Wills, Probate, Tax and Trusts

People are living more complex lives and for longer than ever before, so more needs to be done to protect accumulated wealth for your own use, or to pass on to your heirs. Past house price inflation has meant that many homeowners fall into the Inheritance Tax net, and more people owning second homes, in the UK or abroad. The transferable nil-rate band introduced in 2007 has reduced the likelihood of an Inheritance Tax charge on death for many estates, but is not straightforward. The rise in number of divorces and remarriages and the complexity of the new family groups which can arise as a result and the need to consider asset protection for a variety of family and health reasons all mean that there is increased need to use specialist advice to protect estates.

Wills

Everyone should consider making a Will to deal with their estate at their death. The process for drawing up a Will is generally far more straightforward than most people believe. It is an action that can provide you with the knowledge that, in the event of your death, your wishes will be carried out and will achieve the effect you desire. Intestacy Rules, laid down in 1925, and only changed a little since, will determine what is to happen to your estate if you do not leave a Will. These rules are rarely adequate or fair in modern family life, and can have unexpected results. Disappointed beneficiaries may have to take legal action to correct unintended consequences and this is made even harder if children are beneficiaries.

We advise promptly and sympathetically on the drafting and updating of Wills to ensure that as your circumstances change, your Will continues to reflect your wishes in a practical and easily understood way.

Inheritance Tax planning

A wide range of tax planning measures can be taken during your lifetime or by Will to reduce the potential for paying Inheritance Tax. We can advise you on the best options for your particular situation, as action may still be advisable, even following the introduction of the Transferable Nil-Rate Band in 2007. We also specialise in Wills dealing with business or agricultural property, and can liaise with your accountants or financial advisors to ensure workable structures are in place to enable businesses or farms to continue operating on the retirement or death of the owner. We also deal with overseas estates, working together with lawyers based in the country concerned to ensure cross-border issues are dealt with, though we do not give specific advice on overseas legal issues.

Probate and administration of estates on death

We provide advice with understanding and sensitivity when administering estates. We can establish whether it is necessary to obtain a Grant of Probate or Letters of Administration to allow assets to be collected and distributed in accordance with the wishes of the deceased. We are happy to deal with as much or little of the administration as you need and will advise on potential tax- saving measures where appropriate to ensure the estate is transferred to the beneficiaries speedily and in a tax-efficient way.

Powers of Attorney

Lasting Powers of Attorney (and Enduring Powers of Attorney made before 1st October 2007) allow you to place the day-to-day administration of your finances with one or more Attorneys, if your health is poor or future deterioration of your mental abilities might prevent you from attending to your financial affairs. A Lasting Power of Attorney provides the flexibility to allow you to continue to deal with your own affairs while you are able or willing to do so, but ensures that your attorneys can carry on doing this on your behalf, if necessary in the future. Lasting Powers of Attorney (Personal Welfare) can also be made to appoint an attorney to take healthcare decisions on your behalf.

We can explain how these documents can be best used to support your circumstances and will draft them in accordance with your wishes, and deal with registration of the powers before they can be used.

We can also advise on the use and registration of existing Enduring Powers of Attorney where necessary.

Court Of Protection- Deputyship

Some people need their financial affairs managing and do not have an Enduring or Lasting Power of Attorney in place. In these circumstances an application for the appointment of a Deputy can be made to the Court of Protection. If you are a Deputy, or wish to be appointed, a considerable amount of paperwork must be dealt with, and you may need to obtain Court Orders before dealing with certain assets or situations. We can guide you generally, and draft the detailed paperwork involved, and obtain Court Orders for you where necessary.

Equity release

We can guide you through the various issues surrounding equity release schemes, if you are considering raising funds by releasing some of the equity in your home.

It is crucial to ensure the rights to your property are not compromised by the scheme you are considering and that the scheme is appropriate to your circumstances. You should also check that the scheme belongs to the Safe Home Income Plans (SHIP) Code of Practice.

You may also need to consider the impact on arrangements made in your Will and how the plan affects your Inheritance Tax and also sometimes welfare benefits situation. We can explain the benefits and potential problems of these arrangements and how they affect your estate.

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