Category: News

Older couple overlooking beach

How Can I Reduce My Inheritance Tax Bill?

Posted on by Mark Reynolds

The children born to the ‘baby boomer’ population will inherit the highest amount of wealth any generation has ever seen, and perhaps for several generations into the future. They’re the wealthiest generation in history, collecting around £250,000, consisting mostly of property. This means the children of this generation are likely to inherit approximately £100,000 each. Even then, although it might raise their standard of living, it still won’t be enough to mitigate the impact of the housing crisis on younger generations.

What is inheritance tax?

Inheritance tax is a tax imposed on the property, money, and possessions of a person who has died. How much tax you should pay when you inherit these things depends on a variety of factors.

You don’t have to pay inheritance tax if:

  • The value of your estate is below £325,000
  • The deceased leaves anything above £325,000 to a spouse, civil partner, charity, or a community/amateur sports club

This threshold of £325,000 usually stands. However, if the deceased gives away their home to their child or grandchild, the threshold can increase to £475,000. If you pass it to a spouse or civil partner, there is no inheritance tax to pay on the home. Also, if you’re married or in a civil partnership and your estate is worth less than the threshold, you can add any unused threshold to your partner’s. This means your partners threshold before inheritance tax could be as high as £950,000.

Even if you inherit below the £325,000 threshold, you must still report your inheritance to HMRC. If you are due to pay inheritance tax, the standard rate is 40% of the value above £325,000. So, how can you keep this value to a minimum?

Keeping your inheritance tax bill low

We already mentioned in passing how you can lower your bill. Here’s how you can do it in more detail:

Gifting homes

You can pass on a home to your spouse or civil partner when you die and there will be no inheritance tax to pay for this. However, leaving it to another person in the will ensures it counts towards the value of the estate.

There is usually no tax to pay if the deceased gifted a home to someone, moved out, and lived for at least another seven years. If they wanted to continue living in the home, they would have to show a history of rent payments to the new owner.

Main residence allowance

The main residence tax allowance came into place in 2017. The rules state if you’re passing your home to a direct descendant you can benefit from an extra £150,000 of tax-free inheritance. Direct descendants include:

  • Children
  • Grandchildren
  • Great Grandchildren
  • Step-children
  • Adopted children
  • Foster children
  • Children under the guardianship of those passing on their estate

The tax-free amount is likely to increase to £175,000 by the 2020/21 tax year. This takes the threshold up to £500,000 tax-free income. This is only available if the home is worth under £2 million.

There are plenty of rules around paying inheritance tax. It’s hard to give blanket advice because the amount you’ll have to pay largely depends on the size of the estate, the assets involved, and individual family circumstances. So it’s always useful to get in touch with experienced solicitors who know the details of the inheritance tax process in enough depth to help you get the best outcome for your family.

 Mark Reynolds Solicitors specialise in helping our clients create and manage wills, manage lasting powers of attorney, get a seamless probate service, and manage joint tenancies to give your family peace of mind. Get in touch with us today by calling 0800 002 9577 to get started.

Man and young daughter holding hands

The Problem With DIY Wills

Posted on by Mark Reynolds

DIY wills are cheaper than going to a professional, but ‘you get what you pay for’ has never rung truer. DIY wills offer a cheap alternative, costing around £20, with some less than £10. In fact, for £19.99 you can purchase a ‘last will & testament DIY kit’ from WHSmith. You’re likely to find more of the same on Amazon and other online sites. But what might seem like a great deal on the surface could come with an unprecedented risk to your family and loved ones after you pass.

The risks

Just one mistake can render your will invalid. Your estate could end up in the hands of someone you never intended. It could leave your loved ones in an emotional mess with huge legal fees shrouding them. According to the Co-operative Legal Service (CLS), ineffective and poorly written DIY wills cause of around 38,000 probate ordeals per year.

The lack of professional guidance when choosing to use a DIY will allows ambiguities to arise leading to many becoming invalid in the UK. Where DIY wills have an unclear meaning, the Court is often the deciding voice determining the outcome for the beneficiaries. This doesn’t always go to plan.

