As an Executor or Personal Representative, dealing with Probate and an estate comes at an already difficult and sad time. It can be a time consuming responsibility. We can help you. We can look after all aspects of the administration of an estate on your behalf, that can all too often become a minefield of problems and we will liase with you throughout it all.
Based in Failsworth Manchester, our office has the benefit of free parking and disabled access. You will receive a warm welcome.
However, we also offer home visits and a free initial consultation in your own home at a time that is convenient for you.
Call now on 0800 294 306 for advice and further details or email jo-ann.mason@wesolicitors.com
Personal representatives under pressure on house valuations
“The extensive powers now available to HM Revenue & Customs pose a serious financial risk to lay executors who make honest mistakes when getting a house valued”, commented STEP chief executive David Harvey. “That is yet another reason why personal representatives should retain a qualified practitioner to help them administer an estate of significant value or complexity.”
Last year HM Revenue & Customs challenged nearly ten thousand probate valuations of land, raising an extra GBP70 million of inheritance tax charges.
The exact number of disputed valuations was 9,368, according to official figures. Where a challenge was brought, the resulting re-valuation raised the house’s estimated value by GBP24,600, say tax advisers UHY Hacker Young.
But HMRC’s new enforcement powers are also encouraging it to crack down on alleged under-valuations for probate. The agency is now asking personal representatives how much care they took when getting an independent valuation. The implication, says UHY, is that penalties may follow where “reasonable care” was not taken with the valuation. If HMRC decide it was not, the estate and its beneficiaries could end up having to pay penalties of 30 to 100 per cent of the additional tax liability, on top of the additional tax due. This could be a considerable sum for some estates with a relatively small cash component, says UHY tax partner Mark Giddens.
Estate administrators are advised to get several probate valuations, usually including one professional survey. But that may not satisfy HMRC, who consider that the PR also has a duty to draw the valuer’s attention to specific features of the property that may affect its price.
National Recognition for WE Solicitors
WE Solicitors has met the strict criteria set out by APIL (Association of Personal Injury Lawyers) to gain corporate accreditation status. The firm can now display the APIL logo as a mark of its expertise and dedication to finding justice for people injured through no fault of their own.
Steven Evans, Managing Partner who has also been accepted as a Fellow of the Association of Personal Injury Lawyers said “We’re very proud to be recognised by APIL in this way,”
“When someone is suffering with an injury or work related illness they can feel incredibly vulnerable and may have little knowledge of the personal injury system. It’s comforting for them to know their lawyer has credentials and abides by APIL’s code of conduct, which means their pursuit of fair redress will be handled with the utmost professionalism.”
- The Association of Personal Injury Lawyers (APIL) has been fighting for the rights of injured people for more than 20 years. A not-for-profit campaign organisation, APIL’s 5,000 + member lawyers (mainly solicitors, barristers and legal executives) are dedicated to changing the law, protecting and enhancing access to justice, and improving the services provided for victims of personal injury.
- Visit APIL’s website at www.apil.org.uk.
23 May 2011 – STEP Journal
The Treasury’s Office of Tax Simplification has begun a review of small business tax administration.
Earlier this year, the OTS identified tax as a key source of uncertainty and complexity for small businesses.
However, the OTS will not have a free hand. Exchequer secretary David Gauke, in a briefing letter on 9 May, told the OTS that abolition or even suspension of the IR35 contractors’ tax regime is not an option.
IR35 is widely resented by small businesses, especially consultancies. But despite pre-election promises of reform by the Conservatives, the Treasury has been unwilling to come up with a replacement package. “There is no easy answer”, said Gauke in his letter.
Instead HM Revenue & customs will “overhaul the administration” of IR35 – in particular, targeting compliance activity by restricting reviews to high-risk cases.
Also, the promise to integrate income tax and national insurance contributions has been abandoned.
The OTS will deliver its recommendations to the Treasury in time for Budget 2012 – which, given the government’s new policy of full consultation on tax reform, probably means October this year.
See how WE Solicitors, Ivy Mill Crown Street Failsworth Manchester M35 9BG can help you.
WE Solicitors help small businesses plan for the future. Call 0870 165 9413
Many disabled people fear that changing the law to allow assisted suicide would create pressure on them to end their lives prematurely, according to a survey by the charity Scope.
Coincidentally, next week is Dying Matters Awareness Week, aimed at ‘encouraging people to start conversations about dying and death and to discuss the type of end of life care that they would want.’
As reported in The Telegraph
Why Everyone should have one.
A client came to WE Solicitors to make a Lasting Power of Attorney after reading the following article.
