Tag Archive for: Wills & Probate

Kainat Jones

Quick guide to LPAs

/ , , Solicitor/ /by

Quick guide to LPAs

Download our free Quick guide to LPAs covering:

  • Your rights under an LPA
  • What do LPAs cover?
  • Appointing an attorney
  • When is an LPA valid?
  • Replacing Enduring Powers of Attorney (EPA)

Click here to download your free quick guide

Quick guide to Lasting Powers of Attorney (LPA).

A Lasting Power of Attorney will ensure that the people you trust are able to take important decisions on your behalf if you become mentally or physically incapable of doing so for yourself. 

In this free guide, we set out the benefits of having an LPA and some of the things to consider when setting an LPA up.

To download your free copy simply complete the form below:

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If you would like a free initial consultation with a member of the Wills & Probate team simple click on the “Speak to Our Experts” button on this page, call us on 01244 356 789 or email info@cullimoredutton.co.uk

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Louise Holmes​, Cullimore Dutton Wills, Trusts & Estates

A Quick Guide to Wills

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Unraveling Inheritance Tax

Unravelling Inheritance Tax

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Unravelling Inheritance Tax – a free guide

Download our free 12-page guide to Unravelling Inheritance Tax covering:

  • Inheritance tax: the basics
  • How marital status affects inheritance tax
  • The new Residence Nil-Rate Band
  • Leaving pensions as part of your estate
  • Making gifts to reduce an estate’s value
  • Setting up a trust
  • Taking out life insurance to pay inheritance tax

Click here to download your free copy

Helping you to understand inheritance tax and guide you through the process of estate planning.
Although often in the news, inheritance tax is still not widely understood. That’s worrying, because it affects thousands of families every year.

If you thought inheritance tax was just for extremely wealthy people to worry about, think again. Rising property prices have meant more estates than ever are likely to face an inheritance tax bill. In fact, the amount of inheritance tax collected has doubled over the last five years, and the number of estates paying inheritance tax has nearly tripled over the same period.

If your estate has an inheritance tax liability, your beneficiaries will have to pay the inheritance tax bill. This may not be the kind of legacy most people think of leaving behind.

The good news is that there are plenty of things you can do – in your lifetime – to take care of potential inheritance tax problems.

In this free guide, we set out some of your options in more detail to help you make an informed choice.

To download your free copy of our 12-page guide to Unravelling Inheritance Tax simply complete the form below:

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Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Phil Appleby

World Alzheimer’s Month and LPAs: Making your wishes clear

/ , , Solicitor | Director | Trust and Estate Practitioner/ /by

September is World Alzheimer’s Month, an international campaign run by Alzheimer’s Disease International, (ADI) to raise awareness and challenge stigma surrounding Alzheimer’s and dementia. As trained Dementia Friends, our team here at Cullimore Dutton are proud to support this campaign and are pleased to share these things to consider when creating an LPA.

We understand that if you are considering creating an LPA and giving Power of Attorney to a loved one, that you may feel a little overwhelmed. There are many considerations, including choosing someone you trust to carry out your wishes and conduct your affairs as you would want. Choosing the right attorney, and making your wishes clear to them, is an essential part of the Power of Attorney process and can help you move forward in your life with confidence. In this article, we look at how to approach the discussion and how to ensure your wishes are clearly communicated when giving Power of Attorney.

Addressing your concerns about giving Power of Attorney
Creating a Power of Attorney is essential for planning for the future. Unfortunately, life is unpredictable, and in the future, you may need someone to make decisions for you and carry out actions on your behalf should you lose the capacity to do so for yourself. A Power of Attorney is designed to provide peace of mind, but we understand that you may still be apprehensive. What if your attorney doesn’t know what to do? What if they do not follow your instructions? Concerns about Power of Attorney are very normal, and there are steps you can take to make the process straightforward for your attorney, providing them with clarity about their role.

