2016 has passed and with it the death of many notables. It looks like a busy year for HMRC in terms of inheritance tax. I am told that the list for last year of lost stars is no more or less than the years preceding it, however, because I am getting older, the loss resonates more with me as the celebrities have earned their place in my own life memories. Who could forget Alan Rickman in ‘Die Hard’, Prince with ‘Purple Rain’, Carrie Fisher and her legacy of ‘Star Wars’ or George Michael with ‘Careless Whisper’? But because I am getting older, these deaths, particularly the more unexpected ones, make me consider my own mortality and how abruptly it can come to an end.

We all will die, that is as certain as night follows day, yet not all of us think, or don’t like to think, what will happen once we are gone or what stress we may cause to the people we leave behind. Simple steps taken during lifetime may temper or even reduce the amount of problems caused.

We have all read news stories of families squabbling over estates. Indeed I recall a surge in claims on estates I was administering around the time of the 2008 crash. At the time, people faced with an uncertain financial future and austerity considered all their potential sources of income. Compromise soon flies out of the window where hardship may be a real possibility.

Similarly we all know of families where a large amount of Inheritance Tax was paid, sometimes unnecessarily. Isn’t it therefore a logical step to spend some time talking to a solicitor to make sure you and your estate do not become an anecdote? So have you made a Will?

Making a Will seems such an obvious thing to advise, but still much of the UK population does not have one in place because they think they don’t have anything worth leaving, they haven’t got round to it or they make assumptions as to how the estate will pass.

By taking the time to make a Will you can:
• Specify how you want your estate to be divided;
• Make sure bequests to cohabiting partners, friends and charities are included;
• Make sure, in the case of married couples, planning is undertaken to cap how much may be lost in paying care home fees; and
• Make sure you can minimise the amount of Inheritance tax paid by your estate.

The last couple of points are not guaranteed just by making a Will, but making a Will in conjunction with legal advice. Do you have business interests? Do you have children from a previous relationship? Have you adopted or have step-children? Why not take the time now to make sure you take appropriate steps to make sure everyone you want to benefits from your estate, you minimise the tax payable as a result of those wishes and at the same time maximise how much will pass to your nearest and dearest.

Best Private Wealth Lawyer UK 2016

Cobham-based law firm Mundays can announce Partner and Head of Private Wealth, Julie Man has been named Best Private Wealth Lawyer UK in the ‘2016 Women in Wealth Awards’ which showcases the very best women from across the financial environment.

Julie joined Mundays as a solicitor in November 2006 and progressed to Associate, Partner and most recently Head of Private Wealth in 2013. The detailed knowledge and experience that Julie has acquired over the last ten years of continuous progression at Mundays has helped to establish her as a solid legal adviser in the private client arena, both internally within Mundays and externally. This has been complemented by an approachable and grounded style, which has earned her an enviable reputation for success amongst her loyal client base. Her ability to distil complex points of law and clearly explain them based on the nuances and practical objectives of each client has been highly praised.

Valerie Toon, Managing Partner at Mundays comments on this fantastic achievement: “Julie believes that there really is no ‘typical’ client. It is important to be flexible and adaptable to the needs of the client. Julie leads a hand-picked team that are chosen for their exceptional abilities. Julie deserves this award for the commitment she has shown to her career over the last 10 years at Mundays.”

Commenting on the programme, Awards Coordinator Daisy Johnson stated: “Women’s contribution to the finance industry cannot be underestimated, and as such this awards’ programme is showcasing the most committed, successful and professional women from across the market. I am truly proud to be able to highlight the hard work of every one of my winners and would like to wish them an even more prosperous future.”

To learn more about all the deserving award winners and to gain insight into the working practices of the ‘best of the best’, please visit the Wealth & Finance website where you can access the winners’ supplement.

Probate and beyond
When the time does come and a loved one dies, sometimes grief is rudely forced aside whilst the administration of the estate is dealt with.

This is, of course, the red tape associated with a person dying; drawing a line under their paper and digital life, gathering in assets, settling debts and distributing the remaining estate in accordance with the Will or statutory rules of Intestacy (where there is no Will).

An executor is appointed under the Will; an Administrator under Intestacy (where there is no Will); together they are Personal Representatives or PRs. Normally these are family member(s) or close friend(s), occasionally it may be a bank, solicitor or other professional.

In addition to dealing with asset providers, the PRs may also need to report to HMRC (Income Tax and Inheritance Tax) and apply to the Court for Probate (the Court order recognising who has the legal authority to deal with the estate).

Dependent on the size and complexity of the estate, this can become an onerous task and comes at the worst possible time when trying to cope with loss. Reverting to a solicitor to assist can relieve the day to day burden leaving you to make the important decisions and sign documents.

Too often we have seen PRs try to rush the process. We, of course, recognise that they want to move on following the bereavement, but they often end up falling foul of HMRC and can risk potential litigation by disappointed beneficiaries as the result of financial loss to the estate.

Binding obligations set out in the Will are ignored, Nil Rate Band (NRB) or Life Interest trusts set up as part of tax or care home planning (usually on the death of a first spouse) are incorrectly dealt with, if at all, and can often lead to additional tax on the death of the surviving spouse, penalties, interest and massive delay.

Everyone is different, not everyone wants solicitors to deal with the administration of their estates. However, recognising when professional advice is required is half the battle. If there is a legal document, such as a Will, which has plenty of jargon, why not take an hour to speak to a solicitor so you understand the implications rather than taking a chance?

It could save more time, money and stress in the long run.

essence info

Mundays LLP
Cedar House, 78 Portsmouth Road, Cobham KT11 1AN
Telephone: 01932 590500
Website: www.mundays.co.uk

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Mitchell Thompson is an Associate in the Private Wealth Department at Mundays. He advises on a broad range of private client matters, including Wills, estate planning and the administration of estates. He is also experienced in dealing with lasting powers of attorney and deputyship applications to the Court of Protection.

Mitchell can be contacted on 01932 590664 or at mitchell.thompson@mundays.co.uk.