Taken from the Police the National Association of Retired Police Officers Magazine. A reader wrote in to tell her story as follows:
“The article about Lasting Power of Attorney in the November issue of the magazine. I wish someone had told me about it I will tell you why it is essential and how it affected me.
My nightmare began when my husband, a retired Chief Inspector in the RUC aged 64 had a DVT in his brain in an aeroplane on the way to visit Australia. When we finally were able to travel home he was admitted into a psycho-geriatric hospital for treatment.
Everything we owned was in joint names, the car, our house, investments and bank accounts. By doing this we thought that we were safe.
How wrong we were!
I must have been in a state of nerves and anxiety and I have no idea how it happened, but the Court of Protection took over our lives. I had never heard of it and when someone telephoned to tell me that all our accounts had been closed and I could no longer write any cheques or draw any money I was horrified. As I said, we thought all was safe money wise. I had nothing.
Old age pension did not come until my husband was 65 and therefore I got none either. I had a teachers pension but that was in the joint account and I had no access to it now. I was told that I would be given a cheque to pay for my husband’s necessities and nursing home fees and it would be topped up as necessary. I was to send receipts for everything I bought for him. The cheque came and I was told to open a receiver’s account in my name as receiver for my husband.
The bank tellers did not seem to know what to do and after four banks refused to help I went into bank number five in tears. The sympathetic manager, when I explained what was needed, opened the account for me and one hurdle was crossed.
The next problem was to open an account in my own name for my pension to go into, but it takes time and the pension was put into the now Court of Protection account before I could stop it.
Another month with no money.
The car was bought with our joint account cheque, I was allowed to keep it and was given free car tax, which helped, but I was told that it was only to be used for the benefit of my husband i.e. hospital visits and shopping for him. I did mine at the same time!
The car was bought with our joint account cheque, I was allowed to keep it and was given free car tax, which helped, but I was told that it was only to be used for the benefit of my husband i.e. hospital visits and shopping for him. I did mine at the same time!
It took quite a few months before the cheque for my half of all monies came from the court and life was difficult to say the least in the meantime.
After about 2 1/2 years my husband died. I went to contact my solicitor to tell her of his death and to ask for his will and for the address of the Court of protection that I could tell them too. The solicitor told me that she would do it for me and named her price per hour for the work. By this time, with nursing home fees I was very hard up, so told her that I would do it myself if she would be so kind as to tell me the address of the Court of Protection.
She looked at me and said ……. wait for it! ” Mrs Smith, I spent four years learning how to be a solicitor, I give nothing away”. After I had dried my tears, remember my husband had died that morning. I summoned what dignity I could gather and went straight to the Citizens Advice Bureau. Where I was given the address and sympathy.
It took quite some time for the Court of Protection to settle our affairs and to send me the cheque for the remaining part of the money that had not been used for my husband’s care, but there was no interest given. When I asked for the interest I was told that it had been used for court charges plus an extra £61. I never knew who they were protecting, it certainly was not my husband, as I did all for him, and it was not me.
So! Please, please, anyone who has not got power of attorney get it and save yourself money and heartbreak. I only wish someone had told me about it sooner. Also, it is a good idea of everyone over the age of 60 to have an account in their own name to fall back on in times of emergency like mine”.
Thank you for taking the time to read Mrs Smith’s Story. Do not let this happen to you. Make a Lasting Power of Attorney. Book an appointment today.
For a Free Consultation please ring 0880 294 3065
Or email jo-ann.mason@wesolicitors.com
People do not want to leave money to charities in their will despite government incentives of paying less in inheritance tax.
http://www.ftadviser.com/FTAdviser/Regulation/TaxationAndTrusts/IHT/News/article/20110404/393b806c-5e8b-11e0-8dea-00144f2af8e8/Research-shows-little-interest-in-charity-will-initiative.jsp
The public are being warned to beware of fake e-mails purporting to come from probate research companies offering to trace their entitlement to unclaimed estates.
http://www.lostkin.co.uk/Pages/Pages.aspx?id=f77a2913-d9fd-4cf9-9df9-a1bb0881ef0b
If you have received an email from a Genealogist Company you can contact WE Solicitors, Ivy Mill Crown Street Failsworth Manchester for further advice. An initial half hour consultation is free. Please contact Jo-Ann Mason on 0161 683 3191
http://www.dyingmatters.org/documents/Leaflet_9_Web.pdf
Dying Matters has published a Put your House in Order leaflet which aims to prompt people to address the problems associated with lack of planning for end of life. So many people fail to address these issues due to lack of forethought, fear and an unwillingness to talk openly about dying and death
Contentious Probate Case Update
- From the Solicitors Journal
The decision in Hope v Knight [2010] EWHC 3443 (Ch) is the most recent reported case under the Inheritance Act 1975. The judge dismissed the claims of an estranged wife and a daughter suffering from disability. The couple separated almost 20 years before the testator husband died and had entered into a written separation agreement to deal with their financial affairs. This provided capital provision for the wife and maintenance for the daughter. Following their separation, the testator husband began a new relationship which lasted almost 20 years, until his death. In his will he left everything to his new partner and nothing to his spouse or daughter.