Choosing the right person to be your attorney
Most people have an idea about who they wish to be their attorney, but it is still important to consider your choice carefully. You should trust the person you choose to follow your wishes and have the common sense to manage your financial affairs and care confidently. You can also appoint more than one attorney. For example, you may have someone in mind who would be better at arranging everyday care and another who is better with financial decisions.

Discussing your wishes
We would recommend raising the issue with your family and loved ones before you make your Power of Attorney. They can then work with you to choose the best person for the role. They may raise concerns or issues that you had not considered. Discussing the Power of Attorney with your loved ones is also an opportunity to clarify your wishes. You should discuss both financial matters and care matters. Care matters may be where you would like to live, what you like to eat or the clothes you like to wear.

Setting out clearly how you would like your affairs to be managed
To give you additional peace of mind, you can also set out your wishes in a document known as an advanced statement. An advanced statement allows you to set out clear, written instructions. You may wish to include any wishes, preferences, values and beliefs about your future day-to-day care and medical care.

Why use us to help you create your power of attorney?
We are specialists in this area of law and all our team are either qualified members or working towards membership of STEP (Society of Trust and Estate Practitioners).

We are experienced with more than 70 years’ of helping, supporting, and advising clients on their Wills, LPAs, Trusts, Tax and Estates.

We understand the importance of delivering a considerate and approachable service when dealing with sensitive matters at what can often be a difficult time.

What our clients have said…
“Thank you so much for all your assistance with this matter. We really appreciate all the advice, time and help which you have given us – and your patience! You have helped to make a difficult task much less onerous.”
Cullimore Dutton Wills & Probate client

“We’d like to express our thanks for the way that you have professionally and sympathetically handled this on our behalf, and we wish you well for the future.”
Cullimore Dutton Wills & Probate client

If you would like a free initial consultation to discuss creating a Power of Attorney with one of our specialist Wills & Probate team, simply click on the “Speak to our Experts” button, call 01244 729 071 or email info@cullimoredutton.co.uk

Free to attend seminar: Protecting you and your family’s financial future
Join us for this free to attend seminar and hear how current market conditions can affect your financial future and how an LPA can provide financial protections. For more information visit: www.cullimoredutton.co.uk/protecting-seminar. To register simply email events@cullimoredutton.co.uk.

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Louise Holmes​, Cullimore Dutton Wills, Trusts & Estates

The Pitfalls of DIY Probate

/ , , Legal Director/ /by

Advice if you are considering a DIY Probate

Every now and again, we are contacted for advice on dealing with the property, possessions and finances of someone who died some considerable time ago; the executors (those who are responsible for administering the deceased’s estate) have found a problem and require our help to work out what steps to take to resolve it.

Sometimes errors in the administration of an estate do not come to light until we are asked to look into another matter, such as changing the name on the deeds of a house, or when we are asked to administer the estate of a spouse or partner, at which point it transpires that the original estate had not been dealt with correctly.

There are also times when a lay executor (someone with no legal qualification who executes a Will) realises that something complex has gone wrong.

We would always recommend that you seek advice from a Wills & Probate specialist solicitor at the very outset. The advice which they provide may be enough to enable you to deal with the estate yourself, and you can do so with the assurance that your planned approach is the correct one and that you understand the terms of the Will (or the application of the intestacy rules if there is no Will in place).

We are always happy to advise at any stage; in the days just after the deceased passing, or much later. In either case, it is always better and less costly to begin the process on the right track rather than trying to unpick what has already been done.

We can give as much or as little help as you need. We are happy to offer a free half hour consultation to assess the specifics of your matter. Often, a little advice can save a lot of time, money and distress.
Here are just a few of the problems we encounter:

The wording on the Will looks simple but may be anything but.
Any Will needs to be correctly interpreted. A Will may be challenged if someone expects to benefit but feels that they have been left out.

If there is a disagreement between family members it will often be easier to have solicitors involved who can offer a neutral voice.

A Will may provide for tax to be paid in a certain way, using some assets before others.

Inheritance Tax
Inheritance Tax; how do you work it out and what things count towards it? How many lifetime gifts were made, and which ones are taxable and at what rate? Can you ask the revenue to confirm that you’ve got it right?

