Swayne Johnson Solicitors celebrate successful merger with Llandudno Solicitors – click here

 

STOP PRESS!!
Lasting Powers of Attorney:

The Mental Capacity Act 2005 has introduced the concept of a Lasting Power of Attorney. This type of Power of Attorney replaces the former Enduring Power of Attorney. It is designed to enable a person to appoint someone to act on their behalf in the event of mental or physical incapacity. There is also a provision to enable you to appoint someone to make welfare decisions on your behalf.

The new regime is somewhat more time consuming to put in place as the Power of Attorney document is approximately 22 pages long. Having said that, it is a relatively straightforward document to understand. The Power of Attorney must be certified at the time it is made and it cannot be used until it is registered at the Court of Protection. Currently, we believe the registration fee for each Power of Attorney, (ie the Court Fee) will be £150.00

Contact:
Lynette Viney-Passig
Dilwyn Jones

More on Powers of Attorney

 

Pre-Budget Report- Inheritance Tax and Capital Gains Tax

Most clients will now be familiar with the changes announced by the Chancellor in his latest pre-Budget report. The small print is currently being studied by lawyers and accountants to clarify the implications for clients.

It will have come as good news for couples to hear that any unused Nil Rate Band on first death will be able to be transferred for IHT purposes to the estate of their surviving spouse or civil partner. Effectively, this could mean that the surviving spouse or registered civil partner could benefit from a tax exemption of £600,000.00.

Many people will already have carried out this type of tax planning by creating Nil Rate Band Trust Wills. Now, any unused Nil Rate Band on the first death will be able to pass to the estate of a surviving spouse or registered civil partner who dies on or after the 9th October 2007. This applies regardless of when the first spouse died- therefore anyone who was already a widow or widower or surviving civil partner at that date, will also benefit from this measure. There will be detailed regulations on how the transfer can be achieved and how the claim is made.

Questions arise as to what will happen if some of the Nil Rate Band has been used and some has not, or what rate is applicable. In addition, there may be questions if a person has been……………………………. Married twice (or more).

Whilst good news on the face of it, there is no doubt that the proposals are not as straightforward as they could be. For example, the Nil Rate Band has not been raised for lifetime gifts, one could already carry out this type of planning using appropriately worded Wills and the new rules do not apply to co-habiting couples, siblings who live together or divorced people.

In many cases, couples should still consider IHT planning in the Will. For existing Nil Rate Band Trusts, Particularly, it is probable that Nil Rate Band Trusts Wills should be left in place for maximum flexibility. Remember, Governments and legislation can change! However, do take advice on your particular situation.

Advantages of having a trust in your Will include the fact that any growth contained within an existing Nil Rate Band Discretionary Trust will not fall within the survivor’s estate. The IHT saving can be greater using the Nil Rate Band Trust rather than relying on the new measures. There are also benefits for surviving spouses being allowed to borrow funds from the Nil Rate Band Trust in order to further reduce their estate for IHT purposes, and also it can be used for protecting the value of the Trust Fund from assessment by Local Authorities if long-term care becomes a necessity. Where there are children from a previous marriage, it may be more appropriate to have a Trust set up in any case so that you can be sure that your estate passes to your children. and in that way is protected.

Changes to the Capital Gains Tax system for individuals, Trustees and Personal Representatives was announced for disposals on or after the 6th April 2008.

A single flat rate of CGT will apply of 18%. However, taper relief for business and non-business assets will no longer apply for disposals after that date. Indexation allowance for assets acquired prior to 6th April 1998 will no longer be available.

There are some more complicated rules regarding share identification and March 1982 values which I will not go into here. Suffice to say that the Chancellor is attempting to “simplify” CGT!

Whilst a flat rate of CGT will be welcome, it should be borne in mind that if you are undertaking business disposals, or disposing of investment assets, you should seriously consider timing the disposal appropriately. Generally speaking, those with business assets to dispose of who will benefit from the taper relief and indexation allowance should review matters to see if it is worthwhile bringing forward plans crystallising any gains before the change over happens. It is essential that if you are in this situation - whether you are disposing of a business asset or an investment asset such a second property - you contact us for further advice. There is much lobbying against this proposal and so watch this space!

Sarah Noton
Swayne Johnson Solicitors.

Home Information Packs - view all the information here

Swayne Johnson Solicitors sponsor local stage production at Theatre Twm o'r Nant.

The production called "The Long Way Home" takes place on Saturday 13th October and is based on a traditional folk tale from the heart of old Europe. The play tells the poignant story of friendship, danger and humour as two travellers face many hazards on their long way home. The play, at Denbigh's Theatre Twm o'r Nant, is performed by a Cardiff based professional theatre company, High Jinks Theatre Company, as part of its Autumn Tour. The play is internationally performed and acclaimed, written by Charles Way, and which has toured across Europe including Croatia, Germany and Switzerland. Swayne Johnson decided to sponsor the play as part of the company's support for the arts. Commenting about their decision to sponsor the production, Jon Moriarty, Director of Swayne Johnson, said "our Company is committed to supporting the arts locally. The Long Way Home is a wonderful story, beautifully told and we were more than happy to support this production." The production is also supported by the Arts Council For Wales in partnership with Denbighshire County Council.

Cymraeg