Seven out of ten parents in Yorkshire have no legal guardian in place to care for their children in the event of their deaths

Research commissioned by SFE (Solicitors for the Elderly) and Ware & Kay Solicitors shows 67% of parents in Yorkshire have no legal plans in place to make sure their children are looked after, should the parents die. According to the research, parents in the region are almost completely unaware of the risks of not identifying a legal guardian in a will. Only one out of ten of parents understand that social services or the courts can step in to decide what happens to your children if you don’t have a will in place. SFE, a membership body of over 1,700 UK solicitors specialised in advising people planning for the future, is calling on parents to make sure they have an updated Will in place ahead of Update Your Will Week 2023 (23rd – 29th January). Sian…

Granny’s Bank Account has had large withdrawals! What do I do?

Was the recipient Granny’s attorney, or gardener? Attorneys receiving gifts from individuals who appointed them their attorney, need to be very careful. Did the individual donor receive competent, independent legal advice, before making the gift to the attorney? Mistakes are sometimes made which might give opportunities for recovery of funds from the attorney. Antagonism can result when a social worker, an executor, or beneficiary, discovers the gift when viewing the individual’s bank statements. Often there are suspicions the individual did not consent to the gift to the Attorney and reporting the matter to the Office for the Public Guardian may not necessarily result in assistance.  A common reaction is to contact the Police, who might not always assist, depending on the facts. If a close relative, say son or daughter, was the recipient of the gift…

Seeing the wood for the trees on investment

Can you help the environment and save some tax? Laura Schofield from Ware & Kay Solicitors considers inheritance tax planning and woodlands. Brief inheritance tax position Inheritance Tax is a tax on the estate of someone who has died. Inheritance tax can be complex but the rate of tax is 40%, above the ‘nil rate band’ on which there is no inheritance tax to pay – this band depends on the individual’s family circumstances and assets.  Example       Bob has never married and has no children.  When he dies, his estate is worth £1,500,000.  £1,500,000 less £325,000 = £1,175,000 subject to IHT @ 40%  = £470,000 tax to pay However, on top of the nil rate band there are other reliefs and exemptions that can, with careful planning, be used during lifetime or in a Will to…

Inheritance Tax Planning and Woodlands - seeing the wood for the trees!

Can you help the environment and save some tax?  Emma Elwess considers inheritance tax planning and woodlands. Brief inheritance tax position Inheritance tax can be complex but the rate of tax is 40%, above the ‘nil rate band’ on which there is no inheritance tax to pay – this band depends on the individual’s family circumstances and assets.  Why woodlands? Investing in woodland, or reviewing what you do with your existing woodland, can be a useful estate planning strategy – leaving more for you to pass to the next generation. Is it a business? Woodland may qualify for Business Property Relief if commercially owned and managed as a business. Examples of businesses that could qualify include woodland used for camping, fishing, or where the timber is being generated for sale – even if a sale may…

Legacies and Wills – what are the risks?

Many of us like to include legacies in our Wills whether to family, friends, executors and /or to charities. Legacies can be general (often fixed sums of money) or specific (particular assets you own such as a house, items of jewellery or a share in a business.) On the face of it, including a legacy in a Will seems very straightforward. However, there are numerous issues which should be considered, some of which could result in beneficiaries losing out or even unintended inheritance tax consequences! Some areas to consider are as follows: 1. Fluctuating asset values. In the context of property and investments, values can fluctuate dramatically. The values might be significantly higher or lower at your death as compared to when you made your Will. If the same beneficiary inherits your entire estate, this isn’t…

Why a Will is important

Surveys suggest that between 50% and 60% of adults in the UK have not made a Will. This means that a significant part of the population are relying on the intestacy provisions (the rules which govern the distribution of your estate if you have not made a Will) to distribute their money, property and possessions as they would wish. This will not always be the case. Writing a Will gives you control and allows you to choose not only who receives your estate but who will be responsible for carrying out your wishes. A Will can do much more and can be used to appoint guardian(s) for your children, protect vulnerable beneficiaries, benefit charities and, depending on the circumstances, stop you from paying more inheritance tax than you need to. It also prevents the arguments which…

Charitable giving and reduced rate of inheritance tax

At present, gifts to charities in your Will are exempt from inheritance tax and would be taken off the value of your estate before inheritance tax is calculated. Leaving money to charity in your Will could also reduce the rate of inheritance tax you pay. The reduced rate of inheritance tax was introduced by the Government in 2012 in order to encourage people to leave money to charity in their Wills. If the estate qualifies, it reduces the inheritance tax rate which is charged from 40% to 36%. To qualify, at least 10% of your net estate (or baseline amount) must be left to a charity or charities. The net estate is, generally speaking, the value left after the inheritance tax nil rate band (which is currently £325,000 and frozen at that level to 2026 or…

Planning ahead with a Lasting Power of Attorney

According to the Alzheimer’s Society, there are almost 885,000 people living with dementia in the UK. Estimates indicate that between 5% and 20% of over-65s suffer from issues which may affect their memory and thought process. No-one wants to consider that they may lose the ability to manage their affairs but planning for this possibility by making a Lasting Power of Attorney is essential. Although it may be awkward, preparing for your future now gives you time to plan carefully and start conversations with your family and those that you trust about your wishes and goals There are two types of Lasting Power of Attorney (more commonly referred to as an LPA). One deals with property and financial decisions and one covers health and welfare matters. You can prepare either or both but both cannot be…

Making financial provision for disabled children

The risks with informal arrangements Families sometimes rely on informal arrangements as a way of making provision for their disabled children after their death.  For example, a parent may have made a simple Will specifying that another family member is to be the beneficiary instead of the child themselves, on the assumption that the third party will use the inheritance to benefit the child.  Unless a formal arrangement such as a Will Trust is created, there are many reasons why you may want to reconsider relying on an informal arrangement: Inheritance Tax. Depending on the size of the beneficiary’s own estate, there may be adverse tax consequences for them both in terms of receiving funds from your estate and subsequently making regular gifts to benefit your child. When the third party beneficiary dies, any inherited…

St Gemma’s Hospice Make a Will Month October 2021

Ware & Kay Solicitors has once again teamed up with St Gemma’s Hospice to give you the opportunity to have your Will written free of charge in exchange for a donation to the Hospice during the month of October. Why make a Will? We spend our lives working to provide for ourselves and our loved ones. As life changes around you, it is a good time to consider making your Will. Making your Will means you can be certain that your wishes are followed after your death. Making a Will is often seen as a very sensitive subject, one which many people prefer to put off until a later date. However, a professionally written Will can make life much easier for our loved ones when the time comes. A Will is the only way to make sure your money, property, possessions…