In cases where the whole value of the estate is approaching the inheritance tax threshold then valuations will be important. They may also be important for Capital Gains Tax purposes even if Inheritance Tax isn’t an issue, especially when those assets are sold down the line.

Have assets increased in value? If so by how much? Is an asset taxable?

Inheritance Tax and Marriage
When the first person in a marriage dies it’s important that the estate is declared correctly; otherwise there can be Inheritance tax implications when the second person dies. For example, have lifetime gifts been declared correctly, have Inheritance tax allowances been applied where relevant.

Nil Rate Band Discretionary Trusts
If it is in the Will it must be dealt with. We have seen many cases where Nil Rate Band Discretionary Trusts have been missed, ignored or dealt with incorrectly. Many people fail to realise that a trust is in the Will – despite the fact they are often lengthy provisions. This can have major inheritance tax implications down the line.

Trusts are often used to save tax, protect assets or to deal with the complexities of second marriages. It is crucial to obtain specialist advice about Nil Rate Band Discretionary Trusts or any Trust in a Will – it may not be until much later that someone realises that an opportunity has passed to protect cash or homes from inheritance tax, nursing home fees or simply human nature.

If the trustees decide that they do not want to have a trust at all, this is often best to be dealt with inside two years of the death to protect inheritance tax allowances. Again, advice at the outset is important.

Deed of Variation
Deeds of variation are a unique tax planning tool and families will often make a Deed of Variation to pass on their inheritance to the next generation. A Deed of Variation must be made within two years of the date of death and it enables beneficiaries to pass on gifts or part of a gift such as money, property etc. to others. It writes the gift back to the deceased, meaning that the original beneficiary does not have to survive the gift by 7 years for it to fall outside of their personal estate for Inheritance tax purposes. A deed of variation can be used to ensure that a beneficiary’s own estate remains under the inheritance tax threshold or to minimise their Inheritance tax liability.

The problems we have seen in relation to Deeds of variation are twofold. Firstly, a valuable tax planning opportunity can be missed if a deed of variation is not carried out within the two year period.

Secondly, we have encountered estates where a deed of variation has been made in one estate and then on a subsequent death the deed of variation has been missed or misunderstood. Sometimes HM Revenue and Customs need to be aware of what’s been done at the time of making the deed of variation or on a subsequent death. There can be tax implications or benefits for not only the estate where the deed of variation took place, but also a subsequent estate. If a Deed of Variation is already in place, a solicitor can ensure that you are applying it correctly and dealing with the Inheritance tax implications appropriately.

Businesses/Agriculture and tax relief
What tax needs paying and when? Is any of it avoidable? Have you paid everything that’s due, obtained reliefs where appropriate or saved up a problem for later?

Do you need a Grant of Probate?
We have encountered estates where it was thought that a grant was not needed, and it transpired many years later that it was. If you think you don’t need a Grant of Probate, we can help you be certain that everything has been dealt with now, saving you from potentially complex legal issues later.

Why use us to support you with your Probate matter?

We are specialists in this area of law and all our team are either qualified members or working towards membership of STEP (Society of Trust and Estate Practitioners).

We are experienced with more than 70 years’ of helping, supporting, and advising clients on their Wills, LPAs, Trusts, Tax and Estates.

We understand the importance of delivering a considerate and approachable service when dealing with sensitive matters at what can often be a difficult time.

What our clients have said…

“I would like to thank you for your kind help, efficiency (and patience!) throughout this process. It hasn’t been an easy time personally, especially at the beginning soon after Mum’s passing. However, I am sure you have been responsible in many ways for making the process as stress free and as straight forward as possible.”
Cullimore Dutton Wills & Probate client

“I’ve been meaning to write to you for some time about the excellent and professional assistance my sons and I received from your associate Phil Appleby throughout the process of diligently resolving an estate on our behalf. I cannot praise him enough and he does great service for your company.”
Cullimore Dutton Wills & Probate client

For more information or help and advice on a probate matter, contact a member of our Wills & Probate Department on 01244 729 071 or email info@cullimoredutton.co.uk

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Kainat Jones

Making a Power of Attorney in Dementia Action Week

/ , , , Solicitor/ /by

Making a Power of Attorney in Dementia Action Week

Dementia Action Week runs 16 – 22 May and is a national event that sees the public coming together to take action to improve the lives of people living with dementia.

