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Inheritance Tax is an incredibly complex subject but vitally important and its origins date back to the Napoleonic Wars when the government introduced a levy to help fund the wars against Napoleon. As the name suggests it’s a tax that we pay based on the value of our estate. Our estate includes any money, property and possessions and the value is used to calculate what, if any tax is due after we die. If you live in England and Wales then you have what is known as a ‘Nil Rate Band’. This is a zero rated tax bracket meaning that essentially everyone with an estate worth more than £325,000 is liable to pay inheritance tax unless planning is done and that you won’t pay IHT on the first £325,000 in our estate.  Inheritance Tax is paid from our estate by our executors after we have passed away. Our executors will calculate what tax we owe and then pay it to HMRC before any other gifts etc will be made. In some cases, we may have to sell our property in order to pay Inheritance Tax. There are a couple of important considerations though. There is normally no tax to be paid if: With all of this in mind, and if you’re married or in a civil partnership then you could have a combined Nil Rate Band of £1,000,000. According to the Gov website the NRB is fixed at £325,000 until 2026 but you can use a partner’s unused NRB if you are widowed or a surviving civil partner. Inheritance Tax has to be paid before the 6 month anniversary of your death. If it’s not paid by this point the HMRC might start charging interest. In many cases, even if the tax calculations haven’t been completed, if you’re aware that IHT will need to be paid it’s a good idea to make a payment towards the bill. This is known as making a payment on account. If you’re worried about Inheritance Tax and would like to start planning to mitigate any tax then consider some of these strategies: If you would like to know more about Inheritance Tax or to have a free no-obligation discussion to talk about your circumstances, then get in touch.

Lasting Powers of Attorney (LPA)   What are they? This is an important legal document in which you (the donor) appoint people your trust (attorneys) to be able to make decisions for you in the event that you become unable to make them yourself or should you decide not to make decisions for yourself. There are two different types of Lasting Powers of Attorney. One giving power over your Health and Welfare and one for your Property and Financial Affairs. When can they be used? They can only be used when they are properly registered with the Office of the Public Guardian (a Gov Body) known as the OPG. Who can I appoint as my Attorneys? You are free to choose who you appoint as your attorneys. What powers do my Attorneys have? LPAs give power for the management of someone else’s affairs, including: You might appoint them in the following circumstances: Is it effective straight away? It becomes effective as soon as it is registered and when you receive confirmation from the OPG. What does ‘registration’ mean? The OPG receive applications from Will Writers and Estate Planners like myself all of the time. We support clients to ensure that these applications go through without unnecessary delay, objection, or rejection. Failure to complete the forms correctly will result in the forms being rejected and the application fee being NOT being returned. You are able to complete forms yourself but you must understand the risks. I support my clients and identify where they are able to save money through exemptions or remissions. How long does it take to register an LPA? Typically, the process can take 12 weeks to register but there are no strict timelines. When SLS Wills and More are instructed to create your LPA, we manage the process with the OPG.

SLS have been helping clients with important legal documents for years. Here are some of the common myths about LPAs that we have heard. ONE I’m too young to have an LPA. This is a silly one… Sadly, you can lose your capacity at any time and one of the biggest causes for loss of capacity within younger people is from road traffic collisions. If you don’t have an LPA and lost capacity the impacts on loved ones could be catastrophic. TWO My family will take care of me. It’s true that your family will probably take care of you but will they have any legal power to make decisions regarding your health or welfare or property and financial affairs? Probably not. This means they won’t be able to take care of your bills or make decisions regarding where you get care. THREE My partner knows my pin number so they’ll be able to access my bank. Without an LPA for property and financial affairs, they shouldn’t be able to access your bank, let alone access the funds within it. If you’re the breadwinner within your household and you don’t have an LPA, this could cause serious financial worry. FOUR It’s too complicated At SLS Wills and More, we take a simple approach to helping you put these documents in place. We hold your hand step-by-step until the document is ready for use. This removes any complication. The joys of using a professional like me to help you is that these documents will be accepted by the OPG on application and I’ll notify you of any remissions you may be able to apply for. FIVE It’s too expensive Not with SLS it isn’t. We pride ourselves in offering affordable legal services and even offer relaxed payment schemes. For more information, or for a quote, please contact me. SIX I’ve been diagnosed with dementia so I can’t make one now. This might not be true. In order to make an LPA you need to have the mental capacity to do so. I will be able to make an assessment for you. SEVEN I’ve already got a Will so don’t need an LPA An LPA serves a different purpose to a Will. Your LPA allows you to appoint people you trust to make decisions for you in the event that you cannot. They are used during your lifetime. Your Will is effective after you’ve passed away. EIGHT I don’t have anyone to appoint as my attorneys so I can’t make an LPA If you don’t have family or loved ones that you trust or would want to appoint, you can appoint a professional to be able to act. We will be able to tell you more about the costs and implications of appointing a profession. NINE I’ll just wait until I need it. This could be a BIG mistake. You can only make an LPA when you have mental capacity. Don’t leave it too late. TEN LPAs are only for people with money. There are two different types of LPA. One governs your health and welfare and takes into account who cares for you or how. This has no correlation with money.

