What is probate?

It's difficult enough to deal with a loved one's death. Additionally, organising their funds can be a difficult and drawn-out procedure. The executors designated in the will to carry out the deceased's wishes need legal custody over their assets, which is referred to as probate. In order to acquire access to the bank accounts of a deceased person and organise their property and goods. According to official statistics, approximately 250,000 petitions for probate are filed each year in England and Wales. What is probate? Executors are given access to a decedent's assets and the authority to distribute them through the legal process of probate, also known as estate management. The phrase "estate" refers to all their assets, including real estate, cash, and personal belongings. The personal representative is the individual who has been granted probate. Do…

I’ve had a Dementia diagnosis, what should I do?

Alzheimer’s Research UK estimates that 944,000 people are living with dementia in the UK, with one in six people aged 80 and over at risk of developing dementia. It’s therefore likely that we’ll be affected by dementia, either directly or via a family member at some point in our lifetime. A dementia diagnosis can be devastating for a family, and understandably it takes time to fully digest the implications it brings. However, there are a few things that should be considered as soon as possible by the person receiving the diagnosis: Your papers – ensure all of your financial papers are in order and that your family know where everything is. Lasting Powers of Attorney (LPAs) – you should put in place LPAs. LPAs are documents which allow you to give authority to people you…

Have you planned for later life?

Wills Without a Will, your assets will be distributed according to the ‘intestacy rules’ i.e. the law dictates where your estate goes to on your death. The result might be that your estate doesn’t go to the people you want it to. By making a Will, it enables you to decide what happens to your assets on your death and can also include: any funeral wishes you may have; any specific items you wish to pass on, such as jewellery; any gifts of money you wish to make to family, friends or charities; If you have children under the age of eighteen, who you would like to look after them in the event of your death. It is really important to discuss your requirements with a professional so that they can consider your…

A record amount of charity donations were included in Wills in 2022

According to recent data, 2022 saw a record amount of bequests to charities. Of the 231,582 wills that Smee & Ford handled, 36,992, or nearly 16%, contained a gift to a charity. The overall amount of charitable estates was higher than Smee & Ford's forecast of £20 billion from September, coming in at £21.3 billion, the highest amount ever. The total number of individual bequests within charitable estates awarded probate in 2022—123,298 in England and Wales—was also the highest amount ever recorded. Over half of all legacy revenue in 2022 came from high-value bequests worth over £100k, with 31% of bequests valued at over half a million pounds and another 22% coming from bequests valued between £100-£250k. “It is encouraging to see that 2022 was another strong year for legacy income and that the number of…

What will happen to our shared property if my partner passes away?

While purchasing a home with your partner can be an exciting prospect, it's important to consider the legal ramifications, especially in the case that one of you passes away. If you are not a lawyer, it is especially crucial because there is a lot of legal jargon that could make things complicated to understand. Ex-judge and author, Stephen Gold has spoken at length on the matter. He said: If you are joint tenants, when one of you dies during ownership, their interest automatically passes to the other - which could mess things up. For example, your Will may have gifted your interest to your children. That won't count. But if you own as tenants in common, you are each free to gift your interest to a third person although you can still gift to the other…

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…