If you own your house and the mortgage is covered by an Insurance Policy then this would leave you with the full value of your home and would be included in the value of your estate.  Other Life Insurances to protect your family might also be included in this sum and it is easy to see why so many people fall into the IHT trap.  If you wish to discuss ways of mitigating this tax please call us for advice.

Everyone who has any assets would like to ensure that on his or her death someone would benefit from their estate.  If a person dies without a Will they are said to die Intestate and under those circumstances their assets are passed on to their next of kin but only insofar as the law recognises the next of kin and the value of the estate.  For instance consider the following:

• A widow might not receive everything belonging to her deceased husband and she could struggle to make ends meet while her children have plenty.
• Natural children, adopted children and illegitimate children all have rights, especially if they are in full time education.
• Step-children have far fewer rights. 
• With so many broken marriages there are a multitude of couples living together outside of marriage with children of his; hers and their relationship.  Some of those children could end up with nothing if their parent died without making adequate provision. 
•  Inheritance Tax was a tax imposed on the rich but these days most people who own a house ARE ‘rich’.  Assets over £300,000 are taxed at 40% and there are ways to ensure the Tax Man does not have more than he ought.

Please ensure that YOU write a Will – apathy is no excuse for failing to protect your loved ones and making sure that the Chancellor of the Exchequer is not a major beneficiary of your estate.  

Enduring Powers of Attorney

These documents will be replaced in October 2007 but as we presently understand the situation Enduring Powers of Attorney (EPAs) written before October will still be valid.  The new legislation means that costs will rise and the new documents will have a life span after which they will need to be renewed.

An EPA allows someone to act for you if you are unable to do so yourself and it continues if you become mentally disabled.  You cannot make such an appointment if you are already mentally handicapped and the Public Guardianship Office (PGO) will appoint someone to act for you – this is normally the next of kin but sometimes that person is not the most suitable and we would not want them to be looking after our money and property while we are still alive.

The P G O would not know this and will act as they think appropriate subject to the agreement of other family members of an equal status.  This could lead to friction within the family that most would wish to avoid but we do only have one husband or wife and we might only have one child - none of whom might be suitable.

We believe that YOU should appoint the person you most trust with your assets while you are able to do so – EPAs are very powerful documents and it is important that you fully understand the implications of giving authority for other people to manage your financial affairs but we believe it is equally important that the decision is not taken out of your hands and given to others to make that decision for you.

Living Wills (Advance Directives)

Euthanasia is not allowed in the U.K. and rightly so - but if you were being kept alive with no possible hope of recovery and you then contracted a secondary illness would you wish to have that illness treated?

Who should make that decision?  The surgeon? Your family? YOU!

You can make your wishes known with an Advance Directive if you feel strongly about these issues and feel that your children might have alternative opinions to you.  We personally have mixed views but would not want to influence you for or against – merely to inform you that such forms are available and legal.

You can always change your mind at a later date should you have second thoughts.

Ring 01543 411131 for more information