Tax matters to date of death– including the completion of repayment claim forms, self-assessment tax returns, Court of Protection Accounts and all taxation related matters to date of death with HM Revenue & Customs

Inheritance Tax– completion of all inheritance tax forms, including IHT 205, IHT400 and supporting schedules, checking HM Revenue & Custom’s calculations of interest where payment by instalments is applicable and dealing with clearance applications

Capital Gains Tax – computations of liabilities, including review of available reliefs, claims and exemptions. Reporting to the Inland Revenue and looking at potential tax planning opportunities

Trust Taxation– accounts and tax returns, including the completion of trust tax administration with HM Revenue & Customs

Tax Planning– Lifetime and Wealth Planning. How to mitigate IHT & CGT

No one likes to think about losing the ability to manage their own affairs including handling a bank account, claiming benefits, looking after their tax affairs or transacting a house sale.

For peace of mind it is more important than ever that you make Lasting Powers of Attorney to nominate people you trust now to make important decisions on your behalf in the future. The use of a professional advisor is essential, in order to avoid mistakes and ensure the Lasting Power of Attorney paperwork is acceptable to the courts, who will promptly reject incorrectly completed documents.

Steele Rose have specialist legal consultants based throughout England and Wales who are ready to visit you, in your home, at a time and date that is convenient (evenings and weekends included).

Steele Rose pride ourselves on our professional, prompt and personal approach. We aim to complete your Lasting Power of Attorney request as quickly as required and provide a 14 day no obligation option to cancel instructions without penalty, so there is no risk or obligation when contacting us.

Fixed Lasting Power of Attorney (LPA) Prices:

What’s Included?
Home visit Single Registered LPA only £299
Home visit Multiple Registered LPAs only £250 each
*Prices exclude vat, additional court fees may apply

There are two different types of Lasting Power of Attorney available, most people choose to do both types in order to have complete protection:

• Property and Financial Affairs Lasting Power of Attorney (LPA PA) that looks after all
  your property, financial assets, pensions and investments etc.
• Health and Welfare Lasting Power of Attorney (LPA HW) that covers all aspects of your healthcare and personal welfare. Including controlling where you may live, medical administration and life sustaining treatment, should you ever require care.

Even joint bank accounts may be frozen if one of the account holders loses mental capacity. Recent newspaper articles have highlighted the plight of residents in care homes being uprooted from the home they love and dispatched, like a parcel, to unfamiliar new addresses. These issues may be avoided if the correct Lasting Power of Attorney is in place.

If you would like to make a Lasting Power of Attorney, call us free on 01722 410009 or complete the no obligation Contact Form.

The Steele Rose IHT Savings Trust

What is the Inheritance Tax Savings Trust (IHT Savings Trust)?

Our IHT Savings Trust is designed to allow individuals to remove taxable assets (normally cash) from their estate to reduce the inheritance tax liability. These funds are gifted to the trust (either as a single payment or several single payments) as a lifetime transfer. The Settlor can manage the funds if they are not used to benefit the Settlor.

Once in trust, if the funds are required by the Settlor, they may be paid back to the Settlor however this would also place the funds back within the estate for inheritance tax purposes.

It is also possible that funds placed into trust be excluded from local authority means testing provided that they cannot prove that a contributing factor for making the gift into trust was to save on care fees (or avoid paying them altogether).

Funds must remain in trust for 7 years to fall outside of the Settlor’s estate for inheritance tax purposes.

Requirements of the trust

The IHT Savings Trust only requires the formality of setting up a lifetime trust and the funds (or assets) to be placed within the trust. Sums over £325,000 will be placed in multiple trusts.

How does the trust work?

A trust deed would be drafted to set out the powers and limitations of the trust required. The Trustees would then accept the gift into trust from the Settlor and invest the funds as per the Settlors wishes. On death of the Settlor (or at the end of a set term) the trust funds will pass to the beneficiaries as per the wishes of the Settlor (thus passing outside of the estate of the deceased).

Limitations of the IHT Savings Trust

The trust requires the Settlor to have no interest in the gift after it has been made. If at a later date the funds are needed, they can be paid back to the Settlor however this would discount any potential inheritance tax savings.

Should you need assistance with care home fees in the future it is possible that the local authorities will scrutinise the gift of your home into trust. If they can prove that a contributing factor for making the gift into trust was to save on care fees (or avoid paying them altogether) then they may be able to recover the value of the trust property.

