It ringfences your compensation from your other assets. This protects your money when the DWP or local authority assess you for means-tested benefits or care fees.

A professional executor is an independent expert, usually a solicitor, who handles your estate when you die. They manage probate, debts, taxes and distributions in a fair and legally compliant way.

A will is an important legal document which governs the distribution of your estate (which is everything that you own) upon your death. If you die without making a will, you are ‘intestate’ and the law will determine who inherits your estate. It is important to seek professional legal advice when writing a will to ensure it complies with all legal requirements and can be executed with ease.

Many people believe that everything they own will automatically go to their spouse but this is not always the case. A properly drafted will sets out your wishes clearly and unambiguously

It can also deal with other matters, such as appointing guardians for any of your children under the age of 18. For clients with more valuable estates, having the correct will in place could save many thousands of pounds of inheritance tax.

If a person who died did not have a will then the person who is granted Letters of Administration is called the administrator. This is a similar role to an executor of a will.

The person who administers the deceased’s estate if they died without a will - usually a relative or friend of the deceased.

An attorney is someone who acts on behalf of another person. You can choose your attorneys. The attorney may be a member of your family, a friend or a professional person, like a solicitor or accountant.

An executor is a person named in a will who sorts out the estate of the person who has died.

Intestacy simply means someone has died without a valid will. Their estate must then be shared using the intestacy rules.

Probate without a will is called Letters of Administration. The process is very similar: you value the estate, submit the forms and wait for approval from the Probate Registry.

Probate is the word normally used to describe the process of dealing with the estate of a person who has died. In general, there are two different types of grants:

Probate - applied for if the person who died had a valid will
Letters of Administration - applied for if the person who died did not have a valid will

Section 16 gives the Court of Protection power to appoint a Deputy to make decisions for someone who lacks capacity. Deputies must follow all MCA principles and make decisions in the person’s best interests.

This happens if a person loses capacity, but they don’t have a Lasting Power of Attorney in place and decisions need to be made for them. At this point, someone (a friend, relative or professional) applies to be their deputy.

If there is a Will, executors apply for Probate.
If there is no Will, a close relative applies for Letters of Administration.
Both documents give the authority needed to deal with the estate.

They are known collectively as Grants of Representation.

You must complete and sign a Deed of Variation within two years of the date of death. After that, HMRC will not recognise it for inheritance tax purposes.

Make sure a doctor confirms the death and ask for the Medical Certificate. You can then register the death and begin the practical steps in this guide.

Secure the home, locate important documents and check whether probate is needed before selling or clearing items.

If you give someone a gift and die within 7 years, that gift may still be taxed as part of your estate. After 7 years, the gift is usually tax-free. This is why early gifting is often recommended.

Executors deal with your estate after your death until it is distributed entirely. Trustees look after money or assets held in a trust, often for many years. They can be created in the lifetime of the person who makes the trust or by their Will when they die.

The best time is now, while you have full mental capacity. You can only make an LPA while you understand what it means. Waiting until illness or injury strikes may be too late.

If the deceased did not have a will then the next of kin may have to apply for a Grant of Letters of Administration before they can deal with the estate.

If the deceased had a will then the executors may have to apply for a Grant of Probate before they can deal with the estate.

Institutions have their own procedures and requirements before releasing their deceased customers’ assets and will inform you of these when you communicate with them. Some may require a grant, some may not. This often depends on the value of the asset.

It only becomes active when you're unable to make decisions for yourself. This contrasts with a Property and Financial Affairs LPA, which can be used as soon as it's registered, with your permission.

This type of LPA only takes effect if you lose mental capacity. Your attorneys can then make decisions about medical treatment, care homes, and daily routines based on your wishes.

A Lasting Power of Attorney comes into effect after it’s registered with the Office of the Public Guardian (OPG). For Property and Financial Affairs LPAs, you can choose whether it starts immediately or only if you lose capacity. For Health and Welfare LPAs, it starts only if you lose capacity.

Both Lasting and Enduring Powers of Attorney can usually only be used by your attorneys once they are registered with the Office of the Public Guardian.

You decide. It can start as soon as it’s registered, or only if you lose capacity later on. Many people choose the first option so attorneys can help with practical tasks, like paying bills or dealing with banks, even if they’re temporarily unwell or unable to for some other reason.