Little mistakes, big consequences

In 2015, the case of Tinuola Aregbesola made the news. She was seeking hundreds of thousands of pounds in compensation from Barclays Bank. She claimed their £90 will-writing service resulted in her losing a stake in a valuable London home. The court documents detail how her father instructed half of the home go to Ms Aregbesola on his death.

However, her father’s wife, Ms Aregbesola’s step-mother, also partly owned the home. Because of this joint ownership, the home passed fully to his wife and Ms Aregbesola received nothing, contrary to the wishes written in the will. This all happened because Barclays didn’t sever the joint tenancy agreement to allow half of the property to pass to his daughter.

If you want your will to be unquestionable, there must be no mistakes and no oversights. As a legal document, while it isn’t impossible to create a DIY will, it’s hard for those who haven’t trained in law to do this successfully. There is more to writing a will than stating where you would like your estate to go, as highlighted by the Aregbesola case. Existing agreements such as joint tenancy agreements and partnerships might need dissolution if you want everything to run smoothly.

Staying up-to-date

It’s common for someone to write a DIY will and forget about it. It might seem like your work is done, but as you age, and your estate changes, so should your will and any other accompanying documents.

For example, in 1993, Princess Diana created a ‘letter of wishes’. In this letter, she requested her estate be divided differently to what she laid out in her will. She wanted her 17 godchildren to receive a proportion of her estate and, after her divorce, the value of her estate grew immensely. However, Princess Diana never updated the will to match her letter of wishes so there was no legal responsibility to carry out the requests in the letter.

Your will is a legal document. If it is correct, containing no mistakes, and overlooking no facts, it will stand in a court of law. If you set out the terms of your will in another document or verbally without updating your will, it’s unlikely these will hold up when disputes occur. Using a reliable, professional solicitor who specialises in will-writing will help you ensure your will sets out the correct terms. There will be no arguments after you’re gone.

The complexities of families

The structure of families is constantly evolving. The nuclear family isn’t the norm anymore. Families today comprise second, third, and fourth spouses, step-children, single parents, separated families, and hundreds of variations of all these things. The complexities of families are often what causes disputes when the will is invalid or unclear.

For example, if you get married, any will you’ve written beforehand will be invalid. It can only stay legally valid if you overtly express that you wrote the will in contemplation of the marriage. If you don’t update your will, you could leave your family confused, receiving nothing laid out in your previous will. If you’re separated from your spouse but aren’t legally divorced, they still count as your spouse. If you pass, they might be the one who receives your estate whether you planned for that to be the case or not.

For those who aren’t married, having an explicit, valid, and accurate will is essential to ensuring your partner can receive what you decide in your will. If you don’t, you could see it pass straight to your children or parents, leaving your partner to cope with emotional disputes.

What are the other options?

It’s understandable that many people choose DIY wills because they believe they can’t afford to pay for a professional service. It’s worth pointing out the money you spend on a professional will-writing service will be a fraction of the cost to your family if your will doesn’t hold up in court.

However, if a professional will is a little out of your price range, there are steps you can take to minimise the chances of inaccuracies and it becoming invalid. Check, check, and check your will again. There should be no spelling mistakes and you and two witnesses should sign it correctly.

Other things to take care of include:

  • Ensuring you set up trusts properly – If you want to gift money in a trust you must be explicit in this desire and say so. If you want the beneficiary to receive the money after a certain age, you must say so, otherwise, they may get a lump sum when you die.
  • Make provisions for when a gift fails – You might leave money to someone who died before you. Unless you updated your will, you must include a gift over clause. This details where the gift should go if the first choice is no longer available or cannot accept the gift.
  • Choose the right trustee – Choosing the wrong person to administer your estate can cause chaos. Your trustee needs to be competent and able to deal with the position.
  • Check what is legal – If you’re choosing to gift something like a house, ensure you check you can legally pass the house on to your chosen beneficiary. For example, make sure joint ownership doesn’t stand in the way.

The best thing you can do to make sure your will does what you intend is to seek help from professional solicitors. The cost of a will can vary depending on the complexity of your affairs. A simple will might cost between £144 and £240 pounds, while a specialist will can reach up to £600. In the grand scheme of things, it’s a small price to pay for security and peace of mind for all your loved ones who could end up losing hundreds of thousands if things don’t go to your plan.

