Wills, Trusts & Probate Solicitors 

For many approaching later life, may have concerns over the impact that Inheritance Tax and Capital Gains Tax can have on their loved ones. Others may be looking to make sure that their legacy is left in the right hands. Estate planning covers both entities and is a viable solution that enables you to assess and prepare your assets so that they are protected for your relatives once you’ve passed.

What is Inheritance Tax?

Inheritance tax is a UK government tax liable to those who have inherited assets valued £325,000 or more. Inheritance tax is calculated at 40% of the value of the assets, which can include savings, possessions and property, pensions, and any money or property you gave away during the seven years prior to your death.

What is Capital Gains Tax?

Capital Gains Tax is another UK government tax liable to those who have inherited assets, sold the assets, and made a profit. The amount liable to pay depends on your circumstances and the details of the assets sold.

How can I protect my beneficiaries from paying tax on their inheritance?

The earlier you start, the better. We can help you by making provisions for the future with specialist Wills and Trusts. We understand that it’s never nice to think about death and how your assets are divided after you’re gone, but estate planning is crucial if you want to protect your assets from tax. We will start by Writing a watertight Will, making a comprehensive list of your assets and liabilities (debts) and evaluating how to gift these in a plan that protects your beneficiaries against paying tax.

It is also worth setting up a trust fund. Most people think of trust funds as an allowance released to those once they reach a given age, however, they are also an efficient way to reduce or avoid paying inheritance tax altogether. You can even include your life insurance in a trust, which can relieve a sizable amount of tax liability.

How can I make sure that my assets are divided in the way that I want?

Writing a Will provides you with complete peace of mind and clear instructions for your executor on how you want your assets and liabilities to be shared. There are various types of Wills that can be drafted to suit your circumstances and wishes. You may be thinking of leaving out a person who will ordinarily be entitled to your estate, or perhaps you would like to include a life interest trust for a spouse. Whatever the reasons, we will get to know you as an individual, explore your options, and provide advice in plain English.

Additionally, we will make provisions for your funeral expenses and outline your wishes so that your executor can make the arrangements accordingly.

Life can take some unexpected turns. Even as we mature, we brush aside the eventualities that come with later life. Whatever happens in the future, can be less to worry over with a Lasting Power of Attorney in place. Choosing someone to help with decision making is especially important if you have a hereditary disease or have been diagnosed with a life-changing illness. We understand that this is a highly sensitive subject, however, making plans now can make things so much easier for your loved ones in the event you become incapacitated.

What is a Lasting Power of Attorney?

A Lasting Power of Attorney is someone who you appoint to make decisions for you if or when you become unable to make decisions for yourself. An LPA can be anyone over the age of 18 years and can make decisions on your;

You can have more than one LPA. Usually, people choose an LPA for affairs that involve their health and welfare, and a separate person for affairs involving property and finances. You could choose one person to cover both areas.

A Lasting Power of Attorney becomes effective in the event that you can no longer make decisions for yourself, however, we can help you grant someone power of attorney if you no longer wish to deal with your affairs.

How do I appoint someone as a Lasting Power of Attorney?

When you choose a Lasting Power of Attorney, we highly recommend that you choose someone you can trust absolutely.

Once you’ve chosen the right person(s), and you have their consent, we will do the paperwork. Each person’s circumstances are different when it comes to family life and choosing an LPA. Those who have larger families may want to have two or more LPAs. You might want more than one person to cover the health and welfare decisions, in which you will need to decide in your agreement whether they will need to make decisions together, or not. Of course, we will provide you with advice in plain English, and answer any difficult questions along the way.

It’s worth noting, that financial LPAs will need to have a good credit history, which means they have not previously been bankrupt or subject to a debt relief order. In the event that your financial LPA becomes bankrupt or is subject to a debt relief order, will automatically cancel their guardianship. This, however, does not apply to health and welfare LPAs.

What if I become incapacitated before I appoint a Lasting Power of Attorney?

If you already cannot make decisions for yourself because, for instance, you ‘lack mental capacity’, someone can apply for Deputyship. Much like a Lasting Power of Attorney, a Deputy will need to be 18 or over and can make decisions for you that involve your welfare and finances.

It is possible to apply for a one-off decision from the Court of Protection if there are concerns about the personal welfare or finances of someone who’s lost mental capacity; and you want to get a one-off decision, for example, the sale of the protected person’s property.

We don’t often anticipate losing a loved one. Even when we know that time is running short it can still come as a shock and take time to process. Whenever the time is right, obtaining the grant of probate is the first step taken to dividing the assets outlined in the Will. Even in circumstances where there isn’t a Will, can still be pro-actively dealt with by applying for Letters of Administration.

What is Probate?

Probate is the word used in England and Wales for the legal process of obtaining permission to commence with the duties set out in a Will.

How can I obtain the Grant of Probate?

Each case is different to the next and family circumstances can vary. By getting to know you as an individual and evaluating the terms set within the Will, we can provide you with bespoke advice on obtaining the Grant of Probate.

Usually, the person nominated as the Executor in the Will has the responsibility of obtaining the Grant of Probate. However, in cases where there isn’t a Will, certain people can apply for Letters of Administration.

We will submit an application to HM Courts of Tribunal Services proving that you are the appropriate person(s) to administer the deceased’s affairs and are entitled to inherit or deal with any assets that the deceased may have left behind.

We will guide you through the application process, prepare the necessary documents and tax forms, and prepare you for the interview at the Probate Court.

What happens when I Obtain Probate?

Once you have obtained probate, you will have legal responsibility for the deceased’s assets and wishes. We can help you establish the current assets and liabilities, and work towards distributing the remainder of the deceased’s estate according to the terms of the Will or Rules of Intestacy. We deal with both domestic probate and assets that are located abroad. Depending on the jurisdiction involved, it may take longer in processing your application. Nevertheless, we have experience in doing probate all over the world, especially in Switzerland.

In addition to the advice from our Wills & Probate Solicitors, you may also find the following websites useful: