Frances Grace Canning joins Gilbert Stephens

The partners are pleased to announce that Frances Grace Canning's practice merged with Gilbert Stephens on 3rd March 2008. Frances is a well known local sole practitioner who has been providing high quality personal legal services to her clients for almost 15 years. She will be working as a consultant based in our Exeter office (01392 424242). Frances is looking forward to continuing to personally act for her existing clients and also to have the opportunity to introduce them to her new colleagues who will be able to offer a comprehensive range of additional legal services and investment advice.

Sorry Darling, but Tax planning Wills are not dead!

Should anyone suggest to you that the announcement made by the Chancellor (Alistair Darling) on 9 October 2007 to double the inheritance tax threshold for couples means that tax planning Wills are a thing of the past, then think about the following situations:

A was married to B who died. All B's assets passed to A. A is now married to C. A and C were going to ask a solicitor to draw up discretionary wills, but then read in the paper that they didn't need to because of the 2007 Pre-Budget Report (PBR). Some time after 2010 (when the nil rate band had risen to £350,000) C died leaving everything to A and no Inheritance tax (IHT) was payable. A then died leaving an estate of £1,050,000. Carrying forward two Nil Rate Bands of £350,000 (A's and C's) £700,000 passed tax free so that A's executors paid IHT of £140,000.00. The family thanked Mr Darling for his kindness, which had saved them about £600 (the cost of tax efficient wills for A and C at 2007 prices).

X was married to Y who died. All Y's assets passed to X. X is now married to Z. X and Y were going to ask a solicitor to draw up discretionary wills, but then read in the paper that they didn't need to because of the changes to the inheritance tax threshold that were in announced in October 2007. Unlike A and C, X and Y thought that they ought to check this was true and contacted their solicitor. Thankfully they were advised that tax planning remained very important and prepared a new pair of Wills for them. Some time after 2010 (when the nil rate band had risen to £350,000) Z died leaving the Nil Rate Band on discretionary trusts and everything else to X and no IHT was payable. X then died leaving an estate of only £700,000 (but having been a beneficiary of Z's Discretionary Will Trust which was worth £350,000). Carrying forward two Nil Rate Bands of £350,000 (X's and Y's) X's executors paid IHT of £ 0.00. By seeking the appropriate advice the family saved £140,000.00!

This is one simple example to show that expert advice remains vital to make the most of tax planning oportunities for married couples and Registered Civil Partners.

The Budget of March 2006 created the possibility that extra IHT will have to be paid if anyone the age 25 inherits under a Will. This has made it essential that any will drawn up before March 2006 is reviewed by an expert, in order to ensure that this additional tax can be avoided.

Gilbert Stephens has four Practitioners who advise on Wills who are members of the Society of Trust and Estate Practitioners (STEP), which is the professional body for Trust and Estate Practitioners (See www.step.org ). By using a STEP member, clients can be sure of getting experienced, qualified and high quality advice about all aspects of tax and estate planning.

Please contact one of our Will specialists for further advice.

Home Information Packs

Since 14th December 2007 every home put on the market, regardless of size, requires a Home Information Pack.  We are able to offer a number of solutions to help you with this requirement.  Please ask your local office for details. A HIP is a collection of legal documents relating to the property which is being sold. While it is vital that it is prepared in a professional manner, the need to provide one should not discourage you from placing your property on the market, provided you ensure that your HIP is prepared by a reputable supplier. At Gilbert Stephens in Exeter and Ottery St Mary and our Mossop & Whitham office in Sidmouth we have staff with the expertise to provide cost-effective solutions both for the production of the HIP and for the legal work that is required for the sale or purchase of any residential property.

Control of Asbestos

A new duty to manage the risks posed by asbestos in non-domestic premises came into force on 21 May 2004 under the Control of Asbestos at Work Regulations 2002. These have since been replaced by the Control of Asbestos at Work Regulations 2006 (“the Regulations”), which came into effect on 13 November 2006.

Tax Trap in Wills Providing For Young People 

Many people feel that receiving a large inheritance at eighteen years of age is not in the best interest of the recipient. As a result they write their Wills so that all beneficiaries have to reach 21 or 25 before inheriting. New Inheritance Tax rules will penalise many of those who have to wait beyond their 18th birthday to receive an inheritance.

This may mean that it will be desirable to change your own Will to ensure that your children, grandchildren, or nephews and nieces receive in full what you intended that they should have. The simple advice is: “Give them funds at 18 or extra tax may have to be paid”. In some cases the impact of the changes in tax law may have limited impact, so that you prefer to leave things as they are, but this needs to be properly reviewed.

Gilbert Stephens has four Practitioners who advise on Wills who are members of the Society of Trust and Estate Practitioners (STEP), which is the professional body for Trust and Estate Practitioners (See www.step.org ). By using a STEP member, clients can be sure of getting experienced, qualified and high quality advice about all aspects of tax and estate planning.

Please contact one of our Will specialists for further advice.

Collaborative Law - a new approach in Family Law

Gilbert Stephens has always been committed to helping clients resolve problems arising from separation or divorce using ways which avoid the need to become involved in what can often be long and expensive Court proceedings, unless there is no alternative.

We are now able to offer clients the opportunity to use a new approach known as Collaborative Law which is being offered by some specially trained family lawyers. In this collaborative process the family lawyers and their clients agree in writing to reach settlement without court involvement. They agree to work together to resolve children and financial issues arising out of the separation. In addition, they may enlist the help of other experts, such as child specialists, as part of the team. Utilising their skills in client representation, negotiation and problem-solving, collaborative family lawyers help their clients to reach an agreement which each of them thinks is fair and provides a positive way forward for all concerned.

For more information and to arrange a free initial interview please contact Terry Bastyan terrybastyan@gilbertstephens.co.uk