Power of Attorney
You can count on us for a number of Will Writing Services in which we can act as your power of attorney and help you with your legal situation.
Inheritance Tax
Inheritance tax on the value of a person's estate on death and on certain gifts made by an individual during their lifetime. Broadly speaking your estate is everything you own at the time of your death, less what you owe. It's also sometimes payable on assets you may have given away during your lifetime. Assets include things like property, possessions, money and investments.
The inheritance tax threshold is the amount above which inheritance tax becomes payable. If the estate, including any assets held in trust and gifts made within seven years of death, is less than the threshold, no inheritance tax will be due on it. It only applies if the taxable value of your estate is above the threshold which for 2009/10 tax year is £325,000. It is only payable on the excess above this nil rate band. For married couples and those who have entered into a Civil Ceremony, now are entitled to twice this threshold under new laws i.e. 650,000. Cohabiting couples can with the use of Trusts in their Wills obtain the same relief. These levels of IHT are proposed to be held for 2010/2011. The rate at which Inheritance Tax is charged is 40% over the threshold limits. Joint Tenancy and Tenancy in Common
Legally, there are two types of joint ownership, joint equity or property co-buying. You can either own the property as ‘joint tenants' or as ‘tenants in common'. Do not be put off by the terminology. It has nothing to do with tenancies and applies to freehold or leasehold land.
Joint tenancy
Under this agreement the joint owners together own the whole property and do not have a particular share in it. If one of the owners dies the other automatically becomes the 100% sole owner.
Tenancy in common
This is the opposite of joint tenancy in that the tenants in common each have a definite share in the property. For example, A and B could own the property in equal or differing shares, Under this form of ownership, if one of the owners dies, his or her share of the property will pass on to who ever he or she specifies in a Will. It is strongly recommended that a Will be made when buying a property as Tenants in Common. If there is no Will, then any share of the property will be divided in accordance with the intestacy rules of which comes under dying without leaving a valid Will.
Which form of joint ownership should you opt for?
This depends upon personal choice and your particular circumstances. A joint tenancy is one that is most commonly taken up by married couples and where it appears to be no definite advantage in having separate property shares and where it would be the intention that on the first death the property would automatically pass to the surviving spouse. The problem with this is that the whole of the property will pass into the survivor’s estate upon first death, which may then mean that the property will be assessed for care costs and also have Inheritance tax implications on second death. The alternative basis of a tenancy in common will often be used between brothers and sisters, parents and children, unmarried couples, business partners and the like. In these relationships it might be desirable for specific shares in the property to be identified and for each owner to be able to leave his or her share in the property to a named person other than the surviving partner. Owning your property as Tenants In Common also forms part of the strategy in avoiding losing your home to care costs, and avoiding the possibility of your property on the second marriage of the surviving partner, of your property passing to a third person and maybe their family
In later life we may need care which our families can not always provide. Community Care Charges are based on the assets you may hold over the threshold of £23,000 under current assessment guild lines, when the person will have to pay 100% of these charges, this will include any property you may own and monies held in the person’s name. Your property in most cases is the largest asset, this can be protected by holding the property as Tenants in Common (as describe above) and the appropriate Trusts being drafted into your Will. Single property owners as well as joint owners can protect their property by this method. All planning must be in place at least six months before the person goes into care; otherwise it is classed as a deprivation of assets. Correct advice and planning of your Estate can prevent this from happening under present legislation.
What If I Am Unable To Manage My Affairs?
It is not anyone’s choice to become incapacitated by any means. If this does happen you may need somebody to act upon your behalf to look after your personal welfare and manage your financial affairs.
If you do not appoint persons to act on your behalf, the Guardianship Court may appoint some one other than your family or friends to look after your affairs, leaving your family with no control what so ever, and costing considerable administration costs as well
Even when we are young, we can find ourselves incapacitated owing to illness or injury and it can be invaluable having a reliable person, who is able to manage your personal affairs and remove the anxiety of having unpaid bills, at a time when you most need peace of mind.
Similarly as we get older, the need for an attorney increases as we are more prone to illness and injuries.
By creating a Power of Attorney in advance ensures that if the worst were to happen, you can rest assured that both your financial affairs and personal welfare are in safe hands.
So Who Do I Choose?
It is important that you choose who you would like to act on your behalf very carefully. You should choose people you can trust to act in your best interests, giving consideration to how they manage their own affairs.
It is always a good idea to appoint more than one Attorney to ensure that this power is not abused.
Inheritance Tax Services in Bedford, Kettering & Wellingborough
For more information on Richard Sharpe Will Writing Services, including Power of Attorney & Inheritance Tax please don't hesitate to contact us by using the appropriate telephone number at the top of the page or by using the short contact form on the left. We have carried out a lot of our Will Writing Services in Northampton and surrounding areas such as; Milton Keynes, Bedford, Kettering, Wellingborough and Rushden.
