Private Client Blog

You may have considered putting in place a Lasting Power of Attorney (‘LPA’) which relates to your personal financial and property affairs, but have you considered how this might work in relation to your business? Would you be comfortable with your personal Attorneys being in control of your business interests?

An LPA is a powerful document in which you appoint people of your...

Following the recent UK release of the documentary, “Framing Britney Spears”, the case of the court-ordered conservatorship of the singer Britney Spears has been in the headlines.

This article looks at US conservatorship and the English equivalent, Deputyship. Both appointments grant power to an individual to act on another individual’s behalf when they do not have the...

A Lasting Power of Attorney (LPA) is a powerful legal document, enabling you (the Donor) to appoint an individual or individuals of your choosing (your Attorney(s)) to manage your financial affairs and/or to make decisions regarding your welfare, should you become unable to make such decisions yourself in the future. An LPA is, therefore, an important document and there can be serious...

If you have been appointed as a property and financial affairs deputy, or if you are acting as an attorney under a property and financial affairs Lasting Power of Attorney (LPA) for a relative or friend (known as the donor), you will realise fairly soon that this can be a challenging and time-consuming role. There are many things to consider when looking after someone else’s money. You...

Whether you are buying a property alone or with another person, purchasing your first or your fifteenth home, planning on living in it or letting it out: whenever you acquire property, you should consider whether you need to make or update your Will as a result.

Fundamentally, your Will determines who receives your estate when you die. This includes any property you own solely or as tenants in...

What is the new ‘Use an LPA’ digital service?

A new ‘Use an LPA’ feature has quietly been introduced to the Lasting Power of Attorney (LPA) service offered by the Office of the Public Guardian (OPG).

Historically, you had two options in how to put an LPA into effective use. You could provide the original to the third party – a bank or building society for a...

Married couples are often advised, for Income Tax efficiency, that assets should be held jointly. Typically the division is 50:50 but sometimes it is heavily weighted to one party (say, 90:10) so that the lower rate tax payer receives most of the income from the asset, typically rental income, and overall this is taxed at the lowest rate possible.

There are potential tax efficiencies in doing...

Executors are those named in a Will who are responsible for administering the estate of someone who passes away. This is a hugely responsible role and it is well worth giving careful thought and consideration as to who you think will have the ability, time, and is willing to accept the responsibility of this role.   

What surprises most people is that you do not need the consent...

Will you actually save money?

One of the main reasons for preparing your own Will is to avoid incurring the costs of either a solicitor, a Will writer or an online service provider.

You might save money up front, compared with using a professional service, but if you get anything wrong, you could be storing up costly complications for your family and friends to resolve, when they come to put...

Further to a blog we posted in July 2020 on the subject of witnessing Wills by video link, a Statutory Instrument (SI) has now been laid before Parliament, which will come into force on 28 September 2020. The effect of this will be to change the requirements for witnessing Wills to allow witnessing by video link. This will apply to all Wills made between 31 January 2020 and 31 January 2021.

...

Many people are aware that a Will is important; but most people do not have one and don’t appreciate why it is as important as it is, both legally and emotionally for both you and those you leave behind.

You care about your loved ones

A Will makes it much easier for your family or friends to sort everything out when you die – without a Will the process can be more time-consuming...

While the answer is anyone over the age of 18 should have a Will, for the reasons discussed in our previous article Why make a Will?, there is arguably a case for asking: do you need a Will; is it essential?

You own a property

Solely

If you own a property in your sole name, you need a Will to ensure this can be dealt with efficiently on your death.

Even if the equity is minimal; due to your...

The Government has announced a major change in the procedure for signing Wills, in response to the COVID-19 pandemic and the advice to avoid close contact with other people.

To be valid, a Will has to meet certain criteria, including that the person making it (the ‘testator’) has the necessary mental capacity and is not being bullied into signing it. The Will also has to be validly...

We are delighted to announce that we have received recognition in the newly published 2020 edition of Chambers High Net Worth (HNW) Guide. Our Private Wealth Law and Private Wealth Disputes teams, and three lawyers within the firm have received recommendations for expertise in their field:

Coronavirus has changed every aspect of our lives recently, but we are finding many people are using the time during the lockdown as an opportunity to review their affairs, for example, considering their Wills and Lasting Powers of Attorney (LPAs). This article highlights some of the adaptations we have made to the process of advising clients at this time, and to give our clients peace of mind...

