With the Covid-19 pandemic and especially the lockdown, we had an unprecedented demand from clients wishing to make a will so as to ensure the correct persons inherit from their Estate.

Death is something we all try to avoid thinking and talking about, albeit the lockdown has made a number of our clients put their affairs in order as to whom should benefit from their Estate.

No matter how old you are, it is desirable to make a Will and it is not unusual to change your Will at least 3 times during your lifetime as personal circumstances often change.

The stigma that you only need to make a Will when you have assets, for instance a property to bequeath, is not necessarily correct. You could be a parent who wants to ensure your children are taken care of by the guardian of your choice. You could be a single person, with no children or, no nearest relatives, but have friends who have helped you during lockdown, that you wish to make some provision for. There is a vast differential of circumstances for making provisions in a will.

On the 25th July 2020, the Government legalised the remote witnessing of Wills so as to make it easier for people to record their final wishes during the coronavirus pandemic. These changes will be made via new legislation in September, which amends the law to include video-witnessing.

This move maintains the vital safeguard of requiring two witnesses- protecting people against undue influence and fraud.

Should I make a Will?

•    To ensure the correct persons inherit your estate. Without a Will, the law dictates who will inherit your estate (nearest blood relative).

•    For married couples or civil partnerships, to make sure your spouse or partner inherits everything from your estate if that is your wish.

•    For unmarried couples, to make sure that your partner is provided for.

•    Ensure your children are taken care of by the guardian of your choice, and to make financial provisions for your child’s upkeep and education.

•    identify the person(s) who will sort out your financial affairs after your death . Whoever you appoint will become an ‘Executor’ and are often family members, friends or professional advisors such as your solicitor.

•    To minimise the amount of Inheritance Tax payable on your estate, or to help preserve assets in relation to care home fees.

•    To ensure all is not lost for the children after a parent’s second marriage.

In essence it is necessary for you to make a Will, so don’t put it off until it’s too late.

Contact our Private Client Department on 01942 206060 or email darrenearnshaw@wigansolicors.com

Instructions can initially be provided by telephone, home visit, at the office or by Zoom Meeting.

In an age of increasing digital progression, it is more important than ever to ensure that you have a Will. Whereas once upon a time, your loved ones would have accessed to photo albums and video tapes, many of our treasured memories are now stored electronically.

The recent case of Rachel Thompson highlights this important area. Her husband sadly died without making a Will. He was aged just 39 and left behind Rachel and their young daughter. Her husband, like most of us now, was keen on taking photographs and videos of the family using his mobile phone. When he died, Rachel did not have access to his passwords meaning that she was unable to access treasured memories of over 4500 photos and 900 videos of the family. After 3 years of pursuing legal action, Rachel has now won her case with Apple for this information to be released to her.

So what can we do to protect our loved ones from a similar fate?

Firstly, it is important to make a Will. This will mean you are able to appoint a trusted person to deal with your estate upon death. When making your Will, ensure you make your legal representative aware of any information you store digitally e.g. on your mobile phone, computer or cloud. You should ensure that you collect and collate as much information regarding your online accounts as possible, including user names and passwords. These will not form part of your Will which will become a public document upon your death but will be stored separately. You must ensure that these are regularly kept up to date. You should ensure that your passwords are stored securely and discreetly and ensure that it is not in breach of any terms of service with the chosen provider. 

You may also wish to consider preparing a letter of wishes to go with your Will explaining how you would like your digital assets to be dealt with on your death and who you wish to have access.

We are sure that the law will develop in time as the importance of digital assets become more and more recognised. However, until a more unified process is put into effect, you need to ensure that you have a well worded Will which reflects you wishes and feelings not only in relation to your physical assets, but also your digital ones.

