Two new documents have been created that came into affect from 1st October 2007. These replace the Enduring Power of Attorney (EPA) and this document cannot now be created, though those created before 1st October 2007 will still be effective.

The two new documents cover powers to give to someone else (your attorney) to act on your behalf. One document covers powers to act on property and financial matters, and the other on health matters. Both these documents are more complex than the EPA's they replace and we can give you guidance on them.

Mental Capacity Act 2005

This Act comes into force in 2006. Check with us for details on how this may affect your estate planning.

An English Will allows you to pass on your estate to whomever you wish. Without one, the State will decide how your assets will be distributed – for instance the first £125,000 only will go direct to your surviving spouse. This may cause all sorts of problems if your main asset is your house and suddenly it is owned by others.

A Spanish Will allows you to decide to whom you would like your Spanish assets left. Without it, sorting out your affairs in Spain will be complex, expensive and very time consuming.

A well drafted Will also allows you to take advantage of Inheritance Tax planning. Dragonfly consultants can help describe this at the first meeting.

Why have two Wills?

Each Will gives the instructions on what should happen to the property in each country. But they need to be drafted carefully so that one does not cancel the other out.

One Will may not cover assets in the other country – so an English Will might not cover the distribution of assets in Spain and vice versa. The law is complex on this subject and if you die without having made valid Wills, then your family will have much less freedom to determine what needs to be done, will spend more money on legal fees and will find that it will take a long time for things to be sorted. We recommend that if you have assets (like a house) in Spain and England , then you need two Wills.

An English Will appoints executors who can then act for the whole estate wherever it is situated. Spanish Wills do not appoint executors, as the people who inherit are considered to be charge of the estate.