We are enduring an unprecedented period of disruption as a result of the COVID-19 pandemic. One matter which is of particular concern to our clients is whether or not they have a Will in place which best fits their circumstances and wishes. They may not have a Will at all, or they may have one which is out of date and needs revising. Making a Will is vital to ensure that your assets pass as...

In early 2015, an elderly man who thought he was having a heart attack whilst in a McDonald’s restaurant in Canada scribbled down on a thin, brown napkin that his estate should be split evenly between his seven living children, who he then listed.

It turned out the elderly man was not having a heart attack, but he died seven months later in December 2015, having made no further Will....

If you sell or give away assets like shares or property which is worth more than it was when you acquired it, Capital Gains Tax (CGT) may be due. At present, CGT must be paid anywhere between 22 months and 10 months after the disposal. From 6 April 2020, the payment time will be shortened quite considerably.

Where CGT is due on residential property disposals, a return will need to be filed and...

Leaving money to a charity in a Will is a great way to leave a lasting legacy for a cause particularly close to your heart, and reduce the Inheritance Tax your estate will be subject to on  your death at the same time. 

Types of charitable giving in Wills

Cash Gift - Leaving a gift of a cash amount is the simplest way of leaving a gift to charity. However, this can be...

A Lasting Power of Attorney (LPA) is a legal document which enables you to decide who you trust to make decisions about your finances, property or healthcare, in the event you are no longer able to do so, and appoint them as your Attorney.

Age-related issues, such as dementia, are often the reason that people are no longer able to make such decisions. However, an event such as an accident or...

As a contentious trust and probate practitioner I have come to understand how emotive the whole issue of inheritance is. Should your parents leave their worldly wealth to you? What provision should you make for your second time spouse in preference to the children of your first marriage? Should you treat your children equally? Should you prefer charities or close friends over family?

These are...

Giving thought to how best to use your annual tax exemptions now means that later in the year, you can benefit from all the appropriate exemptions and reliefs that are available to you. You will avoid having to rush things when 5 April looms, or worse, finding then that you are not in a position to make the most of your tax free allowances.

You may have seen reports that the Office of Tax...

If a dog is a man’s best friend then making sure that they (or any other pet) are provided for if something happens to you will be a priority for all animal lovers.

The good news is that you can make provision in your Will for what will happen to your pet when you die. However, it is not possible to make a gift to your pet, so it is important to take advice so that a correctly drafted...

Declarations of Trust (formal written agreements regulating the arrangements between two or more (typically unmarried) co-owners of property) are often overlooked when people buy a property together. If you co-own a property with someone, then you need to be clear about what you each own and are responsible for (although they can have a role as part of efficient tax and estate planning)....

This blog is to discuss the proposed increase to the fee charged by the Probate Registry when making an application for a Grant of Probate (and similar grants).

At the moment, the fee is £155 if applying via a solicitor, or £215 for a Personal Application, where the value of the Estate is over £5,000. The fee is currently a flat one, no matter the value of the Estate.

Under...

The fees for death certificates have now risen, as from 16 February 2019.

Previously, the three fees for death certificates were:

• £4 if requested when registering the death;

• £7 if requested after registering the death, but whilst the register is still open; and

• £10 for certificates requested after the register has been closed.

The new fees are £11 for each...

Attorneys acting under an Enduring or Lasting Power of Attorney, or deputies appointed by the Court of Protection, should be aware of their limited power to make gifts from the funds they manage on behalf of a mentally incapacitated person, as set out in the Mental Capacity Act 2005.

Typically gifts to family on birthdays or at Christmas, which are not unreasonable taking into account the size...

In a static property market it often becomes harder to bring a chain together when selling your home. If you can afford to, you may be tempted to break the chain and purchase your new home prior to selling your current one. You may then consider renting out the property and selling it when the market improves.

The decision to buy a new home before you have sold your current one has always had...

It used to be considered that Private Client work continued steadily with changes to the law and procedure being comparatively rare, and changes happening on a more piecemeal and protracted basis over time. This can no longer be said, particularly if November is anything to go by; suddenly we have changes upon us with very little notice. Firstly, the amendments to the Non-Contentious Probate...

