Is inheritance tax soon to be abolished?

Rumours are rife that the Chancellor, Jeremy Hunt is going to slash or abolish Inheritance Tax in this week’s Autumn Statement.

This seems unlikely given that the current nil rate band allowance has been in place since April 2008 and is frozen until April 2028.

What is Inheritance Tax?

Inheritance tax is intended to tax the wealthy, however, due to the lack of increases in the inheritance tax allowances in recently years, and the increase in the value of land, more Estates are being subject to inheritance tax currently than for many years.

Approximately 4% of Estates are now subject to inheritance tax.  Although this is a very small percentage, the revenue in tax receipts for the 2022/23 tax year was around £7bn having increased 15% from the previous tax year and broke previous records.

Contact our expert Probate team today

The current inheritance tax system is complex, however, our expert team will ensure that all available allowances are claimed and the correct amount paid. Speak to our team today by calling 0191 691 3417 or email probate@browells.co.uk.

Enduring Powers of Attorney – I or a family member has one, what do I do?

Until 1st October 2007, it was possible to appoint attorneys to safeguard your financial affairs under an Enduring Power of Attorney (EPA).

What is an Enduring Power of Attorney?

An EPA is a legal authority granted to one or more people, known as attorneys, by a mentally capable person to act on their behalf in property and financial matters should they lose mental capacity.

An EPA can be used before it is registered, provided that the person granting the power (the donor) has mental capacity. However, if the donor has lost capacity or it becomes apparent that they may be losing mental capacity, an EPA cannot be used until it has been registered with the Office of the Public Guardian. An EPA made before 1st October 2007 remains valid and can be registered as long as the donor is alive. During the period registration, attorneys can only use the EPA in limited ways.

The pitfall of an EPA is that it only gives authority to deal with financial affairs. If you become mentally incapable, your attorneys have no authority to act in respect of your health and welfare.

If you have a loved one or family member who executed an EPA before 1st October 2007 and is losing or has lost mental capacity, our team are more than happy to assist with the registration process.

Alternatively, if you are reading this and you have an unregistered EPA and have mental capacity to make your own decisions, you should consider making Lasting Powers of Attorney (LPAs) to replace your EPA.

What is the difference between lasting and enduring power of attorney?

There are a few differences when it comes to EPAs and LPAs. EPAs can be used immediately after they are signed, but can only be used following a loss of capacity following registration, whereas LPAs can’t be used until they are registered and can be used with or without capacity depending on the person’s stated preference. Lasting power of attorney for health and welfare can only be used following the loss of capacity.

LPAs superseded EPAs following a review that determined a more robust and complex system should be put in place. LPAs enable you to appoint a trusted person to manage your property & financial affairs and health & welfare, should you become mentally incapable.

Speak to our dedicated team of solicitors today

If you would like to obtain more information or schedule an appointment to discuss your situation, please don’t hesitate to reach out to us. You can contact us on 0191 2503200 or email probate@browells.co.uk

All initial 30 minute consultations are free of charge.

Why it’s Important to Get Expert Legal Assistance for Estate Planning and Probate Proceedings

Estate planning and probate proceedings can be difficult and complex processes. When dealing with the division of assets, the details of a will or the transfer of real property, it is important to have trusted and expert legal assistance.

A solicitor can provide invaluable advice and guidance throughout the entire process, from creating a comprehensive estate plan to filing for probate. With the help of an experienced solicitor, you can ensure that your estate is handled according to the wishes you have set out in your will, and that your assets are distributed in a timely and efficient manner.

Benefits of Hiring a Solicitor for Obtaining a Grant of Probate

Hiring a solicitor to obtain a grant of probate can bring numerous benefits.

Firstly, their knowledge and expertise in the probate process can ensure that everything is handled correctly and efficiently. This can significantly reduce stress and emotional strain on you and your family during an already difficult time. Additionally, a solicitor can ensure that your estate administration is handled promptly and in accordance with your wishes, while also protecting against any potential errors or disputes. Lastly, hiring a solicitor can provide a cost-effective approach to probate matters, saving you time, money, and potential complications.

1. Knowledge and Expertise in the Probate Process

When it comes to navigating the probate process, having a solicitor with knowledge and expertise in this area can make all the difference. They understand the intricacies and requirements of probate proceedings, ensuring that everything is done correctly and efficiently.

2. Reduced Stress and Emotional Strain

Losing a loved one is already an emotionally challenging time, and dealing with the complexities of probate proceedings can add additional stress. However, by hiring a solicitor to handle the process, you can alleviate some of that burden. They will handle all the legal aspects, allowing you and your family to focus on grieving and healing. Having someone knowledgeable and experienced to guide you through the process can provide reassurance and support during this difficult time.

3. Protection Against Errors or Disputes

One of the key benefits of hiring a solicitor for obtaining a Grant of Probate is the protection they can provide against errors or disputes. Probate proceedings can be complex, and any mistakes or discrepancies in the process can lead to legal issues or family conflicts. A solicitor can ensure that all necessary legal requirements are met, minimizing the risk of errors or disputes.

4. Cost-effective Approach to Probate Matters

When it comes to probate matters, hiring a solicitor can actually save you money in the long run. Their expertise ensures that the process is carried out efficiently, minimizing unnecessary costs and complications. By avoiding potential errors or disputes, you can prevent costly legal battles down the line.

Contact our Wills & Probate team today

Our team of experts are here to make this process as straightforward as possible,  please contact us on 0191 2503200 or email probate@browells.co.uk to arrange a free initial consultation.