (or sooner if circumstances change), rather than assuming an older Will still does what you want.

She also explained that a Will is an instruction document — it only works if it clearly sets out what you want, and if it is legally valid.

Important point: marriage can affect Wills. In many cases, getting married can invalidate an existing Will unless it has been written with that in mind, so it’s worth checking if this applies.

3) Inheritance Tax: key thresholds and gifting basics

Claire gave a helpful overview of Inheritance Tax and the main allowances:

• £325,000 nil-rate band per person
• £175,000 additional allowance (residence nil-rate band) when passing a home to direct descendants
• Allowances can be combined between spouses or civil partners, potentially reaching up to £1 million in total
• Inheritance Tax is typically charged at 40% on the value above allowances

She also touched on gifting:

• Up to £3,000 per year can be gifted without affecting inheritance tax
• Larger gifts may still count towards the estate if the person dies within seven years

Keeping a simple record of gifts was recommended to make things easier for executors later on.

4) Care fees: understanding how assets may be assessed

Claire addressed one of the biggest concerns for families — the cost of care.

• Local care costs were discussed at around £1,200–£2,000 per week, depending on the setting
• In England, if someone has over £23,250 in capital, they are usually expected to fund their own care
• Below £14,250, capital is generally not counted in the same way in financial assessments

A key clarification:

• If a partner remains living in the home, the property is not normally included in the same way during care fee assessments

Claire also highlighted that transferring property into children’s names to avoid care costs can create serious risks and may still be challenged.

5) “Sideways disinheritance”: when things don’t go where you expected

This part of the talk explored what can happen if circumstances change after someone dies.

For example:

• Everything is left to a spouse or partner
• The surviving partner later remarries or forms a new relationship
• The estate may then pass to a new partner or different family

This means children from the original relationship may receive less — or nothing at all.

The key message was not about preventing people from moving on, but about ensuring that planning reflects long-term intentions.

6) Trust planning: protecting a share while still supporting a partner

Claire explained that some families use trust-based Wills to balance two priorities:

• allowing a partner to continue living in the home
• protecting a portion of the estate for children

This can involve owning property as tenants in common, where each person owns a defined share rather than the whole passing automatically.

In some cases, this can help ensure that part of the estate is preserved for future generations, while still supporting the surviving partner.

7) Lasting Power of Attorney: why it matters

Claire highlighted that being married does not automatically give someone the legal authority to make decisions on behalf of their partner.

Two types of LPA were discussed:

• Property and Financial Affairs LPA
• Health and Welfare LPA

Without these in place, families may need to apply to the Court of Protection, which can be time-consuming and costly.

LPAs must be set up while the person still has capacity, which is why early planning is important.

Practical takeaway: making things easier for others

A strong theme throughout the session was about reducing stress for the people left dealing with everything.

Claire encouraged people to keep clear records of:

• bank accounts and pensions
• key documents and where they are stored
• contacts and important information

This can make a significant difference for executors and family members.

Further Information:

Claire offers consultations for those who would like to review their arrangements or sense-check existing plans. If you would like further information, please speak to Alison at Young at Heart ULO.

Thank you

Thank you to Claire Hall and the Co-op Estate Planning team for delivering an informative and thought-provoking session, and to everyone who attended and contributed.

Note: This blog provides an overview of a community talk and does not constitute legal or financial advice. Individual circumstances vary, and professional advice should be sought where appropriate.