Inheritance Department
 It is said there are two certainties in life – death and taxes!
Whilst we at Stephens & Son LLP cannot promise to prevent either we can help minimise the impact of both on your loved ones and to give you peace of mind.
None of us knows what the future holds but we in the Inheritance Department have the expertise to advise on strategies to deal with much that life throws at us – we can usually find solutions for most problems that clients present us with! We can help to save you money and taxes and to safeguard your family and their inheritances.
Not all solicitors are the same and the quality of the advice and service varies considerably from firm to firm. Sadly in some firms matters such as wills and probate are not given priority and we know from speaking to our clients that they have often been disappointed with other firms that they have used in the past. We in the Inheritance Department are committed to providing a high level of expertise in this area and as a result have developed systems to enable us to deal with matters for clients with speed and efficiency. We are among the few full members locally of the Society of Trust and Estate Practitioners (STEP) which is an international organisation of the most experienced and senior practitioners in the field of trusts and estates.
We are often able to act on a fixed fee basis but where we are unable to, we will generally only charge for time spent dealing with a matter. For example in probate and administration cases we will not, unlike most other firms, also charge additional fees based on the value of the estate being administered as we believe that this is usually unjustified.
But acting for clients is not just about finding solutions in a cost effective way. We aim to “go the extra mile” for clients so that they recommend us to their friends and family. We are great believers in plain English and, whilst we cannot guarantee there will be no complicated documents, we will avoid legal jargon where possible and where not we will explain matters in detail to make sure that you understand them. We know that many of our clients come to us in times of stress and our aim is to act with sensitivity and understanding so that we help to relieve that stress where possible and not to add to it!
Elderly Clients
Many (but not all!) of our clients are elderly and we fully appreciate the added dimension that this can sometimes bring to our work. We have many years of experience of acting for the elderly and will tailor our service to suit them where necessary. For all clients who cannot come in to the office we are always happy to visit either at home or in hospital. We frequently act as attorney for vulnerable clients and provide advice to clients who are worried about elderly relatives.
Wills
If you die without a valid Will your estate will be administered in accordance with the intestacy rules. This is a statutory “pecking order” which dictates who gets what from your estate and who is entitled to administer the estate. By their very nature the intestacy rules must be general and it therefore stands to reason that they will not be suitable for everyone. Here are some of the common problems with them:
- They do not always ensure that a surviving spouse inherits the whole estate of a deceased spouse
- They do not recognise cohabitees in any way
- They do not recognise step children
- They can result in the payment of unnecessary tax
- They can add to the costs of estate administration
Making a Will and avoiding the intestacy rules is therefore an important way of making sure your wishes are carried out and your family is not left with unnecessary heartache and financial problems. They can be used to:
- Decide who you would like to administer your estate on death
- Appoint guardians of children under 18 and set up trusts to support them
- Make gifts (perhaps of jewellery or other items of sentimental value)
- Set out your funeral wishes
- Incorporate tax planning measures
- Ensure that any business you own is properly dealt with
- Deal with more complicated family structures
A homemade Will can seem like a cost effective option. However in our experience this can be a false economy as problems with the Will often only come to light on death. Your wishes may not be carried out and there are often far higher administration costs.
Wills should be kept up to date and we are always happy to review Wills to make sure that they continue to be appropriate and to reflect your wishes.
Probate and administration of estates on death
It is the duty of personal representatives (executors and administrators) to administer a deceased’s estate in accordance with the law within the terms of the deceased’s Will or under the intestacy rules. As a firm Stephens & Son LLP appreciates that not all personal representatives will choose to have professional help in administering an estate but we are here to assist you where help or advice is needed.
We are happy to just provide initial advice to personal representatives who wish to deal with matters themselves by explaining the processes involved, their legal duties and responsibilities and how to protect themselves against personal liability. We can assist by just preparing the legal documentation to apply for the grant of representation at the probate registry. For more complicated estates or for those clients who would rather place matters in the hands of a professional we can deal with the whole administration process. We often act as executor for clients.