The experts at Mark Reynolds Solicitors specialise in will writing, dealing with lasting powers of attorney, probate, and severance of joint tenancy. We have extensive experience in making sure our clients experience no ambiguity with their will, giving your family peace of mind. For more information about our services, get in touch on 0800 002 9577 today.

Personal injury resulting in wheelchair use

What Kinds of Personal Injuries Justify a Claim?

Posted on by Mark Reynolds

Personal injuries are what they describe: injuries that you sustain to yourself. These might be physical, but they can also be psychological.

If you suffer a personal injury, you can claim for the personal pain and suffering you experience, and also for expenses such as damaged clothing, travel costs, and certain help and equipment you have needed as a result of the injury.

Types of Personal Injuries

Personal injuries can vary, according to individual circumstances, but typical injuries include:

These injuries can occur as a result of vehicle accidents, equipment failure, work-related accidents, construction site incidents, medical malpractice and various forms of workplace negligence.

They can be slips or falls from walking on ice or tripping over hazards; a severe bite from a dog not on its leash; a chemical burn from spilled, hazardous materials.

Personal injuries may happen at work, in the home, while travelling or on holiday.

What Can You Claim For?

When it comes to personal injuries claims, you can claim for the pain and suffering you experience and compensation for your physical injuries. These injuries can include scarring, disfigurement and psychological injury.

How much you receive in compensation will depend on how severe your injuries are; whether your injury has resulted in long-term or permanent disability; and how much your injury has disrupted your life.

As well as claiming for pain and suffering, you can also claim for loss of earnings.

An accident may cause you to have to take time off work, and you can claim to recover any loss of earnings. Normally, this claim is based on your average take-home pay during the three month period before the accident.

You may also be able to claim for future loss of earnings, if, for example, you cannot return to your old job, or you find you must give up work because of an accident.

There are other expenses associated with personal injuries claims. These include damage to clothing or personal effects.

You might also claim for travel or prescription charges, if these are things you must pay following an accident.

If, following an accident, a family member has to look after you, you may be able to claim compensation for them, because they are providing services to you.

There can also be costs for nursing care and equipment following a serious injury, if, for example, you require a wheelchair.

Why Make a Personal Injuries Claim?

Sometimes people are scared off making a personal injury claim because they think the process will be too complex, drawn-out and will not be worth it.

Claiming is your right, under law, and, if you have experienced physical or mental discomfort, or a life-changing injury, then it is perfectly fair that you should be able to seek compensation for it.

Advice and Support for Personal Injury Claims

We can assist you with your personal injury claim, if you are eligible. Please contact us today for advice and support. Call our local office or complete our online contact form.

grandmother and children

Probate Fee Hikes Are Coming – How Can You Avoid Losing Out?

Posted on by Mark Reynolds

The Government is planning probate fee hikes, resulting from changes to the current structure for probate fees.

Probate is the process through which you get permission to deal with a deceased person’s estate. Since 1999, there has been a fixed fee for processing probate applications, but under the new structure, there will be different charging bands, with fees rising according to the size of the estate.

The plan is to use the revenue from this new fee structure to improve the court service.

The intended date for these changes to come into force was April 2019, but there may now be a delay to this due to the ongoing Brexit issue, as Parliament will need to approve the changes first.

Meanwhile, what can you do to avoid paying more in probate fees?

What the Probate Hike Will Mean

The extra you could end up paying in fees is an ascending scale based on what the estate is worth:

  • Estates from £50,000 to £300,000 will pay £250
  • Estates from £300,000 to £500,000 will pay £750
  • Estates from £500,000 to £1 million will pay £2,500
  • Estates from £1 million to £1.6 million will pay £4,000
  • Estates from £1.6 million to £2 million will pay £5,000
  • Estates over £2 million will pay £6,000.

Obviously, the biggest increases come with the estates worth the most.

However, estates worth less than £50,000 will pay nothing at all in probate fees. This previously only applied to estates under £5,000.

How Probate Applications Work

The Probate Registry is part of the High Court. It charges a fee for processing applications for a Grant of Representation. In certain estates, you need this grant to deal with assets such as property, bank accounts and shares, or to deal with any litigation on behalf of the estate.

The grant confirms an executor’s right to act under the will, or, where there is no will, the administrator’s right to act in an intestate estate.