If the trust continues for ten years the property (or investments) would be valued and added to any capital which had been paid out of the trust within the ten year period. If that value is more than the nil-rate band there would be an inheritance charge of 6% of the trust fund (this potential charge occurs on every tenth anniversary of the trust).

We provide various services to help with the creation of trusts as well as general estate administration. For more information or to speak to our Probate specialist please call 01722 410009.

By accepting free advice you are under no obligation to use our services.

The legal process of administering an estate of an individual who has passed away is known as ‘extracting the Grant of Probate’ (also referred to as a ‘Grant of Representation’). This verifies the legal right of an Executor to administer the estate of the deceased and in practical terms will require the executor to call in all assets of the estate, pay all liabilities and then make distributions to the beneficiaries (however it is seldom quite this simple).

What is The Process?

The Probate process is easiest to group into three main areas:

Administration

Administration consists of things such as taking inventory of the deceased’s possessions and debts, notifying and paying off bills for all relevant organisations and distribution of the estate. Estate administration is by far the most time-consuming task.

Legal

The Legal side of probate consist of applying for a grant of probate; this must be done before the executor of a will is able to carry out most of the estate administration. They must also identify and deal with claims that are made against the estate.

Tax

Towards the end of the process the executor needs to start completing inheritance tax returns and paying any inheritance tax that is due. This must also be done for both income and capital gains tax; all outstanding tax must be paid.

How Long Does Probate Take?

The complexity of the estate is the primary factor affecting the completion of probate; the most time-consuming practice is the getting in of all of the assets and the selling or otherwise disposing of them in accordance with the Will. The various institutions (such as banks, insurance companies and investment agencies) work to their own timescales and will substantially increase the administration period. There are circumstances that may cause the completion of Probate to take in excess of two years due to such reasons as a delay in property sale; thankfully, this is a rare occurrence.

How Much Does Probate Cost?

The cost to have a probate specialist take over the estate administration for you will vary from estate to estate. It takes in factors such as size of the property, number of beneficiaries, and the amount of bank accounts, to name a few. There are multiple methods as to how a probate specialist calculates the quote.

Does Every Estate Need Probate?

The basic rules on whether an estate needs probate are as follows:

• If the estate passes to a surviving spouse/civil partner through survivorship (this applies to all assets that are held in joint names e.g. Bank Account and property held in joint tenancy).
• If the estate does not include Land, Property or Shares (e.g. where an estate comprised solely of chattels).
• The person who has died had left very little (usually under £5,000).

We provide various services to help with obtaining the Grant of Probate as well as general estate administration. If you have any further questions or would like some more information, please call 01722 410009 to speak to our Probate specialist.

By accepting free advice you are under no obligation to use our services.

At Steele Rose Legal Services we’re committed to making the establishment of a Lasting Power of Attorney as simple and straightforward as possible – we’re exceptionally familiar with the process and can streamline it for your specific requirements. If you are not sure how to get power of attorney organised, simply choose the person you would like to nominate and let us take care of the whole submission process from start to finish.

One of our Legal Consultants will visit you at home at your convenience to discuss your LPA with you, then draw up the required paperwork before returning to you to complete and witness it. Once this is done, we’ll submit the application for Lasting Power of Attorney to the Office of the Public Guardian for registration, and only after this has been approved can your attorneys act on your behalf.

People most often consider immediate family for LPAs, and we’ll explain to all parties how to get power of attorney put in place to protect against loss of mental capacity – just pick up the phone today and speak to one of our team. We will be happy to offer any advice and information you need, plus you can make an appointment for your local Legal Consultant to visit you. Putting a Lasting Power of Attorney in place does not have to be stressful, just one call to Steele Rose Legal Services and we’ll take care of it for you.

Doing Probate yourself (not using a probate specialist) is a very possible task to accomplish. The difficulty of DIY Probate solely depends on the executor, some will find it easier than others however please keep in mind that it can take a substantial amount of time. There are no specific qualifications that are needed; although experience with any of the main areas of the Probate Process would ease and shorten Probate. Patience is needed as some of the companies that the executor will have to deal with are not always as helpful as they would want them to be.

If a stage is reached in which the executor is really struggling, they can always then get help from a probate specialist, many will be happy to give advice and assist, passing the work the executor has already done to a specialist for them to finish off can save a good amount on their fees. The more the executor does, the less they will have to pay someone else to do.

An important thing to consider is how much responsibility, and potential liability, the executor is willing to take on themselves.