Estate and Inheritance Tax planning
Life is not an exact science and we do not know what the future holds. Estate planning can be useful if you have any concerns about the following:
- Inheritance tax
- Future changes to the inheritance tax regime
- Paying care costs in the future
- What happens to your estate if you die and your spouse remarries
- How to protect your children from previous relationships
- How to protect vulnerable beneficiaries
- Preventing certain people benefitting from your estate
- Not wasting inheritance tax exemptions such as business property relief
- Estates with assets increasing in value faster than the inheritance tax threshold
- Keeping matters as flexible as possible and saving decision making until a later date
- Other taxes
- Inheritances you may receive in the future
Trusts
Trusts provide considerable scope for passing on assets or reducing tax liability by placing the assets outside of your estate. This is an area of law that requires careful consideration and advice often in conjunction with other professional advisors such as accountants or financial planners. We can advise on the suitability of trusts, prepare the necessary documentation and also act as trustee where appropriate.
Deeds of variation
If you inherit assets from someone it is possible to redirect these away from your own estate within 2 years of that person’ s death by way of a deed of variation. This is a useful tool in estate planning and we can advise fully on the use of such documents.
Deeds of variation can direct gifts to individuals or to a trust. Where a trust is used it is possible for you to benefit from the trust in a tax efficient way which would not be the case if you simply gave assets to the trust during your lifetime. The assets in the trust are there in case you need them but to the extent that you do not, they would not be included in your estate for inheritance tax purposes. In addition to inheritance tax advantages there are other reasons why you may wish to redirect assets away from your estate by way of a deed of variation:
- To have more control over the timing of gifts to those experiencing difficulties such as divorce, ill health or even dependency on drugs, alcohol or gambling.
- To reduce the value of your estate if this is necessary for other reasons.
- To allow you to watch your family enjoy assets earlier than would otherwise have been tax efficient.
Lasting Powers of Attorney
Property and Affairs
Have you ever wondered how you would manage your affairs if you were to suffer say, a stroke or develop dementia? Most of us have had some experience of the difficulties encountered when someone is unable to cope with everyday financial matters – banks won’t talk to third parties without authority and bills still need to be paid and money looked after!
This is a problem which most of us do not wish to think about but can be addressed with one legally efficient document known as a Lasting Power of Attorney. In this document you can give legal permission for someone else (a member of the family, trusted friend or us) to act on your behalf.
The benefits to you are:
- If you become ill you will receive help with your finances
- You can choose exactly who acts on your behalf – especially important if you have a large family or no close family
- You avoid someone needing to make an application to the Court of Protection – this is a public body in London and the procedures involved are cumbersome, slow and very expensive
- Peace of mind for you and your family
If you lose mental capacity it is no longer possible to create a Lasting Power of Attorney. Not all mental incapacity arises through old age or with any warning – having a serious road accident for example may remove legal capacity to manage your own finances.
Personal Welfare
A property and affairs Lasting Power of Attorney deals with assets and finance but have you considered those literally “life and death” decisions that sadly occur from time to time. The world has watched as time and time again courts have become involved in making decisions over a patient’s right to choose especially where the patient is too ill to communicate his or her decision to others.
A personal welfare Lasting Power of Attorney enables you to choose someone you trust to make these decisions on your behalf in accordance with your wishes and can avoid disputes at what is a very distressing time. If you have strong views on the type of care or treatment you would like to receive we would advise that you consider making a personal welfare Lasting Power of Attorney.
Lasting Powers of Attorney are very powerful documents and the procedure for creating them is quite complex. We would recommend that specialist legal advice is obtained and we are happy to advise in this area.
Enduring Powers of Attorney
Although it is no longer possible to create an Enduring Power of Attorney documents created before October 2007 remain valid. It is the duty of attorneys under such documents to register them with the Office of the Public Guardian if the donor of the power is or is becoming mentally incapable of handling his or her affairs. We can advise on all aspects of this and prepare any necessary documentation.
Court of Protection
Sadly if someone loses capacity to manage their own affairs and they have not made any provision for this it is often necessary for an application to be made to the Court of Protection for the appointment of a Deputy (formerly Receiver). This is a formal Court procedure and can be complicated and time consuming. We have the experience to guide you through the whole process and we can, if necessary, act as Deputy.
Please contact Caroline Brooks Johnson or Julie Weekes.
cmbj@stephens-son.co.uk or jw@stephens-son.co.uk
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