To arrange an appointment with our private client team, please contact Paul Aynsley or Kim Busby on 01942 206060.

www.wigansolicitors.com Tel: 01942 206060 Address: 26 Bridgeman Terrace, Wigan WN1 1TD

Twitter: @MBHSolicitors

Here at McCarthy Bennett Holland we want to ensure all our clients are looked after and feel comfortable and welcomed at all stages through their matter.

Our staff have recently undertaken training with Dementia Friends for the second time to ensure all our staff have a greater understanding of what it is like to live with dementia and are aware as to how to help those who are living with dementia. We want to ensure that we are able to assist people to continue to live independently and to raise awareness to others as to how they can help.

Wigan Borough has previously been named the most dementia friendly town in the UK and we want to ensure that this reputation continues in our local area; supporting local people with local businesses.

We have also been named as the first Age Friendly Solicitors in Wigan town centre. This means that we are able to provide a downstairs seat and meeting room to those who need it. We can make special adaptations to the documents we prepare, including large print. In our private client team specialising in Wills, Lasting Powers of Attorney and Probate matters, we are also able to arrange home visits to ensure our clients with additional needs have all the access they need to specialist legal advice.

If you need legal advice and you are living with dementia, or know someone who is, or if you or any family member requires any special adaptation to make the legal process smoother, we are here to support you and make it as simple and straightforward as possible. Please do not hesitate to contact our friendly and approachable team on to discuss your needs.

To arrange an appointment with our private client team, please contact Paul Aynsley or Kim Busby on 01942 206060.

www.wigansolicitors.com Tel: 01942 206060 Address: 26 Bridgeman Terrace, Wigan WN1 1TD

Twitter: @MBHSolicitors

Figures tell us that over 60% of the population do not have a Will. Of those people, over 80% have minor children.

Why are so many people without Wills? For the majority of people, it’s likely that we just don’t like to think about death. However, it may also be because of financial reasons, a perceived lack of urgency or just not being able to make our minds up about what we would like to happen to our estate or who we would wish to care for our children without us.

Sadly, the one thing which is certain in life is that we will die but we have no control over how or when this will happen. Whilst this may appear to be a harsh statement, it highlights that a Will at any age is extremely important for a number of reasons.

The main reason is to have control over what will happen to our assets. Many may believe that their assets will pass automatically to those they want to receive their assets, even in the absence of a Will, but this is not necessarily true. Here are some of examples:-

What if you are not married? Your partner will not inherit you estate in the same way as they would if you were married.

What if you are going through a divorce? Until such time of your Decree Absolute, you remain married and your spouse can still inherit even after separation. There are also other situations where your former spouse could inherit which is unlikely to be in line with your wishes.

What if you have step children? Your step children could inherit if you are married because your spouse would inherit your estate and the assets then pass down their line. Your own children could theoretically miss out depending on the value of your estate.

A carefully drafted Will can avoid these pitfalls. It can also allow you to provide your wishes in terms of cremation/burial, appointment of a guardian for your children and charitable donations as well as crucial tax planning.

From as little as £130 plus Vat and disbursements it will ensure that you can provide for the people who matter most to you in the way that you intended. A Will can also make the process much easier for your loved ones to deal with your estate during a difficult and upsetting time for them.

To arrange an appointment with our private client team, please contact Paul Aynsley or Kim Busby on 01942 206060.

 

It can be a very difficult time when someone we know or love starts to become unable or incapable of making their own decisions. Without the correct safeguards in place, where someone becomes unable to perform simple tasks such as paying bills or consenting to medical treatment, It can be almost impossible in some circumstances to ensure that their wishes are reflected and carried out.

The Office of the Public Guardian allow a person (‘the Donor’), whilst they have mental capacity, to appoint individuals (‘Attorneys’) of their choosing to step into their shoes and make decisions on their behalf should they ever lose the ability to do so themselves. This enables the individual to be secure in the knowledge that things will be done as they would like them to be, affording a certain amount of autonomy to that individual, which can often be of great comfort. Attorneys can be chosen to deal with (a) your property and financial affairs; and (b) your health and welfare, or both.