The festive period is normally a happy time, a time for giving and receiving but for many also a time of reflection. We also to look ahead at the coming year, to set our goals and make those New Year’s resolutions then promise ourselves to actually stick to them this time! Whether that is to lose that weight you’ve been promising, apply for that new job, or to get your affairs in order. Many people put off their estate plan year after year. We promise ourselves that we are going to finally sort our Will out and then forget about it only to agree to sort it out again in the new year. According to a BBC News article, which you can read here, more British people die during the first full week of the year than at any other time. The chart included in this article shows deaths by day during December and January in England and Wales. It shows a peak during the first full week of the year. While estate planning may not be traditionally associated with the winter holidays, the end of the year is a good time to reflect on your situation and plan for the future. Estate planning is a good idea for families at all stages, and it’s particularly important at certain milestones like marriage, having kids, and reaching retirement age.  Basic estate planning documents like a Will, a Power of Attorney, and a Funeral Plan allow you to clearly set out your wishes. You have the opportunity to create a plan that fits your family’s particular dynamic. For example, you may want to provide for your children and relatives, or you may want to set up individual provisions for your grandchildren or favourite charities. Keep in mind that a basic Will may not cover all your assets, so other options like Trusts may be necessary but your Will writer will be able to discuss this and advise you of the best options for you. So, while the family is together, and we are in this period of reflection and planning use the time to be open and discuss your wishes with the family. Commit to creating your plan going forwards so you can have peace for many more years to come.   If you would like some friendly, caring & supportive advice about your role as an Executor, or Power of Attorneys, Funeral Planning, Will Writing and how we can help you, you can call Sara on 01304 577998 or email sara@slswillsandmore.co.uk.

SLS Wills and More had a very exciting 2021 and we helped more clients than ever before. In 2022 we are excited to have welcomed Shaun to join us as a consultant which means that we are going to be able to help even more clients. Shaun joins Sara and Kim at SLS Wills and More, who look after our lovely clients. Be sure to check out our other article welcoming Shaun into the business. If you would like to contact Shaun directly to book an appointment, he can be reached at shaun@slswillsandmore.co.uk. One thing has not and will not change in 2022 and that is the importance of estate planning, and putting the correct plans in place. You will no doubt be pleased to hear that we are as committed as ever to providing affordable estate planning with advice tailored to suit the needs of our clients. The benefit of choosing SLS Wills and More as your estate planning partner is that you’re getting the benefit of nearly 40 years of estate planning experience from drafters who are STEP qualified, members of the Society of Will Writers and who passionately care about doing a good job. If you are reading and are an existing client of SLS Wills and More and it’s been some time since we wrote your Will, feel free to get in contact with us to book in a complimentary review. It is likely that your documents will be absolutely fine but it is always good to check that they are up to date. As a basic measure, you should check/update your Will every 3-5 years to take into account any tax or legislative changes. If in doubt, always ask. If you have not written your Will yet and the information above has given you confidence that writing your Will in 2022 is a good idea and that you would like to have us support, book in for a free consultation. You do not have to pay a penny to hear our advice. If you would like to proceed, you will have a clear idea of costs and will be in a position to make an informed decision. In any case, we wish a prosperous 2022 and beyond!

