Do I really need a Grant of Probate?

If you are preparing to wind up the estate of a loved one, you may not need to apply for a Grant of Probate (or Letters of Administration) during the course of winding up their affairs.

It is a common misconception that when dealing with an administration of an estate, the Executors or Administrators will have to obtain a ‘Grant’. The Grant is required in order for Executors to access the deceased’s assets in order to quantify and ultimately distribute them; and the same applies to property. However, there are certain circumstances where there is simply no need to obtain this:

Article by Kagowa Kuruneri

• Where property is owned jointly, as joint tenants,
• Where other assets are owned jointly,
• Where the estate is a simple estate and does not exceed the Inheritance Tax threshold,
• Where the total value of bank accounts does not exceed £5,000*,
• Where the estate is insolvent.

It is important to note that there may be some parts of the estate that will require a Grant and parts that will not. The moment any asset requires a Grant, it must be obtained with respect to the entire estate, even if some assets have been released prior to attaining the Grant.

If you are unsure whether or not you need to obtain a Grant of Probate or Letters of Administration, or if you more information about Wills and Estates, contact us today via email or LinkedIn.

* Some banks and building societies have their own limits where they will be prepared to release funds without need for a Grant.

www.gardenhousesolicitors.co.uk

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Tel: 01992 422 128

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Email: info@gardenhousesolicitors.co.uk
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

Dementia Tax, what can be done about it?

Those with close family members faced with the prospect of requiring domiciliary or residential care, by now, should be well aware of the changes that will affect social care policy. The proposed manifesto will see our vulnerable having to pay for their own care fees if the combined total of their savings and property exceeds £100,000. Granted this raises care fee assessments from £23,250 but, with all things considered is this truly a saving when most assets are tied up in properties anyway? With the housing market as it is today, most people who own their own property will be tasked with paying for their own care fees should the need for care arise. Of course payment can be deferred until death, in which case the deceased’s estate would incur the burden of payment, meaning that leaving a healthy inheritance for the family may soon become a thing of the past. 

Article by Kagowa Kuruneri

Where domiciliary care was not an issue, its successor ensures that certain degenerative and debilitating diseases will attract care fee obligations and others will not, regardless of where care is provided. Does the discrimination between illnesses, geography and means serve any real benefit when the aim is to make care policies fairer?

The worry now is that in order to protect one’s assets or estate, those in need will shy away from much needed assistance until their circumstances are so dire that they require nursing care under the NHS. The other solution would appear to be transferring ownership of assets before care applications are submitted. However, setting aside the fact that it is unclear how such transfers will be treated under the new policy, there are Inheritance Tax provisions that could adversely affect your estate if certain conditions are not satisfied.

At best it is not yet clear whether there will be a way to receive care assistance without losing your property, diminishing the value of your estate, or putting your own health at more risk. However, if you would like to explore the options that are available which would reduce the blow delivered by the “Dementia tax” reach out to Garden House Solicitors today via email or LinkedIn.

www.gardenhousesolicitors.co.uk

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Tel: 01992 422 128

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Email: info@gardenhousesolicitors.co.uk
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

Are you thinking of making a living will?

What is a living will?

A living will (sometimes known as an advance directive) is a written statement detailing your wishes regarding health care and how you wish to be treated if you were to become seriously ill. Living wills come into force when you are no longer able to communicate your own choices and can be useful if you have not made a power of attorney. Living wills are legally binding under the Mental Capacity Act 2005. This means that as long as a living will is valid and applicable then any refusal to accept treatment set out within it is legally binding in England and Wales.

Please note that a living will is not the same as euthanasia, but a request in advance to doctors not to give certain life-sustaining treatments. 

Who can make a living will? 

Anyone who is aged 18 years or over and has the mental capacity to do so.

Does a living will need to be signed and witnessed?

If you are choosing to refuse life-sustaining treatment then this must be done in writing and both you and at least one witness must sign it.

How old do you have to be to make a will?

Since 1 January 1970 it has been possible for anyone aged 18 or over to make a Will.

Before that date, a Will made by someone younger than 21 years of age was not valid, unless it was a 'privileged Will' - i.e. one made by a soldier in actual military service or mariners or seamen at sea.

Article by
Sharon Brown

However, many people do not make a Will until later in life.  In the event that they died without a Will their estate would be distributed in accordance with the Intestacy Rules.