Lasting Powers of Attorney (LPAs) are important legal documents that dictate who can make decisions on your behalf relating to finances & property, or health & welfare, in the event you no longer have mental capacity to make those decisions. You can choose who your Attorneys are to make decisions for you and give them relevant instructions or preferences as to how they carry out those...

We are often asked about the situation of expatriates who have purchased a property in Spain with a view to retiring to Spain, or are already living in Spain but still own assets in the UK.

The EU Succession Regulation (650/2012) came into force on 17 August 2015, under which Spanish successions are governed by the law of the last residence of the deceased, unless they made a Will opting for...

We are delighted to announce that our Private Client team has been shortlisted for awards this year.

In the Surrey Law Society Awards 2018, Madeleine Gooding has been nominated in the Rising Star of the Year category, and Sue Crosby for a Client Care Award, which is great recognition for Sue as she often goes the extra mile for her clients. The Surrey Law Society Awards will be announced on 20...

Changes to reporting and paying Capital Gains Tax (CGT)

Something we have been expecting for a long time is a reduction in the timescale for paying CGT on residential property. Currently, if I sell a house now, which is not my Principal Private Residence - therefore the gain is not tax-free - the tax will not be due for payment until 31 January 2020, some 18 months after the sale. Draft...

The Ministry of Justice has recently launched a scheme to refund those who may have paid more than they should for applying to register powers of attorney.

If you registered a Lasting Power of Attorney (LPA) or Enduring Power of Attorney between 1 April 2013 and 31 March 2017 you may be eligible for a refund. This can be claimed either by the person who made the power of attorney (called the...

It is important to ensure that your Will is up to date and that it reflects your current wishes. To assist you with this, TWM would like to offer you an appointment, free of charge, with one of our specialist Private Client solicitors to review your Will. There have been a number of changes in the law over the last few years, including the new Residence Nil-Rate Band, and we can advise and...

Mutual Wills are Wills made by two or more individuals who agree not to cancel them without the agreement of the other(s). They have created a contract between them not to cancel or change their Wills; this agreement is legally binding and can be enforced, as is the case with any contract.

For some couples, the idea of entering into Wills which mirror each other and cannot be varied or...

They say no news is good news, and with the exception of the SDLT exemption for most first-time house buyers the November Budget contained little in the way of surprises. 

The Personal Allowance will go up to £11,850 from April and the basic-rate tax band up to £34,500, both increases in line with inflation.

For people of working age, the pensions lifetime savings...

A Lasting Power of Attorney (LPA) is a legal document which enables you to decide who you trust to make decisions about your finances, property or healthcare, in the event you are no longer able to do so, and appoint them as your Attorney.

Age-related issues such as dementia are often the reason that people are no longer able to make such decisions. However, an event such as an accident or...

I was very interested to read on my BBC News app this week that a recently retired Senior Judge from the Court of Protection (Denzil Lush) was raising serious questions about Lasting Powers of Attorney (LPAs) and vowing never to make one himself. Naturally, as someone who promotes LPAs to my own clients on a very regular basis, this is not something I was expecting to read from a well informed...

Changes to Inheritance Tax (IHT) legislation have recently been implemented and, as tax is consistently a hot topic, these changes introduce fresh considerations both for individuals writing a Will for the first time and for those reviewing existing Wills.

Presently, every person has a Nil Rate Band (NRB) allowance of £325,000. Put simply, this is the maximum sum a person can give away...

We are in an odd position following the election, and what will happen to the UK tax system in the coming months is now anyone’s guess. Before 8 June 2017, a much-reduced Finance Bill was enacted, with the expectation of a further Finance Bill to be tabled before the end of the month. This second-half of the original Finance (No.2) Bill contains all the contentious provisions dropped in...

Have you considered what medical treatment you would want to receive in the future if, at that time, you lacked the necessary understanding to decide? Although a very sensitive topic, this is something that we should all consider.

It is possible to make certain healthcare decisions in advance by signing a document known as an “Advance Decision" (formerly known as a "Living Will"). Your...

Mr Hammond had plenty to say in his “last Spring Budget” but there was nothing headline-grabbing or particularly unexpected.  As usual with these events, there is also a lot in what he didn’t say.

Budget Announcements:

• Office for Budget Responsibility forecasts – generally favourable
• Business Rates – additional reliefs announced
• Dividend allowance to reduce...