When a person receives a dementia diagnosis, this doesn’t automatically mean they cannot make important decisions. However, as their symptoms worsen, they may no longer be able to make decisions about their finances, health or care. We refer to this as losing mental capacity. If you are concerned about losing mental capacity, you may wish to take steps now to protect yourself.

In this article, we look at how someone you trust can make decisions on your behalf or how you can help a loved one living with dementia protect their rights for a time when they lose mental capacity.

Mental capacity – explained
In short, mental capacity means that the person can understand, remember, and use information to make important decisions about their life. Mental capacity can be difficult to ascertain; some people are perfectly able to make daily decisions such as what to eat and what to wear but struggle with financial or health decisions.

Only a healthcare professional can determine whether a person has lost mental capacity. The assessment is not solely based on the person making a strange decision or a single mistake or misremembering a few details but later remembering the correct information.

The Mental Capacity Act 2005 protects and empowers people who may have lost mental capacity to make decisions about their care and treatment. The Act also states that where a decision must be made on behalf of a person who has lost capacity, this decision must be made in their best interests. There is a checklist to help decision makers decide.

Dementia and making a Power of Attorney
A Lasting Power of Attorney (LPA) is a legal document that allows someone you trust to make decisions on your behalf when you are no longer able to do so for yourself. This person is called your attorney. Your attorney can be a family member, a close friend or you could even appoint a professional, for example a solicitor, to be your attorney. You can appoint more than one attorney and even replacement attorneys.

To set up a Power of Attorney, you must have the mental capacity to do so, so it is important to do this as soon as possible if you have received a dementia diagnosis.

Do you need a Power of Attorney if you are married?
It is essential to understand that no one has the power to make decisions on your behalf if you have not set up an LPA. Your spouse or civil partner cannot automatically deal with bank accounts or pensions or even make decisions about your care if you lose mental capacity. As a result, even if you are married or in a civil partnership, setting up an LPA is essential.

If you are interested in making a Power of Attorney in Dementia Action Week and would like a free initial consultation with one of our specialist Wills & Probate team, simply click on the “Speak to our Experts” button, call 01244 356 789 or email info@cullimoredutton.co.uk

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Sarah Gill

New Year, New Will?

/ , , Senior Paralegal/ /by

Why it might be a good time to write a will.

The new year is always an excellent time to write or to review your will. In this article, we take a look at some of the things you should consider.

Have you made a will? 
Recent research by Royal London determined that 54% of UK adults do not have a will. This includes 59% of parents who either do not have a will or have one that does not accurately reflect their wishes. If you have not made a will, you have no control over what happens to your assets after you pass away. If you have children, own property, have savings or investments, or run a business, making a will is particularly important.

Does your will still accurately reflect your wishes?
If your circumstances have changed this year, you should update your will to reflect those changes. Perhaps you have changed career, moved home, got married or divorced, or welcomed a new baby to the family. In any of these circumstances, you should update your will to ensure it is reflective of your current situation.

Do you need to change your beneficiaries or executors?
Many people need to change the people that are named in their will for a variety of reasons. Perhaps you have outlived executors or beneficiaries named on your will, or maybe the relationship has deteriorated. In this case, you would need to replace them in your will to avoid complications in the event of your death.

Have your business interests changed?
If your business interests have changed significantly, now might be a good time to review both your will and your succession plan for your business.

Do you wish to take advantage of Inheritance Tax planning?
It is always advisable to review your will and estate regularly in line with current tax legislation, reliefs and opportunities to save on Inheritance Tax. Reviewing your affairs can be a great way to start the year. It allows you to understand where you are financially, and to effectively make plans for the future, knowing that your will is up to date.