Join us in welcoming Shaun to the team here at SLS Wills and More. We are really excited to welcome Shaun onboard who joins Sara and Kim supporting our clients with estate planning. Shaun is pleased to introduced himself and has said the following: “My name is Shaun Everett and I live in Canterbury, Kent with my wife. I have been married 37 years and have 3 children and 4 grandchildren. To say I have had a varied career would be an understatement as I have been a stage tech at The Royal Opera House, a London Taxi Driver and for most of my working life a financial planner including working for Danske Bank Ireland and Nationwide Building Society – UK. I always wanted to build our own house and had the opportunity of achieving this in 1998 after two years of hard work on a site we had in the west of Ireland. I am excited about joining Sara Sheppard owner of SLS Will and More as an Estate planner after passing my exam with the Society of Will Writers.“ If you would like to book an appointment with Shaun, contact him at Shaun@slswillsandmore.co.uk

First of all, a Lasting Power of Attorney is a document that is created and used during your lifetime (whilst you’re living). This is the opposite to a Will which is created whilst you’re living but actioned or used when you pass away. Both are incredibly important. A Lasting Power of Attorney (LPA) is a legal document which gives authority to specific people (your attorneys) to be able to make decisions for you regarding specific matters. There are two types of LPA; Knowing what the documents do, it’s pretty easy to understand what matters you’re granting power over but to give an example a Health and Welfare LPA gives attorneys the right to make decisions over your healthcare for example. Remember that all decisions made under an LPA must be made in the donor’s (your) best interest. With this in mind, why would you make one and when is the right time to create an LPA? Typically, an LPA is registered and used when someone is unable to make decisions for themselves but sometimes, it’s easier to have help from loved ones. If you need help with getting bills paid and online banking, a property and financial affairs LPA is a good idea.  An LPA cannot be made when you have lost mental capacity so forethought is important and planning needs to be done. Trust us when we say that it’s much more cost effective to have one in place with the hope that it is never needed rather than the alternative – not having one and needing to apply through the courts (Court of Protection) because someone needs to be able to handle your affairs. As an example of how it could go wrong, check out this video on our YouTube channel: https://www.youtube.com/watch?v=ztZWHiixUDg For more information about Lasting Powers of Attorney, check out this short video: https://www.youtube.com/watch?v=fXn2k8CA3lY In summary, the short answer to the question ‘When is the right time to create your Lasting Power of Attorney?’ is sooner rather than later or now. Final note on the subject of LPAs – Do remember that to register the documents (with the Office of the Public Guardian) there will be a fee. We will tell you whether you’re entitled to a remission (discount) on these fees. To book your appointment to discuss this, give us a call on 01304 577998.

This is an incredibly complicated subject and one that we are starting to hear more about as time goes on in the profession. There are lots of reasons why someone may want to benefit from an estate and the reasons that we hear a lot are; The term given to someone who doesn’t benefit from an estate when they expect to, is ‘disinherited’. Sometimes, the testator simply changes their mind and according to the laws of England and Wales, we are entitled to leave our estate to whomever we choose. This principle is known as ‘Testamentary Freedom’. It simply means that we have a choice as to what happens to our assets and who we want to benefit. Surely this means that if a testator (the person writing the Will) chooses to disinherit someone then that’s final? Not always… In some countries, family members will inherit regardless under what is known as ‘forced heirship’ but in England and Wales we can choose to give our estate to charity rather than have our children benefit if we wish. There are some considerations that need to be taken into account which erode the principle of testamentary freedom and sound a little more like forced heirship. Put simply, and whilst it’s not always the case, a child may choose to challenge a Will if they’re not happy. Not just a child either. If someone feels like they promised part of an estate, they may choose to challenge an estate.  In the case of Ilott v Mitson, an estranged daughter challenged the wishes of her mother who wanted to leave her estate to a charity as she felt like she was entitled to more! This case went to the Supreme Court. What will then happen under a challenge is that a solicitor will start to investigate whether you have a claim against the estate. These will be contentious probate specialists. In some cases there may be a claim under the Inheritance Act 1975 – also known as Inheritance (Provision for Family and Dependents) Act 1975. In the profession, we call this a 1975 claim. Here, and by way of an example, children may claim against the Will of their parents where they feel they have not been left ample or reasonable financial provision. In some cases where a challenge against a Will has been raised, the challenger may suggest that a ‘the Will’ is not the latest or newest Will or that the testator didn’t have capacity to make a Will in which case they may be looking to benefit from an intestacy or even from a previous Will which was more favourable. As mentioned above, it’s an incredibly complex subject and these are some issues that can arise if you make a Will yourself (DIY Will) or when you don’t seek the right advice. A key consideration here is that these issues and challenges don’t tend to raise their head or come to light until after you’ve died by which time, mistakes cannot be rectified and court cases are no-doubt costly. At SLS Wills and More, we take care to ensure that we understand if you’re looking to exclude anyone, who it is, and whether a claim could/might be made in the future. Additionally, we take detailed notes to support in the event that a future claim is made. Lastly, we provide advice to help ensure that your wishes can be carried out when you’re no longer around. If we believe there may be a challenge in the future, we will suggest how to prevent it being successful. All of this being possible because you’ve chosen a trustworthy professional with over 35 years experience to support you. Got a question, get in touch.

