Tag: Residential Care

Government Announces Significant Overhaul Probate Fees

Government announces significant overhaul of probate fees from 1 May 2017

Last February, the Government began a consultation into probate fees and how much families should be charged for extracting the Grant of Probate.

Their proposals outlined a move away from the current application fee of £215 for an individual and £155 for professional, to a new tiered fee system based on the value of the estate in question:

  • Estates valued at less than £50.000 – No probate fee
  • Estates valued at £50,000-£300,000 – £300 probate fee
  • Estates valued at £300,000-£500,000 – £1,000 probate fee
  • Estates valued at £500,000-£1m – £4,000 probate fee
  • Estates valued at £1m-£1.6m – £8,000 probate fee
  • Estates valued at £1.6m-£2m – £12,000 probate fee
  • Estates valued at more than £2m – £20,000 probate fee

We introduce clients to King’s Court where the clients show interest.
You can read about working with King’s Court (KC) here

Kings Court Trust was one of 853 firms or individuals to formally respond to the consultation.

They voiced strong opposition to the plans, citing the fact that the proposed fees would potentially cause significant financial difficulties for families already having to deal with the loss of a loved one.  Despite overwhelming opposition, the Government has approved the changes to the fee structure and these will come into action from 1 May 2017.

What does this mean for clients that use King’s Court
through Jan Oliff Financial Planning?

Our clients will have the fee changes clearly explained to them.
KC is committed to supporting any families who need advice and support on what the fee structure change will mean for them and are currently investigating a number of options that will allow us to help families manage the additional cost of the Grant of Probate as a result of the new structure.

How will this impact on Kings Court Trust’s fixed fee service?

KC’s comprehensive estate administration service will still be offered with a guaranteed fixed price.

They have removed the cost of the Grant of Probate as a fixed charge and will not be reintroducing this until there is a clear understanding of the new processes that the Probate Registry will be putting in place.

Instead, KC will explain clearly how the new fee structure will impact on the estate in question so that clients have as much information as possible.

Why Would I Choose Someone with Passion?

As Christmas approaches, like so many other business people, I am starting to focus on

Read moreWhy Would I Choose Someone with Passion?

The PFS Annual Conference

In any profession is important to share with other professionals, exchange ideas and learn

Read moreThe PFS Annual Conference

Having a LPA in Place Should be Common and Natural

The Alzheimer’s Society reports that more than one million people in the UK will have dementia by 2025. Accidents, strokes, brain injuries and Parkinson’s Disease can also affect your ability to make your own decisions. Handling financial affairs can become virtually impossible and could cost a great deal of money and load the burden on relatives.

A report from ‘This is Money’ on analysis by Key Retirement Solutions found that more than 11,500 families every year are having to go to court to appoint ‘deputies’ so relatives and friends can make decision on behalf of ill or incapacitated people.

lpaWithout a lasting power of attorney** (LPA) in place, it can be difficult to access bank accounts.

For example, a 2013 British Bank Association Booklet, “Guidance for People Wanting to Manage a Bank Account for Someone Else”, said: “If one joint account holder loses mental capacity, banks and building societies can decide whether or not to temporarily restrict the use of the account to essential transactions only.”

We have all warned how the restricting of a joint account has severe implications as the joint owner cannot freely withdraw what is their own money without an order from the Court of Protection which could be devastating, especially if this is their only form of income, such as their pension, paid into this joint account.

Having a LPA in place should be as common and natural as making a will.

The UK authorities introduced LPAs in October 2007, replacing the previous system of enduring powers of attorney (EPA) – although an enduring power of attorney created before October 2007 remains valid.

The Treasury advises consumers: “If you want to give one or more people the power to completely manage your money and property if you lose mental capacity – that is, if you can’t make decisions for yourself – you have to set up a permanent power of attorney.

The people who will manage your finances are called your without the other (good for spreading the load).

You should also choose at least one replacement attorney who would take over if their attorney died or could no longer act for them. If they are older and the people they choose are all the same age as they are, they may not end up being the best people to act if and when their help is needed.”

Setting up a power of attorney is a big step and you need to understand all the implications and may want to get good legal advice.

The person setting up a power of attorney must have the capacity to make their own decisions.

It is a good idea to get it set up well before you need it. It is much harder and more expensive for someone to help you with you money and property if you have already lost mental capacity. And if you get it set up now, it is there if something happens to you suddenly, like an accident or a stroke.

Setting it up does not mean you have to give up control.

It takes several weeks to register a lasting power of attorney – yet another reason to get it set up early. If you lost mental capacity during those weeks, your attorney would not be able to act for you in the meantime.

The attorney you choose should be someone you really trust and preferably younger than you. Many people choose their husband, wife, partner, another family member or a close friend.  You might choose more than one attorney.

If you do, they can decide whether they need to make decisions jointly (a good idea if they want two opinions on their finances) or whether each can decide things.

 

SEE this BBC item
Can Power of Attorney help protect your family against scams?
If an elderly relative starts to spend money irrationally, or in a way that is out of character, what powers do you have to intervene and stop them? Louise Minchin has heard from one woman who was worried about her father’s spending and when she eventually gained Power of Attorney over his affairs, discovered that more than £10,000 had disappeared from his bank account. We investigate what people can do if they feel their relative is becoming vulnerable to scams.   bbc.co.uk/programmes/p04c0yl6

 

** Lasting power of attorney in England; known by other names in other UK domains

Life through the rear view mirror

I recently read an article that said, amongst other things, that Barclays have realised 

Read moreLife through the rear view mirror