Court of Protection Solicitor Cardiff Barry and South Wales

New Inheritance Tax Rules for 2017

New Inheritance Tax rules come into force next year.

A new Residence Nil Rate Band (RNRB) will be available for deaths after 6th April 2017; this means that property, or an interest in a property, ‘closely inherited’ attracts an additional nil rate band of £100,000 (in 2017/18) rising by £25,000 each tax year until it reaches £175,000 in 2020/21. This will be in addition to the ordinary nil rate band of £325,000 which will be frozen.

The new rules are rather complex, and whether you will attract the additional RNRB of £100,000 will depend on whether you qualify under the meaning of ‘closely inherited’, and whether the property that qualifies is your residence.

We would recommend that your Wills are revised to ensure that your beneficiaries will have the benefit of the additional RNRB.

Should you require any further information please contact us on 01446 721000 or mail@passmores.com.

Will and Probate Solicitors Cardiff and Barry

WILL DEAL

Should we receive instruction from you in the month of May to undertake your conveyancing, you will have the option of having a Will drafted at a DISCOUNT rate.

Single Will: £120.00 inclusive of VAT

Mirror Wills: £150.00 inclusive of VAT.

 

Terms and Conditions

Your use of this promotion is governed by the following T&Cs:

1. You must have instructed us in the Conveyancing of your property and paid our fees for this service in full. The Will shall be drawn up after the completion of the conveyancing transaction.

2. This offer is available to simple Wills only. We reserve the right to refuse instruction for the drafting of complex Wills under this offer; such Wills will be liable to a further charge. This will be clarified at your initial appointment.

3. Conveyancing means “ sale, purchase, remortgage, transfer of equity

 

Change of marital status and the rules of inheritance

The Daily Mail (link below) has highlighted the risks faced by co-habiting couples who do not up-date their Wills when their marital circumstances change.

There is a common misconception that couples who live together but are not married automatically have the same rights as those couples that are married or in civil partnerships. This is, unfortunately, not the case and those in long-term, committed, relationships should ensure their Wills are up-to-date to guarantee their wishes are carried out.

In the case highlighted by the Daily Mail, a grandmother had to make an application to the court under the Inheritance (Provision for Family and Dependants) Act 1975 for ‘reasonable financial provision’ following the death of her partner.

In this case, despite being in a long term, committed, relationship for eighteen years, the deceased had not initiated divorce proceedings against his former wife. In addition to this, the deceased had not up-dated his Will prior to his death in 2012.

As a result, the deceased’s estranged wife became entitled to his assets upon his death; this included owning a half share in the home shared by the deceased and his partner.

Luckily, in this case, the courts found in favour of the deceased’s partner and awarded her the deceased’s share of the shared home. However, this was not granted until after an application was made to the courts costing the parties £100,000.00 in legal fees.

We here at Passmores are able to advise you on the complexity of the laws of inheritance, Will drafting, and divorce which you may need to prevent this scenario happening to you or a loved one.

Please contact us on 01446 721 000 or mail@passmores.com for more information.

http://www.dailymail.co.uk/news/article-3449654/Grandmother-lived-partner-18-years-wins-court-battle-stop-share-335-000-house-passing-wife-never-divorced.html

Government cuts to Legal Aid for domestic violence sufferers ‘legally flawed’

The Court of Appeal has declared that Government changes to the rules which allow victims of domestic abuse to obtain legal aid are legally flawed.

The changes, introduced in 2013 by former Lord Chancellor and Justice Secretary Chris Grayling were introduced as part the Legal Aid, Sentencing and Punishment of Offenders Act 2012. The Act stipulated, for example, that an application for legal aid could only be made if evidence of domestic violence had been given within a two year period. Such changes have now been ruled invalid.

This judgement will now be considered by the Ministry of Justice.

What is a Lasting Power of Attorney?

A Lasting Power or Attorney (LPA), is a legal document in which you can appoint one or more persons to act on your behalf (an Attorney). They continue to be legally enforceable should you lose mental capacity.

There are TWO types of LPAs which you can apply for:

(1) Health and Welfare – this allows you to appoint people to make decisions about anything that relates to your personal welfare.

(2) Property and Financial Affairs – this allows you to appoint people to make decisions about your property and finances.

When making an application to obtain one of the LPAs above, you should have regard to the following:

(1) Who can / should you appoint as an Attorney?

(2) Should you appoint a replacement Attorney?

(3) How should the Attorneys act?

(a) Jointly?
(b) Jointly and severally?

(4) Would you like to give your Attorneys any guidance?

Such an application for an LPA can highlight a range of questions and queries that you can and should get expert advice on.

We here at Passmores Solicitors are fully qualified to guide you through the process to ensure your needs and wishes are appropriately catered for.

Please feel free to contact our Miss Carli Evans on 01446 721 000 or ce@passmores.com for more information.

Stamp Duty Reforms

From April the government is set to introduce new rules to increase the stamp duty liability for second home owners.

The new rules are set to apply to purchases for buy-to-let, holiday homes, or second properties. Only houseboats, caravans, homes under £40,000.00, and other limited transactions are exempt.

The details of the policy are set to be published in the 2016 Budget on 16 March 2016.

The consultation paper published in December has suggested that from April, landlords (second homes owners) will have to pay:

3% duty for the first £125,000.00

5% on the amount between £125,001-£250,000.00

8% between £250,001.00 – £925,000.00.

Watch this space for full details which will be published in the budget this spring.