Private Client

You may belong to one of the most intelligent species, but if you ignore some of the basic elements of life planning you could find yourself, your family and other relatives floundering.

Wills and Tax Planning

There is nothing to fear in making a Will - it's a simple case of life planning and, as your life plans change, so should your Will. Make the time, make the effort, make a Will. You owe it to yourself and your family.

Everyone has an excuse for not making a Will:

• "I've never found the time". A little time could save endless, painful arguments and discussions after your death.
• "I'm too young to make a Will". The unexpected can happen and if you have children, you will want their futures to be safe and secure.
• "It's expensive". Prices do vary, but making a Will is not expensive and could save your family a great deal of money in the long run.

A Will is a logical step in your life, rather like taking out insurance or starting a pension scheme. It is a statement of your intentions, so the people you want to benefit actually do so.

If you die 'intestate', without a Will, the law has a series of rules for who receives a share of the estate - and they may not be who you want.

A few things to remember if you don't have a Will:

• Your spouse or civil partner does not automatically inherit all your property and may have to sell the family home to ensure that all your relatives get their 'fair share'.
• If you and your spouse die, your children will be left without guardians and the state may decide who should look after them.
• If you and your spouse die together, all of your property could pass to only one side of the family.
• If you divorce, you may still wish to benefit your children from your former marriage.
• Your family could fight over your belongings and personal items.
• The taxman may end up with far more of your estate than you could ever imagine.
• If you marry your existing Will becomes invalid.

Of course, your priorities will change throughout your life, according to your circumstances. But as your situation changes, so can your Will.

With a little thought and preparation, and some help from us, a Will can give you peace of mind while you are alive, and benefit others when you can no longer give them personal support.

We will help you overcome any fears you may have about making a Will and give you a fast, professional and personal service.

Come and see Gavin Henshaw, or , or give us a call. If you would prefer, we can also arrange to see you in your home.

Lasting Powers of Attorney

A power of attorney is a legal document where one person gives another person (the attorney) authority to make certain decisions on his or her behalf. From the 1st October 2007, you are able to make a new type of power of attorney, called a Lasting Power of Attorney (LPA).

Types of LPAs

There are two types of LPAs:

• A property and affairs LPA, which allows your attorney to deal with your property and finances, as you specify;
• A welfare LPA, which allows your attorney to make welfare and health care decisions on your behalf, if and when you lack the mental capacity to do so yourself. This could also extend, if you wish, to giving or refusing consent to the continuation of life sustaining treatment.

Your Attorney

As with any power of attorney, it is an important document and you should take care whom you appoint. They must be trustworthy and must have appropriate skills to make the proposed decisions. If you appoint more than one attorney, you can appoint them to always act together or, if more convenient, to act independently of each other. You may even appoint them to act jointly for some things and together for others, although this should only be done with advice, as it may cause problems when using the power. You can choose as your attorney a family member, a friend or a professional such as a solicitor, or you can appoint a mixture of people.

You may also choose to appoint a successor to your attorney, in case they die or otherwise cannot act for you.

When can the Attorney act?

The attorney will only be able to act when the LPA has been signed by you and your attorney, and certified by a third person who can confirm that you understand the nature and scope of the LPA and have not been unduly pressured into making the power. The LPA must then be registered with the Office of Public Guardian before it can be used. The financial LPA can be used both when you have capacity to act, as well as if you lack mental capacity to make a financial decision. The welfare power can only be used if you lack mental capacity to make a welfare or medical decision.

Existing Enduring Powers of Attorney

Any Enduring Power of Attorney, validly made before 1st October 2007, will continue to be able to be used but only in respect of your property and affairs. If you wish to give authority over your health or welfare you will need to make a welfare LPA.

What happens if you have not made a LPA or EPA?

If you lack capacity to make a financial decision, then it may be necessary for an application to be made to the Court of Protection for an appropriate order, such as appointing another person to make decisions on your behalf. This is both costly and time consuming and the release of your funds may be directly controlled by the Court.

Most care and treatment decisions can be made on your behalf without the need for a Court application. However, if you wish to avoid potential family disputes, you can choose someone to make those decisions on your behalf by making a welfare LPA.

Administration of Estates

When you've suffered a bereavement it can be hard to cope with the practical aspects and paperwork, as well as the emotional loss. The Head Partnership can take care of the administration of the estate for you by collecting all the information needed, preparing the application for probate, and dealing with the transfer of property and the distribution of the deceased's estate.

All probate matters are dealt with sympathetically and efficiently and we can also advise on post-death variations and the establishment of Trusts to minimise Inheritance Tax liability and to protect money on behalf of minors or other vulnerable beneficiaries.

In some cases it may not even be necessary to apply for a Grant of Probate, depending on how the deceased's property is held, so please do contact us for a free initial consultation to help you decide how best to proceed.

Inheritance Tax

Will the changes affect you?

Following the Chancellor's recent pre-Budget speech we have produced this information to reassure our clients about the impact of the changes to the Inheritance Tax rules.

In fact, very little has changed.

The Nil Rate Band allowance (ie. the amount that each person can give away free of tax on death) is still £325,000 rising to £350,000 in 2010.

Lifetime gifts are still the same:

• £3,000 per annum
• £5,000 to children on their marriage
• £2,500 to grandchildren on their marriage
• Regular gifts out of income
• Lump sum gifts subject to the seven year survival rule

The only change is that the Nil Rate Band allowance can now be transferred between spouses or civil partners so that on the death of the second spouse/civil partner the sum of £650,000 can be left tax free to their children or other beneficiaries instead of just £325,000. This benefit has also been extended to existing widows/widowers.

If you have already made Wills to include a Nil Rate Band Discretionary Trust, these do not need to be altered. The Wills still give you the same tax advantages as originally intended.

If you are still considering Nil Rate Band Discretionary Trust Wills, please remember that even if you no longer need protection against Inheritance Tax, these Wills can also give protection against the effects of long term care home fees and can provide you with extra flexibility in the distribution of your estate to your children and other beneficiaries.

The most important thing is to ensure that you have a Will which does what you want it to do.