The lives of football players and their levels of wealth often seems like a world away for many people but we can use them as an example when it comes to estate planning. In this short article, we’re going to take a few stories from the press about footballers and relate it to Wills. Firstly – 17 year old Blackpool player Jake Daniels is the first professional player in England to come out as gay. When it comes to same sex relationships and Wills, in England and Wales, same sex civil partners or spouses are treated the same for inheritance purposes. This means that if a same sex couple are married or in a civil partnership any assets that pass between these individuals under the terms of their Will shall be exempt from inheritance tax. It also means that if no Will exists, they can benefit under the laws of intestacy. Secondly – Wages are considered to be astonishing in football, simply because it attracts incredible revenue and sponsorship and TV rights. The Premier League’s highest paid player according to Boardroom.TV is Manchester United’s Cristiano Ronaldo. He is reported to earn £26,520,000 per season. These levels of wealth are incredible and many are jealous but with money comes problems though and tax is one consideration. It’s not only during our lifetime that we’re taxed. Upon our death, we are also taxed. Inheritance Tax is a paid by our estate after we’ve gone on anything we own over £325,000. If we assume that Ronaldo only has £26,520,000 when he dies his estate would still be liable for £10,478,000 which is essentially 40% of his estate (over the NRB). Obviously it’s a very complicated subject and anyone with levels of wealth or assets should seek professional advice. Lastly, football clubs are an asset with a value, as we’ve recently seen through the sale of Chelsea Football Club. When you pass away, these assets need to be taken into account. It’s possible that you might be entitled to tax reliefs on business assets. Something like Business Property Relief (BPR) but again, advice should be sought. Remember also that if you have people reliant upon you for income (or for income from the business) then commercial or business estate planning is vital. It becomes more than just about Wills here and we can start to look at commercial LPAs to ensure the business can continue to run smoothly without you, that wages or bills can still be paid and that the team know who will continue to run the club. Three very quick but important examples here. Please don’t take the examples provided as advice. They merely demonstrate what could happen but without professional advice, you could find yourself in a difficult situation. If in doubt speak to us about your circumstances.

We are obviously advocates of estate planning. We run a Will Writing business after all so you know our advice is more likely to be ‘you need a Will’ rather than the opposite. BUT… and here is the thing; we will only provide what we believe to be the correct advice. If that advice is that you’ve brought us a Will to review and we think that the Will is fine, we’ll tell you that. The key thing is that you took time to get advice. What breaks our heart is when someone comes to us and tells us that they’ve lost a loved one and it turns out that there was no Will. In those circumstances, it’s called an intestacy and the estate passes in accordance with government rules. Less than ideal. So, this article is about 3 reasons doing nothing is a bad idea. Reason 1: Imagine this. A married couple don’t have Wills. They have one child and a modest estate. The husband passes away and the wife inherits everything (depending on the size of the estate). After a period of mourning, the widow remarries. The estate is still relatively modest and eventually the wife (widow) passes away. Her estate then passes to her new husband. The first husbands child has effectively been disinherited (won’t get anything), all because there was no Will. Not what the husband would have wanted. Reason 2: Imagine this. You’re unmarried but you live with your partner. You have done for a number of years. They moved in to your house but you had no intention to marry. You have a shared bank account but that’s it. You have some family but no-one close. You pass away without a Will. Your estate passes to your family (defined by the rules of intestacy) and your partner inherits nothing. Worse still, they lose their home. Reason 3: Imagine this. You are married and happy with life except for one thing. Your partner has an addiction to alcohol and likes to gamble. You control all the finances to stop them from spending the bills money and savings. You don’t have a Will and pass away suddenly. All of your estate passes to your partner. They start drinking more to numb the pain and they gamble more. All of your hard work and savings are gone. The mortgage isn’t paid. The house is at threat. These 3 simple scenarios are more common than you think. All of these can be prevented by speaking to a professional and putting the right plans in place. Wills are more than just a document which says what you’d like to happen to your estate. They represent and provide certainty for loved ones, they’re protection for loved ones. They show you care. If you have a Will, make sure it’s kept up to date. If you don’t have a Will, book an appointment. www.slswillsandmore.co.uk