If you are ever appointed as an Attorney to handle someone’s affairs, but are unsure what you must do, please bear the following information in mind:-

The Mental Capacity Act (2005)

 This legislation sets out 5 key rules surrounding the loss of mental capacity:-

1.  The Donor should continue to make their own decisions for as long as they are able;
2. The Attorney should give them all the help they need in making the decision before deciding they cannot make it;
3. An unwise or seemingly bad decision does not mean the Donor lacks capacity;
4. Any decisions made by the Attorney must be in the best interest of the Donor;
5. All that an Attorney does should restrict the Donor’s basic rights in the least possible way.

These rules should form the foundations of any decision you make on behalf of the Donor whilst acting under a Lasting Power of Attorney. Before making any such decisions, you should always check the physical Lasting Power of Attorney document for any instructions, restrictions or conditions that the Donor may or may not have placed on you, I.e. they may not want you to act in respect of the family business or similar. Attorneys can be appointed alone, together with another person (unanimous agreement on all decisions) or together with others but with the ability to act independently of the other Attorneys. Other Points to Note.  You are, as an Attorney, entitled to claim back any out-of-pocket expenses that you incur in performing your duties, examples may include paying for travel or postage costs. These amounts can be recovered from the Donor’s funds, but they must always be reasonable and you must not benefit from it. If the Office of the Public Guardian feels that they are not proportionate, you may be investigated and have to repay the money. You could also be removed as an Attorney by the Court of Protection.  You cannot be paid for acting, unless you are acting in a professional capacity, I.e. as a solicitor. However, if the Donor has decided that they want to pay you for doing this, they may choose to write instructions to that effect in the LPA, in which case you can be paid in accordance with those wishes.

These are only a few key points surrounding the appointment and duties of Attorneys and if you do require additional advice, or would like to discuss the options surrounding putting Lasting Powers of Attorney into place, please contact our Private Client team who specialise in this area of the law.

Contact Paul Aynsley, solicitor or James Ford, trainee solicitor at MBH Solicitors, to discuss your wills, probate & estate management requirements in confidence at:

www.wigansolicitors.com Tel: 01942 206060 Address: 26 Bridgeman Terrace, Wigan WN1 1TD

Twitter: @MBHSolicitors

A recent case in the High Court has highlighted some potentially serious problems with the construction of many Mirror Wills. Mirror Wills are wills made by Husband and Wife, in relatively similar terms, but are fully amendable/revocable (even on the death of the first spouse, unlike Mutual Wills).

The problems arise with the use of ‘Survivorship Clauses’, which allow for an additional element of control in that the testator (the person making the will) can decide where his estate goes when the original gifts fail or the recipient is no longer living. Whilst the decision on whether or not to use such a clause (I.e. for an Inheritance Tax advantage) is one for careful consideration and discussion with your solicitor, it is a frequently seen inclusion in most modern mirror wills.

The wills in question did not deal with what would happen in the event that both Husband and Wife died at the same time. As a result, they were deemed to pass gifts (both cash and chattels) to the beneficiaries twice, which is often the exact opposite of what is intended. Usually, the intentions of those making the wills would be that everything would pass to the survivor and only on the death of the surviving spouse would the gifts be made to the beneficiaries, even though both wills detailed the gifts.

It was held that the clause used was wide enough in scope to apply so that the younger spouses failure to survive by 28 days meant that the gift to him did not take effect. The couple had died in circumstances where it was impossible to tell who had died first, thus the gifts under both wills were deemed effective. There is a general statutory rule (‘Commorientes’) that in those circumstances, the younger of the two is deemed to have survived the elder but the Court found that in these circumstances the survivorship clause had overridden this rule.

In this case, both had left their estate to the survivor and then on to other beneficiaries. As it could not be determined who had died first, neither could be deemed (on the wording of the wills) to have survived the other, therefore the primary gifts under both wills fail and the wills have to be administered in accordance with the substitute provisions in the event that the original gifts fail. As a result, all of the gifts under both wills were valid.

