PROTECTING THE FAMILY HOME

Much has been written recently about funding long term care. Proposals include voluntary or compulsory insurance, or one off payments after death (and even before). Much has also been written about the family home being 'seized' to cover the cost of Care Home fees although this is not the case. It is important before taking action to understand how funding is decided. Local Authorities are bound by the Charging for Residential Accomodation Guidelines (CRAG). The CRAG sets out what income and capital is taken into account in deciding any local authority contribution. IMPORTANTLY CRAG also says what is not taken into account and the exceptions can be used for your benefit. It is likely that you will have to convert your assets into one of the exceptions. You will need to take action to protect your assets before care is needed otherwise the authority can treat the asset as still belonging to you. Many of our clients are brick rich, that is they own their home but have very little other in the way of savings. Giving the property to another � such as children � is one way to protect the asset but there is much to be said against outright gifts. Another way is to set up a family settlement. Avoid Care Home fees and Capital Gains Tax

We have produced a booklet �Gifting the Family Home�. This explains your options and the benefits and drawbacks. If you are thinking of ways to preserve the family home then please call at the office or telephone and ask us to send you a copy. If you would like to discuss the possibilities further, telephone and make an appointment to talk to Graham Dean.

WILLS

Is your Will up to date? Perhaps you have not made a Will. People often do not realise that you can express any wishes you have about funeral arrangements and appoint guardians for minor children. If you are married, have children and do not have a Will then the surviving spouse or civil partnermight not get all your estate (depending on the value). Avoid this by making a Will.

This is particularly important if you have been married before.

Your Will is probably the most important document you sign. It is only likely to be questioned when you are dead and, of course, you are not going to be around to say what you meant. If you have a Will does it take into account all your wishes? We will discuss with you all the sorts of things that you should consider. Very often clients say �I never thought of that�. After discussing your wishes we send a draft with tailor made notes explaining the clauses and noting what you want included and what you do not. These will be �your answers� to questions that might be asked when you are dead. Don�t leave matters to chance. Make an appointment to see us now.

INHERITANCE TAX

Contrary to common belief and incorrect press reports in 2007, the Chancellor did not double the threshold (upper limit of the nil rate band) for Inheritance Tax (IHT). This is still �325,000. On the second death of a married couple or civil partners the survivor can use the unused part of the nil rate band of the first to die. This means that if the first to die made no relevant life time gifts and left the whole of the estate to the survivor then the survivor�s estate pays no IHT for the first �650,000. This is not the case if the first to die made certain lifetime gifts or legacies before leaving the residue to the survivor.

There is still scope for tax planning in Wills. This may be particularly important if you have been married before especially if there are children by more than one marriage. Depending on the rates at which the value of assets increase compared with the increase in the threshold there could still be a tax disadvantage. The Revenue has set out what information they require about the estate of the first to die when dealing with the survivor�s estate. This is complex. There are still good reasons for considering the form of Nil-Rate Band Trust Wills that we have prepared for a number of years.

There are also a number of exemptions that can be used during your lifetime � gifts on marriage, the annual exemption and regular payments out of income. There are special provisions if you own a business. Business Relief of 100% may be available. This also applies to investments in shares on the Alternative Investment Market (AIM shares) under certain conditions. We can advise you on all of these.

Remember that when IHT is payable then after deducting exemptions and reliefs the taxman takes 40% of what is left. It is important therefore that you make the most of any exemptions and reliefs available to ensure that your estate goes where you want it to.

MOVING HOME?

Not much loved and not much use but we still have Home Information Packs (HIPs). If you are planning to sell your property you will need one. We can advise you on these and prepare your pack. Make us your first port of call.

HIPs are also important if you are buying. They contain information that is important to you and which you will be deemed to have knowledge of. A recent survey indicates that less than 1% of buyers ask to see the HIP. Make sure you ask to see it. If we act for you we will check it and explain it to you.

BUSINESS PREMISES

The HIP for residential properties includes an energy efficiency certificate. If you are selling or letting business premises you need an Energy Performance Certificate . There are a few exceptions. The cost of these varies considerably but we can advise you of the most cost effective source. Business premises are subject to a wide range of legislation that you must comply with - Health & Safety, Fire Risk Assesments and Asbestos reports for example. We can advise you on what actions you need to take.

EMPLOYMENT

Employment legislation is one of the fastest growing areas of law. Failure to comply with the law can be very expensive for employers. If you are an employee and you have a grievance or your employer has started disciplinary procedures you will benefit from professional advice on what your rights are and what you have to do. If you are an employer you must ensure that you have in place terms and conditions of employment and certain Policies. We can help whether you are an employer or an employee.