At Steele Rose Law we offer a service where we take more of a supervisory role, in which the executor would do as much work as they can until they reach sections they do not understand or need help with, they can then come to us for assistance.

If you have any further questions or would like some more information or help with obtaining the Grant of Probate as well as general estate administration, please call 01722 410009 to speak to our Probate specialist (by accepting free advice you are under no obligation to use our services).

The Steele Rose Home Protection Scheme

What is the Home Protection Trust?

Our Home Protection Trust is created to protect your family home and your right of residence within your home. The purpose is to ensure that the property will pass directly to your chosen beneficiaries, after your death, with as little hassle and delay as is possible. It may also remove your home’s value from being included in a local authority means assessment for care home fees.

Requirements of the Trust

The Home Protection Trust is suitable for any person that owns their home free from of any mortgage and that the property has a value of less than £325,000 (£650,000 for a couple who own it in equal shares).

How does the trust work?

A trust is created immediately, and your home is transferred into the names of the Trustees of the trust (a legal requirement). The Trustees may not sell your home within your lifetime however if you wish to move home then the Trustees must sell your home and buy an alternative property at your request.

Should the time come when you no longer need your own home during your lifetime – the Trustees will sell your home and invest the proceeds to produce an income for you.

At the time of death (or the death of the survivor of a couple) the Trustees will close the trust and transfer the property or investments to your specified beneficiaries. The trust property will pass outside of your will and so there will be no requirement to wait for a Grant of Probate before the transfer is made to the beneficiaries.

Limitations of the Home Protection Trust

Should you need assistance with care home fees in the future it is possible that the local authorities will scrutinise the gift of your home into trust. If they can prove that a contributing factor for making the gift into trust was to save on care fees (or avoid paying them altogether) then they may be able to recover the value of the property.

Since your home would be gifted into trust, certain local authority grants for repairs and/or maintenance may no longer be available and so other arrangements may need to be made.

The value of your home will still form part of your estate for inheritance tax purposes (due to the remaining interest in possession).

If the trust continues for ten years the property (or investments) would be valued and added to any capital which had been paid out of the trust within the ten year period. If that value is more than the nil-rate band there would be an inheritance charge of 6% of the trust fund (this potential charge occurs on every tenth anniversary of the trust).

What is a Deed of Variation?

A Deed of Variation can be used by the beneficiaries to change entitlements under a Will or Intestacy (most commonly for tax saving purposes) – it allows a beneficiary to re-direct his or her gift for the benefit of another individual (avoiding the same money being taxed twice). This is to be completed within two years of the date of death.

Reasons for a Deed of Variation

There are many reasons why beneficiaries may wish to vary or redirect inheritances.

The main reasons are:

• To save Inheritance Tax
• To alter the interests under a Will
• To provide for someone who has been omitted from a will or who has not been given adequate financial provision in a will
• To resolve any uncertainty or amend a defect in a Will

The main effect of a Deed of Variation is that the alteration made by the deed is treated as having been made by the deceased, and not by the beneficiary who has given up his entitlement under the Will.

A variation cannot be done without the consent of everyone likely to be affected by it or if the beneficiary is a minor (as they are not able to sign a deed). This would need consent of the court before it could be done, and such consent is not readily given.

Why might a beneficiary wish to vary their share?

As an example, a gift of £100,000 after inheritance tax would see the beneficiary receiving £60,000. If that beneficiary passes away with an estate over the £325,000 nil rate band, the £60,000 inheritance would now be subject to a further 40% inheritance tax leaving just £36,000.

By varying the original Will, a beneficiary may renounce his or her share to an individual of their choice (children, charity, etc) and save the additional taxation that would likely occur.

When can I do a Deed of Variation?

It can be done at any time (before or after the Grant of Probate is issued), but if it is implemented to save Inheritance Tax or Capital Gains Tax, it must fulfil the following requirements:

• Completed within two years of the date of death
• The right tax declarations must be included in the deed
• There must be no inducements (such as a cash payment) given to any beneficiary to enter into the deed
• The destination of an asset cannot be varied more than once in different deeds, although more than one deed is permissible if they deal with different assets

A Deed of Variation can be done even if the administration of the estate has been completed and the deceased’s assets have been distributed.

We provide various services to help with obtaining a Deed of Variation as well as general estate administration. For more information or to speak to our Probate specialist please call 01722 410009.

By accepting free advice you are under no obligation to use our services.