In summary, the problem was with the use of a standard precedent clause by the solicitors preparing the mirror wills. If the correct clause/wording had been used, the gifts would not have taken effect twice. This is why it is so important to instruct solicitors experienced in drafting effective mirror wills and gifts that only take effect on the survivors death.

The Wills and Probate team at McCarthy Bennett Holland Solicitors have the relevant expertise to ensure that this sort of problem does not arise on your death and are readily available to assist you. Please note that you should always explore the Inheritance Tax implications of your will in deciding whether or not any such clause should be used.

Contact Paul Aynsley, solicitor or James Ford, trainee solicitor at MBH Solicitors, to discuss your wills, probate & estate management requirements in confidence at:

www.wigansolicitors.com Tel: 01942 206060 Address: 26 Bridgeman Terrace, Wigan WN1 1TD

Twitter: @MBHSolicitors

It is well known that a person making a will or planning their estate can make significant tax savings through the giving of gifts that fall within an exemption to tax or where they are deemed to be potentially exempt transfers (PETs).

Everyone is entitled to an ‘annual exemption’, a threshold within which no tax is payable on any gifts not exceeding £3000 in each tax year (6^th April to 5^th April). This is one of the more straight forward tax reliefs available, along with transfers between married couples (no inheritance tax is payable if gifts are made between spouses) and those made in consideration of marriage or civil partnership (the thresholds in respect of this type of gift are outside of the scope of this blog).

Dispositions for maintenance of family

One interesting provision, which can escape the consideration of many tax and estate planners, is that dispositions falling within S11 of the Inheritance Tax Act 1984 will escape tax altogether. This is because, instead of qualifying as an exemption to the usual tax rules, they are not considered as transfers and therefore removed from the scope of tax. These include:-

1.  The maintenance of the other party to the marriage;
2. The maintenance, education or training of a child of the marriage, or for an illegitimate child (for a period ending not later than a year from when the child turns 18, or after turning 18 ceases to undergo full-time education or training;
3. Provision for the care or maintenance of a ‘dependent relative’ (a relative of yours or of your spouse who is unable to care for themselves due to old age or infirmity).

As can be appreciated, this can substantially reduce the tax burden on large estates. An example of such a disposition could be as follows:-Angela is unmarried with a young daughter (Charlotte) and successfully manages her own business. As such, her estate is estimated to be worth around £1Million. If she were to die and her will simply left the entirety of her estate to Charlotte, she would benefit from her nil rate band (currently £325,000) and the remainder of the estate would be taxed at 40%. Essentially, this would leave a tax bill of £270,000 and Charlotte would receive £730,000. If Angela had settled her assets by way of lifetime transfers that fell within the S11 provisions above, there would be no Inheritance Tax to pay at all and Charlotte would be £270,000 better off. Similarly, had Angela disposed of her assets to pay for the care and maintenance of her elderly mother, she could have reduced her tax liability.This is not an exhaustive explanation of the various different ways in which individuals can benefit from making gifts during their lifetime. Other options, include the individual having to survive the gift for a period of 7 years before it becomes exempt from the general taxation rules (please note that gifts made between 3 and 7 years are taxed on a scale and this is often known as ‘taper’ relief). There are, of course, various rules that apply in these circumstances and, along with any of the above, should only be considered following advice from a professional.

If you do need advice in respect of the planning of your estate or in relation to any transfers that you have made recently (or within 7 years), our dedicated Private Client team are on hand to assist you with any such matters.

Contact Paul Aynsley, solicitor or James Ford, trainee solicitor at MBH Solicitors, to discuss your wills, probate & estate management requirements in confidence at:

www.wigansolicitors.com Tel: 01942 206060 Address: 26 Bridgeman Terrace, Wigan WN1 1TD

Twitter: @MBHSolicitors