General Chat

Hi there,
Can anyone help me with regards to sorting out the legal jargon used .
We are both retired and need some advice.
Regards.
Michael.

Hi Michael - presumably you are referring to your own Wills? As they are such important documents, it really would be best to obtain professional advice rather than rely on GR members. With the best 'will' in the world, we could end up misinforming you.

If it's just a phrase or so, there could be definitions on Google. Your local reference library may have Law Books you could consult

Contact your local Citizens Advice Bureau. You will be able to make an appointment to speak to an expert.

We made our wills many moons ago but circumstances changed for our daughter ,ie divorce address changes etc Plus other family members had passed on so they generally needed updating

The price had changed but as we did reciprocal simple wills they worked out at about £120 each.

We made our daughter one of the executors. She did move house but all that was needed was to put in the solicitors file her new address

I think for legal and safety for those that are left after a passing its best to get wills done by a solicitor. After all if you have assets to leave then you should be able to afford to do things legally .

Badly done wills can be a nightmare for those left to sort things out

Just to add to the good advice already posted, you could take a look at this for advice and guidance :

http://www.ageuk.org.uk/products/financial-products-and-services/legal-services/

Hi again,
I am 73 and my wife is 68 with one son[unmarried]aged 30.
We plan to divide our property up between the three of us so as to limit the damage.
Our son having absolute power of attorney.
What is the 7year rule about Wills or has that changed?
Also mentioned is a non discretionary trust and is this linked in to the above?
We plan to go through a solicitor but i need to be clear in understanding these details.
Michael.

The 7 year rule relates to Gifts. You have to survive for 7 years otherwise the money (or value) is included in your Estate for Inheritance Tax purposes.

You really need to discuss the advantages and pitfalls of various trust with an Independent Financial Advisor and/or Solicitor. Ditto the house transfer.

If you were to put a third of the house in your son's name, who knows what situation your son may find himself within your lifetimes? It might jeopardise your own situation.

When you say divide up the property 3 ways 'to limit the damage' do you mean you wish to put that in your Will or do it before you make your Will?
If you are thinking of reducing possible Care Home costs for you and/or your wife, and wishing the property to go to your son, then you can split the property ownership now, via a solicitor, and the sooner you do this the better. It's straightforward and involves the usual Land Registry and conveyancing documentation. I have done this myself, so if you need further info just drop me a private message I'm happy to go into detail.
If that's not your reason I apologise.
And yes, the 7 year rule is to do with gifting and income tax.

A non discretionary trust is one where the trustee has no discretion or personal decision-making power in the matter.
Whereas a discretionary trust is one where trustees have discretion about how to use, say, the income of the trust, and sometimes the capital. An accumulation trust is one where the trustees have the power to 'accumulate' income (add it to capital). A trust may give trustees the power to do both.

"Inheritance Tax is usually paid on an estate when somebody dies. It's also sometimes payable on trusts or gifts made during someone's lifetime. Most estates don't have to pay Inheritance Tax because they're valued at less than the threshold (£325,000 in 2014 to 15)".

This is a direct quote from the Tax Man's website, HMRC (Her Majesty's Revenue & Customs).

Copy and paste this into your browser, Michael, and have a look at what they say: http://www.hmrc.gov.uk/inheritancetax/intro/basics.htm

Also, don't make any hasty decisions. ;-)