A recent Court decision has thrown back into focus the fraught question of whether a parent can legitimately exclude a child from his or her Will.

Michael Ames died in 2013. He left his entire net estate – which exceeded £1 million – to his widow, Elaine. Michael and Elaine had lived together for 33 years, and married in 2001. They ran a business together.

The...

TWM Solicitors has been nominated for an innovation award by The Lawyer magazine (the leading title in the legal market). The Lawyer Business Leadership Awards recognise and celebrate law firms and their staff that have made a vital contribution to their organisation in the past year. The category in which TWM is shortlisted is Innovation in Client Relationship Management...

A woman whose partner of eighteen years died, leaving her nothing in his outdated Will, has this week won a surprise victory in a bitter legal battle for his half of the home they shared. His estranged wife – the beneficiary of his Will – has been ordered to pay £100,000 worth of legal costs incurred in fighting the claim.

Joy Williams and Norman Martin lived together in...

When comedian Bob Mortimer went to the doctor with a suspected chest infection, he didn’t expect to be on the operating table five days later undergoing a triple heart bypass.

As well as coming to terms with what must have been crushing news, there were pressing practicalities he needed to address: Mortimer didn’t have a Will. Had he not sought medical advice and the worst had...

We are delighted with the news that Daniel Church has been elected President of the Surrey Law Society (SLS).  Daniel is a solicitor in our private client team.  He will represent the interests of member firms and their solicitors in Surrey, acting as a link with the national Law Society in Chancery Lane.  Daniel and his committee of...

We often see clients at a very difficult time in their lives. They may have recently suffered a bereavement or suffering from serious illness. It is at times like these that the stark reality of their mortality hits home and they are faced with making sure their affairs are in order. One of the pressing issues is the wish to make sure they have provided for family by putting a Will in...

It is a sad fact that each of us whose name is recorded in the register of births will, one day, be entered into the registry of deaths and it is a fair bet that neither one of us is likely to be an exception to this rule, so why is the subject so rarely discussed? Moreover, unless this subject is particularly poignant for you at the moment (in which case I am sorry), why are you already...

The case
When seventeen year old Heather Ilott eloped with her boyfriend in 1978, she probably did not foresee that her actions would be making legal history almost forty years later. Heather’s mother, Melita Jackson, never forgave her daughter for running away, even though Heather later married and had five children with her teenage boyfriend.

When Mrs Jackson made her Will in 2002 she...

A recent case which made the headlines is a reminder that unlike solicitors, not every provider of a Will is regulated and required to meet strict professional standards. It was Barclays Bank, in this instance: a reputable financial services provider authorised and regulated by the Financial Conduct Authority. However, Barclays’ Will writing division is a separate part of the business...

All good news?

The budget today announced new inheritance tax measures which had previously been heralded as enabling parents to pass £1m on to their children free of inheritance tax. This new main residence nil-rate band is in addition to the inheritance tax band available to every individual which is currently set at £325,000.

Looking at the detail more closely it should be made...

From 6th April 2015 any Non-Resident Individual, Trustee or Close Company will need to submit a Non Residents Capital Gains Tax Return (NRCGT Return) within 30 days of completion of the sale, when selling UK residential property.

It is worth noting that only the gain from 5th April 2015 will be chargeable but even where there is no gain to report, the NRCGT Return has to be submitted.

Gains on...

The Conservative Party general election manifesto will include a promise to add a transferable family home allowance of £175,000 to the inheritance tax (IHT) nil-rate band from April 2017.

This will be a new £175,000 per person transferable allowance for main residences if they are left to children or grandchildren. There is therefore a total potential allowance, for a couple, of...

   A recent Tax Tribunal decision has made it clear that the recipient of a lifetime gift from a person who subsequently dies can be held personally responsible for extra tax and penalties if they fail promptly to tell the executors administering the giver’s estate – a significant change from the usual position, which holds the executors responsible.

Inheritance Tax (IHT)...

Private Client is viewed by many as somewhat of an old fashioned legal services term, but it seems to have ‘stuck’ so far as solicitors are concerned.

Perhaps a more descriptive and accurate phrase, albeit less punchy might be ‘family and wealth protection’.  It certainly sums up nicely what our team is about.

This encompasses areas including:

• Wills
• Powers of...