It is becoming increasingly common for family members to explain the importance of having a Will to younger generations, especially if they are intending to leave them money in their own Wills!

Two of the most common triggers for younger people to make wills is when they buy their first home or when they have their first child. For many people their home is their largest asset, and it is important to specify who that should be passed on to. Once a child is born people often want to ensure that in the event of their death the 'correct' person would be able to step in as guardian. Not everyone wants their parents to take on the role, or more commonly, they do not want their in-laws to take on the role! 

If you or someone you know need to discuss a Will please call me on 01992 422128 or email Sharon@ghslaw.co.uk 

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www.gardenhousesolicitors.co.uk

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Tel: 01992 422 128

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Email: info@gardenhousesolicitors.co.uk
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

Remember a charity in your will week, 7 – 13 September 2015

Chris and I were very pleased to support this year’s ‘Remember a charity in your will week’. The week aimed to increase awareness of the importance of charitable legacies, and encouraged more people to think about including a good cause in their Will.

Many of our clients like to include a gift to charity once they have looked after their loved ones. For some it is a chance to give back, perhaps to a medical charity who have supported them through their final years. For others, it is remembering a charity who helped look after a close relative during a difficult time, or simply a charity they believe to be a particularly good cause.

Inheritance Tax: Additional tax free allowance for homeowners from April 2017

It was announced in the Summer Budget last month that an additional nil-rate band will be available from April 2017.

The extra allowance will be exclusively available to estates where the deceased dies on or after 6 April 2017 and their residence is passed to one or more direct descendants. In other words, if your children, stepchildren or grandchildren inherit your home on your death, your estate will benefit from the additional allowance.

The additional allowance will be £100,000 in 2017/2018 and this amount will increase by £25,000 each tax year until 2020/21 when the additional allowance will be £175,000.

The current position is that when you pass away, the net value of your estate is calculated and everything over the value of the nil-rate band (currently £325,000) is taxed at the rate of 40%. This is subject to various exemptions and reliefs, for example anything left to a spouse or civil partner will pass tax free.

What are the implications of leaving somebody out of your will?

Article by Chris Lucas

In England and Wales, we enjoy the right of testamentary freedom, which is the right to make a will and leave your estate to whomever you wish. 

There is however an important law to consider before you decide to write somebody out of your will. This is the Inheritance (Provision for Family and Dependants) Act 1975 which will apply if you die domiciled in England and Wales. This law will enable certain categories of people to bring a claim against your estate if you do not ‘reasonably provide’ for them in your will. 

A recent ruling hit the headlines just this week, whereby a woman who was cut out of her mother’s will successfully claimed £164,000 from the estate, despite the fact that the will left the whole estate worth £486,000 to animal charities and the deceased had clearly expressed previously that she did not want her daughter to receive a penny of her estate.

Making substantial gifts to children: How this might affect their inheritance

Article by Chris Lucas

You may be interested to know that if you make a particular type of gift to one or more of your children during your lifetime, this could affect your children’s inheritance under the terms of your will.

The type of gift referred to here is known as a ‘portion’. A portion can be described as a substantial gift (usually of money) from a parent to a child which is made with the intention of establishing the child in life or making permanent provision for them.

A typical example of a portion would be giving one of your children a sum of money to be used as a deposit towards buying their first home. Whatever the gift might be, the key requirements for it to be considered a portion are as follows:

1. The gift must be from a parent (or a person acting in loco parentis i.e. someone who has assumed parental responsibility) to a child.
2. The gift must be substantial in value - what ‘substantial’ means will depend on the circumstances and can be open to interpretation, but generally speaking, any gift of £20,000 or more is most likely to be considered substantial.
3. The gift must have the effect of establishing the child in life or making permanent provision for them e.g. deposit for a first home or sum of money to enable the child to start up their own business.

If you have already made a will, then it is important to be aware of the potential effect of portions when you subsequently pass away. Essentially, any portions made during your lifetime after you have made your will can have the effect of ‘satisfying’ legacies left to your children under the terms of your will. This is known as the presumption against double portions.

Proclaim Case Management System

GHS has recently implemented the Law Society’s accredited Proclaim Case Management System which is streamlining a vast number of administrative processes, reducing turnaround times and increasing the quality of the service our clients receive.