Putting Off Probate

There can be delays to the probate process. Sometimes there is a missing will, or there may be discrepancies that question the will’s validity.

Disagreements or disputes about the validity of a will may take considerable time to resolve.

Sometimes there is no executor named, or the executors who are named are not expecting this and are unprepared.

Executors may have died since the will was written, or may be living abroad.

There can also be delays to probate due to missing beneficiaries of the will, or where beneficiaries are in dispute with each other.

Sometimes administration problems cause third-party delays to probate, such as calculations in valuing the estate and issues over inheritance tax payments.

There may be debts on the estate or problems accessing information.

There is also the impact of bereavement itself, leaving family members in the kind of emotional state where tackling probate seems too difficult.

Can You Avoid the Probate Hikes?

Already there have been delays to the proposed changes because of turmoil in Parliament over Brexit, but eventually they will come into force.

If you have delayed probate for any reason, now is the time to act, and seek professional advice to get things moving.

Advice and Support for Probate

We can assist you with your personal injury claim, if you are eligible. Please contact us today for advice and support. Call 0800 002 9577, or complete our online contact form.

 

Unconscious woman after brain surgery

Why Do Severe Brain Injuries Result in Unconsciousness?

Posted on by Mark Reynolds

Consciousness is a state of mind that refers to self-awareness. It’s what lets us think new thoughts and plan for the future based on past experiences. Consciousness is constantly shifting, but sustaining a severe brain injury can suddenly change conscious states from fully alert and aware to confusion and panic.

What Is a Traumatic Brain Injury?

A traumatic brain injury or TBI is defined as an injury to the brain from an external force. Common causes include physical assault, vehicle collisions, sports injuries, and falls. Judgement on an individual’s condition is evaluated based on Glasgow Coma Scale (GCS), with 15 being normal and three for more serious conditions such as comatose states.

Brain injuries are classified according to their severity:

  • Mild: Injuries that result in a brief loss of consciousness. The individual is awake with their eyes open but displays visible signs of disorientation.
  • Moderate: Injuries that result in a loss of consciousness from 20 minutes to six hours. Some brain swelling may occur, causing sleepiness or drowsiness.
  • Severe: Injuries that result in a loss of consciousness of more than six hours. The individual appears totally inert and eyes remain closed even with stimulation.

Why Do Brain Injuries Lead to Unconsciousness?

The reticular activating system (RAS) is one of the most important parts of the brain. It comprises a network of neurons that regulate wakefulness (a necessary condition for consciousness). Sudden trauma to the brain can cause the RAS to stop functioning properly, rendering a person incapable of becoming conscious even with stimulation.

Disorders of consciousness include coma, vegetative, and minimally conscious. Which state an individual is placed in largely depends on the type of injury sustained and the extent of any delayed trauma (known as a secondary injury).

Each case varies but sustaining a TBI can affect physical or cognitive abilities. Recovery is possible through intense rehabilitation and medical care, but the rate of improvement varies for each person.

If a loved one has sustained a serious brain injury, contact Mark Reynolds personal injury solicitors. We’ll help you determine if you have a compensation claim.

Caring for a loved one with brain injury

Coping With the Effects of Brain Injury on a Loved One

Posted on by Mark Reynolds

Traffic jams and difficult customers are minor stressors that many of us are all too familiar with. Most of us cope with such stressors in different ways. Some resort to vigorous exercise or set aside relaxation time while others may turn to alcohol or drugs.

But how do we even begin to cope when something truly tragic occurs?

One such example is traumatic brain injury (TBI) especially when a loved one is involved. TBI is defined as an injury to the brain from an external force and can be classified as mild, moderate or severe. It’s estimated that 69 million individuals sustain a TBI each year. Those affected face significant challenges, as an injury to the brain means a loss in physical or mental ability.

Effects of Brain Injuries on Loved Ones

The impact of a brain injury has wide-reaching consequences. And not just for the injured individual, but also to family relationships. Rehabilitation is possible but a sudden and traumatic event on a loved one means having to cope with a new reality.

Family members have a crucial role during rehabilitation, but their own wellbeing is also at stake. Intense feelings of denial and depression often accompany such traumatic injuries, especially when they occur in loved ones. Caregivers understandably can feel overwhelmed and frustrated. Having to adjust to major changes in circumstances can place an enormous burden on a family.