As people live longer, issues surrounding dementia continue to increase.  As is so often the case, early advice is the best advice according to Allison Crossman.

1.     How does someone set up a legal power of attorney if they think they’ll be a time they can’t handle their own affairs?

They would need to create a Lasting Power of Attorney (LPA) to appoint...

The year’s Autumn Statement contained some significant announcements in areas of personal tax and estate planning. Indeed, whilst Autumn Statements have taken the place of pre-budget reports since 2010, this one seems more akin to a mini-budget.

We’ll be producing separate posts covering in more detail the areas outlined below. However, included here is an overview of the main...

HMRC has withdrawn form R27 as from 13^th October 2014. Form R27 was for use in calculating the tax reclaim or payment due following a person’s death. HMRC said that a disproportionate amount of the calls to its helpline related to the form. In addition they were aware that the form placed a ‘heavy burden on the Personal Representatives’ as HMRC ‘could not deal with...

At the recent Conservative Party Conference in Birmingham, George Osborne announced the abolition of the 55 per cent tax levied on unused parts of a “drawdown” pension pot at death. The new tax rules will apply to all payments made after April 2015.

This significant change means that pensions should be considered carefully as part of inheritance planning. The current maximum that...

Scotland has voted to remain part of the United Kingdom, but Scots can still expect significant changes in the taxes they will pay, and the welfare benefits they will receive, as soon as next year.

There are currently three central government taxes devolved to the Scottish government – a landfill tax; a land and buildings transaction tax (to replace stamp duty land tax from April 2015);...

The Inheritance and Trustees’ Power Bill received Royal Assent on 14 May 2014, becoming the Inheritance and Trustees’ Power Act 2014 (“the Act”). The changes are due to come into force in October 2014.

The Act, among other things, makes changes to the rules that apply where someone dies without leaving a will. These...

David Cameron’s biggest ministerial re-shuffle to date has had ramifications in the legal world.

Jeremy Wright MP is to replace Dominic Grieve as Attorney General. Wright, who practiced as a barrister and has been an MP since 2005, was appointed as a junior justice minister in 2012. Grieve had previously been tipped for the role of Attorney General but the Law Society Gazette reports...

HM Revenue & Customs (HMRC) are currently consulting on proposals which would allow them to recover monies due in tax directly from bank accounts. The plans caused serious concern amongst the MPs on the Treasury Select Committee.

Lin Homer, chief executive of HMRC, said that such recovery would only be made in extreme circumstances and would...

‘Citizens Jury’ calls for the tax system to be simpler and clearer 

A “citizens’ jury”, set up by consultancy Britain Think for accountancy firm PricewaterhouseCoopers has called for far greater simplicity and transparency in the tax system.

The jury was said to be broadly representative of the nation’s...

 By Duncan Mitchell-Innes, Senior Associate in Private Client at Wimbledon.  

The Care Act 2014 (CA 2014) will come in to effect in April 2015. The Department of Health is currently consulting on draft regulations and guidance to implement the various reforms that the CA 2014 deals with. 

On 6th June 2014, a consultation was...

By Duncan Mitchell-Innes, Senior Associate in Private Client at Wimbledon.  

HM Revenue & Customs (HMRC) is currently proposing that each person will have a 'settlement nil-rate band' in addition to their standard nil-rate band (NRB) for inheritance tax (IHT).

 The plans are an adjustment of its proposal last year that a...

Shared ownership is a gateway to ownership of a property where you are unable to afford the full cost of purchasing a property. With Lloyds Banking Group recently pledging £6.5billion towards helping first time buyers in 2013 and lenders now beginning to be prepared to lend up to 90% of the value of a property according to a report from...

Most people are aware that they can make a Lasting Power of Attorney to appoint someone to act on their behalf in relation to their property and finances, but fewer are aware that you can do the same in relation to your health and welfare.

From October 2007 you are able to give legal authority to the person who you wish to act on your behalf to make decisions on any issue which relates to your...

Thanks to a recent government initiative, by leaving 10% of your net estate to charity through your will, you can effectively reduce the inheritance tax bill on your entire estate.

As from the 6th October 2012, it is now the case that if you leave 10% of your estate to charity, inheritance tax will be calculated at 36% instead of the usual 40%.

An interesting point is that if you are currently...