Neither the wife, daughter or partner were particularly wealthy but none of them were obviously unable to provide for themselves. The main factors that appear to have swung the judge towards rejecting the claims were:
- The separation agreement executed in 1991 had given the testator a legitimate belief that he had fulfilled his financial obligations to the wife and daughter, and an expectation that his remaining assets were his to deal with as he wished.
- The testator’s main asset – a house worth £450,000 – had been his partner’s home for years and she had looked after it.
- The length of time that had passed since the testator and his wife divided their assets by agreement.
The daughter’s claim failed, even though she suffered from intermittent depression and obsessive compulsive disorder. The judge said: “I acknowledge that Laura (the daughter) has an aspiration to live in her own place, but that is only likely to come about if her financial position improves significantly. It is not the object of the 1975 Act to bring about such an improvement.
A parent is under no general obligation to house an adult child and does not come under one at death.”
This case is likely to be of relevance in today’s complicated family situations. The judge’s comment about housing and adult children is particularly helpful to those sorts of claims.
At WE Solicitors we can advice you about making a Will, paricularlty if you have children from a first marriage and now have a new partner or spouse. We can discuss the options open to you to protect your children from a first marriage whilst also protecting your second partner and their children.
If you do not have a Will in these circumstances the consqeucnes can be disatruos and very costly.
Contact WE Solicitors, Ivy Mill Crown Street Failsworth manchester M35 9BG
Telephone 0800 294 306 or email jo-ann.mason@wesolicitors.com
Budget 2011 – Update
Inheritance Tax, CGT and charitable giving
WE Solicitors can provide you with further guidance when making your Will and advise you how Inheritance Tax will effect you. If you are an Executor we can advise you on the tax liabilities of the estate. WE Solicitors, Ivy Mill Crown Street Failsworth Manchester M35 9BG.Telephone 0161 683 3191
email jo-ann.mason@wesolicitors.com
Inheritance Tax
The June Budget 2010 confirmed that the inheritance rate nil rate band will remain frozen until 2014-15
Rates and Allowances, 23 March 2011
Inheritance Tax 2010-11 2011-12
Rate 40% 40%
Nil Rate Band £325,000 £325,000
*Budget 2011 announced that from April 2012, a reduced rate of IHT of 36% will be introduced where 10 per cent or more of the net estate is left to charity.
Capital Gains Tax Annual exempt amount — The annual exempt amount for capital gains tax will increase in line with statutory indexation to £10,600 with effect from 6 April 2011.
Capital Gains Tax
Rates for individuals:
Gains before 23 June 2010: 18% / 28% (note 2)
Gains on or after 23 June 2010: 18% / 28%(note 4)
Rates for trustees andpersonal representatives
Gains before 23 June 2010: 18%
Gains on or after 23 June: 28%
Annual Exempt Amount (AEA)for individuals and personalrepresentatives (note 1)
2010: £10,100
2011: £10,600
Annual Exempt Amount (AEA) for most trustees
2010: £5,050
2011: £5,300
Notes
1. Personal representatives are entitled to the annual exempt amount for the tax year in which the individual dies and the next two years.
2. Individuals gains from 23 June 2010 are charged at 18% up to the limit of the basic rate income tax band (if any), and at 28% on gains above that limit.
3. Tax Year 2010-11: Where Entrepreneurs’ Relief applies, gains before 23 June 2010 are reduced by 4/9 and charged at 18%; qualifying gains on or after 23 June 2010 are charged at 10% (with no 4/9 reduction).
4. Tax Year 2011-12: Rates for Individuals 18% up to the limit of the basic rate income tax band (if any) and 28% on gains above that limit.
5. Companies are not within the charge to Capital Gains Tax. Corporation
Charitable Giving Gift Aid donor benefit limits — Legislation will be introduced in Finance Bill 2011 to increase, from £500 to £2,500, the maximum value of the benefits that individuals and companies may receive as a result of making a donation to a charity of more than £10,000 under Gift Aid. The new limit will be subject to the existing rule that the benefit must not exceed five per cent of the gift.
Other tax measures affecting charities
2.116 Inheritance tax: reduced rate for charitable donations – From 6 April 2012, the Government will introduce a reduced rate of inheritance tax of 36 per cent for estates leaving 10 per cent or more to charity. (Finance Bill 2012) (50)
Information from HMRC website