Making a Will

Too many people assume that the law will provide for their loved ones in the event of their death, and that Wills are complicated. In fact the law of intestacy (which applies if a person dies without making a Will) is itself complex and will often have undesirable results. Making a will is straightforward.

Lasting Powers of Attorney

A Lasting Power of Attorney confers authority on someone else to take action on your behalf, for instance if you are too ill or infirm to deal with your own affairs. We can help prepare one for you.

Tax Advice and Estate Planning

Inheritance Tax was once something only the very wealthy had to consider but now it affects far more people. Careful tax planning can help make the most of your available allowances.

Dealing with an Estate

When someone passes away, it is often difficult to know what to do, who to contact, and how to wind up their affairs. We at Widdows Mason make the process of 'Estate Administration' easier for all concerned.

For more information contact Janet Calvert.

Making a Will

People today organise their lives differently from the more formal relationships expected in the past, and the law has not always kept pace with changes in society. The result can be that whilst relationships are comfortable and natural to the participants they are not recognised and treated by the law in quite the same way.

The general rules in relation to survivorship favour husband and wife couples and the children of their relationships. Even in those relationships the law may sometimes produce a less than ideal outcome for the distribution of a person's estate. If no Will is left, an intestacy arises and the law sets out who is entitled to benefit and to what extent. Many people would be surprised to learn, for instance, that a surviving spouse will not necessarily be entitled to the whole of his or her deceased spouse's estate. Complicated legal structures may be created by operation of law, creating confusion at an already difficult time.

Every adult should think about making a Will, to set out in writing what he or she wishes to happen when they are no longer around. Careful consideration should be given to the assets that they hold and who in the event of their death they would like to benefit. Even those who have already made a Will should revisit the issue on a regular basis. Marriage, separation, divorce, bankruptcy, illness and changes in tax laws should be considered as life events prompting the need for a review of existing Will provisions.

Widdows Mason can assist you in tailoring a will to your specific needs and circumstances, bringing in financial advisers and tax experts where appropriate.

For more information contact Janet Calvert.

Lasting Powers of Attorney

Lasting Powers of Attorney (LPAs) are formal legal documents that confer authority on one or more other people who you wish to deal with your affairs on your behalf. They are intended to continue in force even if you subsequently lose your capacity and can relate to property and affairs as well as to personal welfare issues.

The law on Powers of Attorney was revised in October 2007, with the coming into force of the Mental Capacity Act 2005. The old 'Enduring Powers of Attorney' (EPAs) were replaced by the new 'Lasting Powers of Attorney', although EPAs entered into previously will remain valid. The new Lasting Powers are more complicated and have to be registered at the Court in order to be valid.

The person who grants the power (called the Donor) can select one or more persons to act as Attorney. If more than one is appointed it can be specified whether each Attorney can act independently of the others (jointly and severally) or if they have to act all together (jointly). There are now separate Powers which relate to 'Property and Affairs' and 'Personal Welfare'. In the case of Property and Affairs the Donor can decide to limit the Power to specific property, or can specify that it relates to all his or her property and affairs. The Donor is also free to impose restrictions, for instance if he or she does not want the Power to come into force until they are no longer in a position to manage their affairs, this can be specified. Personal Welfare Powers can cover such issues as medical treatment and social welfare concerns.

We can help you comply with the necessary formalities, and are pleased to offer home visits as well as office appointments for those of our clients who require them.

For more information contact Janet Calvert.

Tax Advice and Estate Planning

When someone dies, their estate may be liable to Inheritance Tax.

By careful planning, and making sure thall all available allowances and reliefs are utilised, the tax bill could be reduced or even eliminated.

The principal means of planning for inheritance tax is by making a will and leaving gifts within the applicable nil-rate band, but you also need to know about the possibility of making lifetime gifts to reduce the value of your estate.

Transfers between husband and wife are exempt from Inheritance Tax, and until recently a failure to leave gifts to a non-exempt beneficiary essentially wasted the available nil-rate band; if everything was left to your spouse there may have been no Inheritance Tax tax to pay on the first death but the survivor had the whole of the joint estates in his or her possession and this often led to a large tax bill on the second death. This changed in October 2007 when the new 'transferable nil rate band' was introduced, allowing the unused portion of the first spouse to die to be transferred to the survivor.

If inheritance tax is still likely to be an issue but there are insufficient assets for gifts to be made during lifetime or to non-exempt beneficiaries on death, you can consider creating a discretionary trust. This is a complex legal structure and requires specialist advice. Put simply, Trustees are appointed in the Will and are responsible for dealing with the property which is placed in the trust for the benefit of named beneficiaries. The Trustees have an absolute 'discretion' as to how to deal with the property they are administering and because the beneficiaries are not absolutely entitled, the available nil-rate band is used up. Nonetheless, a degree of control is retained over the property concerned - as it is held by the Trustees - while still being able to benefit those who will continue to require support.

For more information contact Janet Calvert.

Administration of an Estate

Where a death has sadly occurred Widdows Mason can assist in obtaining a Grant to the Estate of the Deceased, which is an order of the Court empowering the Executors or Administrators to wind up the Deceased's affairs.

Executors will have been appointed by the Deceased in his or her Will, and this will lead to the issue of a Grant of Probate. Administrators will be appointed where the Deceased did not leave a Will, or where any Will does not appoint Executors, or where the Executors are unable or unwilling to act, for instance because they have already died or because they choose not to accept the job of Executor. In this case the Court will issue a Grant of Letters of Administration.

In some cases, for instance where the value of an Estate is low, or where most or all of the Deceased's assets were held jointly with another person, a Grant may not be required. We can advise you on the best way of dealing with matters, to achieve the outcome you require as soon as possible, and if a Grant is required who should make the application.

In each case where an application for a Grant is to be made to the Probate Court, we will complete the necessary Inland Revenue form and arrange for any Inheritance Tax to be paid. Once the Grant has been issued we can deal with the collection of the Deceased's assets, the discharge of any debts and distribution of the estate to those entitled under the will or, if there is no Will, under the rules of intestacy.

We will also consider with you whether any saving of Inheritance Tax is possible by means of a 'Deed of Variation'. Such a deed could alter the way the Deceased's assets were distributed to make the best use of his or her individual Inheritance Tax exemption.

For more information contact Janet Calvert.