While the rehabilitation of a loved one is a priority, your own wellbeing shouldn’t be ignored.

Staying emotionally strong starts by recognising how your life has been changed by the injury. Having an open discussion about your feelings with your family members will help to improve understanding and overcome challenges. The best thing you can do is to try new ways of coping whether that means participating in support groups or joining local exercise classes.

If a loved one has sustained a brain injury due to the negligence of another party, contact Mark Reynolds personal injury solicitors and we can help you make a claim.

 

Analysis of traumatic brain injury

What Is a Brain Injury?

Posted on by Mark Reynolds

The brain is the most vital organ. It acts as the command centre for the entire nervous system, receiving and sending signals throughout the body. Cognitive functions like language and visual processing also rely on input from the brain.

Any physical blow to the head can disrupt those functions, resulting in mild to severe physical or mental disabilities. In fact, brain injury is one of the leading causes of death and disability worldwide according to the International Brain Injury Association.

What Is a Traumatic Brain Injury?

A traumatic brain injury or TBI is defined as a sudden blow to the head from an external force. The extent of the damage depends on several factors including the type of injury sustained and the health of the individual.

The Glasgow Coma Scale (GCS) is used to classify TBI according to its severity with 15 being normal and 3 reserved for those in a comatose state. A TBI can result in long-term problems on even basic cognitive functions, from getting ready in the morning to having a regular conversation.

Common causes of traumatic brain injury include:

  • Vehicle collisions
  • Physical assault
  • Sports injuries
  • Workplace injuries
  • Explosive blasts
  • Falls or accidents

Symptoms of brain injuries generally fall into four categories: Cognitive, perceptual, physical, and behavioural. Those with moderate to severe cases of TBI may exhibit the following:

  • Memory loss or concentration problems
  • Difficulty speaking or understanding others
  • Impaired decision-making ability
  • Changes in vision or sense of touch
  • Loss of fine motor skills
  • Extreme physical or mental fatigue
  • Problems with sleep
  • Increased aggressiveness

Injured individuals typically show improvement between six months to two years with rehabilitation. Each case is different though, as injuries typically damage a different part of the brain with varying degrees of force. For this reason determining the length of recovery is difficult.

Going through a serious injury can be a traumatic event especially when they occur in loved ones. If a loved one has sustained an injury from a third party, you may be able to make a claim. Contact Mark Reynolds personal injury solicitors today for more details.

British army soldiers under the union jack

Is It Possible To Make an Injury Claim Against the Army?

Posted on by Mark Reynolds

Serving in the armed forces can be hazardous for any number of reasons. While you might consider that often these hazardous conditions are part of the job, you can still make an injury claim against the army.

Duty of care is a legal or moral obligation to ensure the safety or wellbeing of others, and, like any other employer, the Ministry of Defence has a duty of care to its employees.

Therefore, if you suffer an injury while you are in the armed forces, you can be make an Armed Forces Compensation Claim (AFCC), if you feel your injury is a result of your employer’s negligence.

Who Can Claim Under an AFCC?

The AFCC applies to all military personnel injured on or after 6 April 2005, whether you are currently serving or not. A military injury is an injury you have suffered while serving in the armed forces, including the army, the navy and the RAF.

This also applies to reservists, and it covers accidents that occurred overseas during any part of your military service.

What Counts as a Military Injury?

A military injury is can cover more things than you realise. They can result from training exercises, from falls, from conditions such as frostbite or hypothermia or collisions involving military vehicles.

Here are some aspects of military service where injuries occur.

  • You could have received an injury from being in the gym, on an assault course or during a training exercise.
  • It could be an injury involving lifting or loading, or something happening in a workshop.
  • Injuries can occur in parachuting, diving, climbing, abseiling and skiing.
  • They can occur in armed forces accommodation, at social functions or because of poor weather conditions.

Equipment and Road Injuries

Injuries in the armed forces can result from people handling equipment such as weapons and ammunition, vehicles and specialist kit.

Some sophisticated equipment requires careful, expert handling, which means the personnel involved should have the right training to do so.

There are also occasions where equipment is not fit for purpose, or is lacking, leading to injury.