If you would like a free initial consultation to discuss your will with one of our team contact us on 01244 356 789 or email info@cullimoredutton.co.uk.

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Kainat Jones

Gifting and inheritance tax: Explained

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With Chrismas only a few short weeks away, the giving and receiving of gifts will be high on everyone’s agenda. As part of your inheritance tax planning, you may consider gifting money or property to family or friends, but what should you be aware of?

In this article, we give a brief overview of gifting and inheritance tax, including who you can gift to, how much you can gift, and what it means if you continue to benefit from the gift.

Giving away money or property to avoid inheritance tax 
One of the easiest ways to mitigate your inheritance tax liability is to gift money (or property) to friends, family, or charity while you are still living. There are some gifts you can give in your lifetime which will not incur tax after your death, including gifts to your spouse or civil partner. If you make a gift seven years before your death, it will usually be excluded from the value of your estate for inheritance tax purposes. Gifting can be a complex area, so you should speak to a solicitor about gifts as part of your estate planning process.

Who can I give gifts to and how will this impact the inheritance tax position of my estate?
Gifts to your spouse or civil partner are usually tax-free, however, this does not apply to unmarried partners or cohabitants. If you wish to leave gifts to an unmarried partner or cohabitant, other family members or friends, you should seek estate planning advice to determine the most tax-efficient way to do this.

Annual Exempt Allowance
Each individual is allowed to give away up to £3,000 in any one tax year. You can carry forward your exemption amount for up to one year. So, for example, if you do not use any of your allowance in 2021, you can gift up to £6,000 in 2022.

Small gifts 
You can give small gifts of up to £250 per person, such as for birthdays or Christmas presents, unless another exemption has been used for the same person.

Wedding gifts 
There is also an exemption for wedding gifts, with how much you can gift dependent on your relation to the couple getting married. If you are a parent, you can gift up to £5,000, if you are a grandparent or great-grandparent you can gift up to £2,500, and for everyone else, the exemption threshold is £1,000.

Potentially Exempt Transfers
Outright gifts that exceed any of the above allowances are known as potentially exempt transfers. If you die within 7 years of making the gift, the gift will be brought back into your estate for inheritance tax purposes. This will reduce, or use up, your nil rate band allowance (the nil rate band is the amount each individual can leave without incurring inheritance tax).

Retained benefit 
You must be aware of the consequences of making a gift which you will still benefit from during your lifetime. The most common example is where a parent gifts their home to their child but continues to live in the property rent-free until they die. When this is the case, the property will still form part of the estate in the event of death, regardless of whether seven years have passed since the date of the initial gift.

If you would like a free initial consultation with one of our specialist Wills, Trusts & Estates team, contact us on 01244 356 789 or email info@cullimoredutton.co.uk.

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Kainat Jones

Should you make your Powers of Attorney online?

/ , , Solicitor TEP/ /by

It is possible to make a Power of Attorney online, but whether you should is a different matter.

The process of making a Power of Attorney seems straightforward, but for those who are unfamiliar with the process, there are many potential pitfalls which could result in your application being rejected or your wishes not being carried out correctly.

In this article, we look at some of the reasons why it may be preferable to instruct a solicitor to advise you and to prepare your Power of Attorney rather than attempting to prepare your own online.

How do I make a valid Power of Attorney? 
Strict formalities must be followed for a Power of Attorney to be valid. For example there is a strict order as to who signs the document and if not followed, your Power of Attorney will be rejected by the Office of the Public Guardian. To be valid, and to be able to use the Power of Attorney, it must be registered with the Office of the Public Guardian.

Why use a solicitor to set up a Power of Attorney? 
When you instruct a solicitor to set up your Power of Attorney, your solicitor will be able to guide you through the two different types of Lasting Power of Attorney, explaining how and when each one can be used and by whom. Your solicitor will be able to tailor their advice to your individual circumstances, which can be invaluable when preparing important documents such as these.

Your solicitor can explain who can be appointed to act as your attorney(s) and can explain what duties and obligations they will have as your attorney(s).