We believe we need to stay ahead of the competitive legal market and by investing in this technology we anticipate providing an even better service to our clients. 

Jointly owned property – The benefits of including a Property Protection Trust in your will

If you own property with somebody else, you will probably be aware that there are two ways of owning property jointly: as joint tenants or as tenants in common.

‘Joint tenants’ means that the co-owners own the whole property together. If one co-owner dies, the whole property passes to the surviving co-owner(s) by survivorship. This tends to be the most common form of co-ownership.

 

‘Tenants in common’ means that each co-owner owns a share of the property. This might be in equal or unequal shares. When a co-owner dies, their share will form part of their estate and therefore pass under the terms of their will (or under the rules of intestacy if the individual has not made a will).

What is a discretionary trust?



Article by
Chris Lucas



A discretionary trust is a trust set up whereby the trustees are given discretion over the trust fund, typically with regard to the payment of trust money to one or more beneficiaires. 

Who are the legal owners of the trust fund?

The trustees are the legal owners of the trust fund which can comprise of any assets, such as money, land or buildings.

What 'discretion' do the trustees have? 

Normally, the trustees will be able to decide how to use or invest the trust assets in the interests of the beneficiaries and how the trust fund should be distributed between the beneficiaries if at all.  Quite often, the person setting up the trust will have prepared a 'letter of wishes' to the trustees setting out how they would like the trustees to exercise their discretion. The extent of the trustees' discretion will depend on the terms of the trust.

Why use discretionary trusts?

One reason may simply be to allow the trustees flexibility to pay different amounts of income or capital to different beneficiaries. This can be useful if the future needs of a beneficiary is not known; for example a grandchild who may require greater financial assistance in the future.

Discretionary trusts are also particularly useful if one or more of the beneficiaries are not capable or responsible enough to look after money for themselves.  Common examples of this include a child or adult beneficiary with severe learning disabilities. In relation to the latter, particularly where a vulnerable beneficiary is in receipt of means tested benefits, a discretionary trust will enable the trustees to pay money to that beneficiary as and when required in such a way that the arrangment will not affect the beneficiary's entitlement to benefits. This is because the beneficiary would have no beneficial right to the trust money, rather a mere chance that the trustees might exercise the discretion in their favour. The situation would be very different in the case of a bare trust, where the beneficiary would have an absolute right to the trust fund.

Will Writing Solicitors Hertford

Article by
Sharon Brown

Many people continuously put off making a Will - whether it's through lack of time or not wanting to consider their own mortality.  The vast majority of my clients who are making Wills tell me they have been meaning to get round to it for years.   

 

I pride myself on making the will writing process as painless as possible.  Many of my clients are surprised at how easy it actually is, and question why they ever put it off in the first place. 

 

Making a Will does not mean you are tempting fate or that you are going to pass away in the imminent future.  However, it does mean that you no longer have to worry about doing it, and that you can have the peace of mind knowing you have made things as simple as possible for those you eventually leave behind.

 

Please don't put off making a Will any longer.  Call me on 01992 422128 or email sharon@gardenhousesolicitors.co.uk to arrange a mutually conveneint appointment.  You can visit me in the office or I can visit you at home, and evening or weekend appointments can be arranged.

 

I look forward to meeting you soon!

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www.gardenhousesolicitors.co.uk

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Tel: 01992 422 128

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Email: info@gardenhousesolicitors.co.uk
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

Who Will Look After my Dog When I Die?

Article by
Sharon Brown

This is something nobody likes to have to consdier, but is a question I have been asked so many times by clients making their Will.  For many people, this is as important as deciding who will act as guardian for their children or who will get their money. 

If you have a spouse, close relative or close friend who likes animals you can simply ask them if they would take care of your dog should anything happen.  Some people to choose to leave a legacy to the person, as a way of saying thank you and to make sure that the person has sufficient money to pay for future vet bills. 

There are also a number of charities who offer free schemes whereby you can register with them during your lifetime and they will take care of your pets when you pass away.  Again, you may wish to leave a legacy to your chosen charity by way of a thank you. 

Will Aid 2012

We are pleased to announce that we will be taking part in Will Aid in November 2012.