Road accidents involving military vehicles are responsible for a large proportion of personal injuries in the armed forces.

This can happen while on or off duty, and it can have an impact on future careers, as physical fitness is central to military service.

What Does an Injury Claim Against the Army Involve?

Making a claim against the Ministry of Defence, following an injury during an individual’s service, is a legal process.

It can involve injury, illness or even death, and it must have been caused by being in service.

The AFCS (Armed Forces Compensation Claim) scheme is a no-fault scheme, which means that the Ministry of Defence makes payment without admitting fault. It is separate from any other personal accident cover.

Where the claim involves service-related death, the payment is in the form of benefits to an eligible partner and children.

There is a seven year limit on making a claim, from the time of the injury occurring. Where there is a late-onset illness, you can make a claim within three years of seeking medical advice.

Benefits arising from a successful claim come as a lump sum or guaranteed income payment (GIP).

Normally, with the guaranteed income, this is in addition to the lump sum awarded, and applies to people with more serious injuries or illnesses.

Advice and Support for Armed Forces Injury Claims

We can assist you with your injury claim, if you are eligible. Please contact us today for advice and support. Call 0800 002 9577, or complete our online contact form.

care home

How Care Cuts Are Affecting Older People in the UK

Posted on by Mark Reynolds

An inquiry has found that government care cuts are putting the elderly’s health and wellbeing at risk.

The 13 month inquiry was carried out by the global campaign group Human Rights Watch and found that older people are facing physical, financial and psychological hardship because of cuts.

Since the government cuts, many elderly people are now finding that they are not receiving the help they need to live independent and dignified lives.

Many elderly people rely on social care services to help them to continue to live independently in the community. But since 2010, when the government cut the funding for councils by almost 50%, there has been a 140% increase in adult social care complaints.

Many elderly people are now receiving incorrect care assessments, which can have devastating effects on their health, wellbeing and independence.

Planning for Home Care Fees

In a country with an ageing population and rising care costs, planning and preparing for care later in life is becoming more important than ever.

The amount of financial support that you can claim towards funding care costs is dependent on the value of your capital assets.

If your capital assets exceed the maximum threshold, which currently stands at £23,320, then you will be required to fund the full cost of your care yourself.

Working out how much you would be required to pay towards your care costs, and where you will find the money, can be stressful and confusing.

At Mark Reynolds Solicitors we offer a care home fee planning and advice service to help you prepare for the future.

Our specialist solicitors can help you and your family to understand what options are available to fund your care and help you to put plans in place, giving you peace of mind that you will be looked after in the future.

For more information about our care home fee planning service, or to book a free consultation, please get in touch by giving us a call on 0800 002 9577.

lasting power of attorney

Gifting Rules Under Lasting Power of Attorney

Posted on by Mark Reynolds

When acting as a lasting power of attorney, special care should be taken when giving gifts on behalf of the donor to avoid legal and financial consequences.

It is an attorney’s responsibility to ensure that they are acting in their donor’s best interest and using their estate as they would have wished for it to be used.

One of the many financial decisions that attorneys must make is when it is appropriate for the donor to send gifts to those close to them.  There are many rules and restrictions to gifting under lasting power of attorney. These rules are in place to protect individuals and their estates, and attorneys should take care to act within these laws.

It’s important to note that it is only property and finance attorneys that have the power to gift, health and welfare attorneys do not have this power.

Who Can Gifts Be Made To?

To protect the donor, the rules for who gifts can be made for are restricted to the following:

  • Family and friends on occasions where gifts are customarily given, this could include birthdays, Christmas, weddings, anniversaries and christenings.
  • Charities that the person has previously donated to or had a connection with.

The Terms of the Gift

The gift given must be of a reasonable size and reflect the value that the person usually spends on such occasions and the size of their estate.

If an attorney believes it to be appropriate and within the donor’s best interests to give a large gift, then this must be authorised by the Court of Protection and the attorney will be required to put forward a case to justify the large gift.

If in doubt, it’s best to consult a specialist solicitor before gifting under lasting power of attorney to avoid legal consequences.

For more information about lasting power of attorney or gifting, don’t hesitate to get in touch with our team of specialist solicitors here at Mark Reynolds Solicitors by giving us a call on 01942 260 228.