A Power of Attorney can operate in a number of different ways and your solicitor will explain the various options to you. Can attorneys make decisions alone, or must they make decisions jointly with others? Would you rather stipulate which decisions are to be made together and which they can make separately? Would you want your Attorneys under your Property and Financial Affairs Lasting Power of Attorney to be able to use the document as soon as registered, with your consent? Or only once you have lost capacity? These are just some of the questions that may arise during discussions with your solicitor that may otherwise be overlooked should you attempt to set up a Power of Attorney yourself.

Your solicitor can explain what would happen with your Power of Attorney documents should one of your attorneys predecease you or be otherwise unable to act (for example, if your attorney loses capacity).

Your solicitor will analyse your assets and liabilities to identify whether you need a separate power of attorney to cover any business interests.

You may also wish to set out your wishes for how your affairs should be managed; your solicitor will help you to express any wishes you have clearly. They can also advise on how these should be set out to ensure that all eventualities are covered, and your wishes can be carried out as you intended.

Your solicitor will explain the effects of a Power of Attorney to you clearly to ensure that you understand the effect of the document and the power you will be giving to your attorney(s), which can prevent the validity of the Power of Attorney from being challenged at a later date.

If you instruct a solicitor to prepare your Power of Attorney, you can be confident that it will be set up correctly and tailored to meet your individual needs and circumstances. In addition to this, your solicitor can also advise you on any additional steps you may wish to take, such as revising your will or inheritance tax planning.

If you would like a free initial consultation with one of our specialist Wills, Trusts & Estates team, contact us on 01244 356 789 or email info@cullimoredutton.co.uk.

How an AIP will help you secure your dream move

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Adele Bebbington-Plant

Leaving gifts to charity in your will

/ , , Solicitor | Director | Head of Wills & Probate/ /by

The International Day of Charity takes place annually on 5 September, but did you know that one of the best ways to support a charity is to leave them a gift in your will?

Many charities in the UK rely on donations left behind by their supporters, and any gift you leave could make a vital difference to the work of the organisation.

There are many benefits to leaving money to a charity for your estate too, including tax relief.

In this article, we look at some of the most common questions people have about leaving money to charity in their will.

How can I leave money to charity in my will?
Generally speaking, there are two ways to leave money to charity in your will.

The first option is to very simply, specify any charities you wish to benefit from your will. Alternatively, you can leave money or property in a trust and leave it up to your trustees to decide.

Where you choose to name a specific charity, it is always best to include the charity number. Many charities have quite similar names, or the name of the charity may change, and you want to be sure your gift goes to where it was intended.

If you choose to let the trustees decide where your money goes, you may wish to leave instructions to help guide them.

What can I leave to charity in my will? 
You have several options for what to leave a charity in your will, and you may wish to consider what might benefit them the most. Your gift may be:

● A cash amount

● A specific property or asset

● Your residuary estate or a share in your residuary estate (your residuary estate is what is left after other specified gifts, costs, and tax).

Is it possible for family members to object to a gift left to charity in my will?
Certain people can make a claim against your estate if your will fails to provide for them. On this basis, a family member can contest any charitable gift in order to obtain the financial provision they are entitled to under the Inheritance Act, which provides that you must make reasonable provision in your will for any dependants that you have.

Alternatively, it is possible for a family member to contest the will on the grounds that you were under undue influence or not of sound mind when you made the gift.

As part of our will drafting service, we would discuss the provisions of your will with you and advise the best way of proceeding to reduce any risk of a potential claim.

Do I need to pay tax on charitable gifts in my will? 
Any gift left to a UK charity is free of inheritance tax liability. However, if you wish to make a gift to a charity outside the UK, the situation is more complex. Not only are charitable gifts tax-free but leaving gifts to charity in your will could mitigate your tax liability overall. When you leave at least 10% of your estate to charity, the inheritance tax liability of the rest of your estate falls to 36%.

If you would like a free initial consultation with one of our specialist team to discuss leaving a gift to charity in your will, contact us on 01244 356 789 or email info@cullimoredutton.co.uk 

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.