Will Aid is an annual event across the country, where solicitors offer clients the chance to update an existing Will or make a new Will free of charge.  All we ask is that you consider making a donation to Will Aid, who support the work of the following charities:

• Actionaid
• Age UK
• British Red Cross
• Christian Aid
• NSPCC
• Save the Children
• SCiAF
• Sightsavers
• Trocaire

The amount you donate is entirely up to you, but Will Aid have suggested a minimum amount of £90 for a basic single Will or £135 for ‘mirror’ Wills (Wills for a couple).  

 

If you have an existing Will and wish to make a small amendment to it with a ‘codicil’ the suggested minimum donation is £40.

For more details of the scheme please see the Will Aid website.  If you have any questions or would like to make an appointment please telephone 01992 422128 or email Sharon Brown – Sharon@gardenhousesolicitors.co.uk

Appointments are available throughout November but are booking up fast.

www.gardenhousesolicitors.co.uk

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Tel: 01992 422 128

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Email: info@gardenhousesolicitors.co.uk
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

Can my Spouse Change Their Will After I Die?

Article by
Sharon Brown

The simple answer to this question is yes.  A Will is an individual document, which can be changed at any time (provided the testator has capacity to do so).

However, if two people have made “Mutual Wills” they have agreed not to amend their Will without the consent of the other person.

Many people confuse Mutual Wills with Mirror Wills, which is the term given when two people make very similar Wills at the same time, for example, everything to their spouse followed by their children.

What is a Mutual Will?

A Mutual Will is when two or more testators (the legal name given to someone making a Will) make separate Wills or a Joint Will, and agree to give each other reciprocal benefits.  Alternatively, they can agree to confer benefits to the same named beneficiaries. 

For Wills to be mutual, there must be an express agreement between the two parties that both Wills will remain irrevocable and unaltered.  Normally, this agreement is incorporated into the Wills so as to avoid confusion and problems at a later date.

What is the effect of a mutual Will?

If one testator dies, and the deceased testator had not revoked or altered his Will then the surviving testator will be bound by the mutual Will.  They will hold the property and assets of the deceased person “in trust”.  If they try to revoke or alter their own Will, they would be committing fraud and a Court would be unlikely to grant permission for the change to be made. 

Can I Leave Money to Charity in my Will?

Article by
Sharon Brown

In one word, yes!  However, before you make any changes to your Will, or indeed set about making a new one it is important to seek advice to ensure that your intentions are recorded correctly else your wishes may not be met when you pass away.

Before proceeding, I recommend that you consider the following points:

Free Wills Storage



Article by
Sharon Brown

Here at Garden House we believe in giving you the best service possible.  We are happy to store your Will in our safe storage facility free of charge for your lifetime.  This gives you the peace of mind that no matter what happens, your Will can be found when it is needed.   

Are you currently paying for storage?

If so, you needn't be!  Regardless of who prepared your Will, we are still happy to store it free of charge for you.  At the same time, why not take advantage of our free Will review service?  That way you can be ensure that the document being looked after still meets your current needs and circumstances.

Statutory Wills

Craig Ward

Where a client lacks mental capacity sufficient to create a will, a statutory will may be created on their behalf through the Court of Protection. This entails making an application to the court and asking them to execute a will. The application may be made by an authorised person, such as and attorney (acting under a lasting power of attorney), a deputy, or someone entitled to receive a benefit under the will. Once a statutory will is executed by the court this acts in the same way as a regular will drafted by a client.

Will Aid 2011 Update

Article by
Sharon Brown

We are pleased to announce that by taking part in Will Aid during November 2011 we raised the sum of £4,925.00.  Clients from Hertfordshire, Bedfordshire and Essex participated in the scheme and had free Wills prepared.

We would like to take this opportunity to thank each of our clients who took part in the scheme and helped raise such a significant sum for the charities involved.

Will Aid distributes the funds between the following charities:

     

• Actionaid
• Age UK
• British Red Cross
• Christian Aid
• NSPCC
• Save the Children
• SCiAF
• Sightsavers
• Trocaire

If you require any assistance with your Will please contact Sharon Brown on 01992 422128 or Sharon@gardenhousesolicitors.co.uk

http://www.gardenhousesolicitors.co.uk/

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Tel: 01992 422 128

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Email: info@gardenhousesolicitors.co.uk

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.