Town & Country Law

In the UK, it is estimated that approximately 70% of people are without a Will, a dangerously high number. Without a Will, you risk leaving important, personal issues regarding your estate to be decided by the law. Unfortunately, the outcomes of this may not be what you would have intended. Therefore, Town & Country Law are committed to providing exceptional Will services for clients nationwide. By making a Will, you can ensure that issues like who will inherit your estate and who will look after your young children are determined by you and not the law. Other decisions a Will can help with include: - Protecting your estate for future generations from, among other things, unnecessary payments of Inheritance Tax - Providing for individuals or organisations who are not automatically provided for by the law, including stepchildren, unmarried partners, friends and charities - Determining who will administer your estate, the Executor - Ensuring that children aren’t disinherited by second marriages Drawing up a last Will and Testament is one of the most responsible commitments someone can make. As such, when creating Wills and Trusts you’ll need a firm who understands how monumental these acts are – you’ll need Town & Country Law. Our professional and friendly team are on hand to discuss and advise you on all Will-related matters. We offer a personal service tailored to your specific needs, and can even meet you at your home at no additional cost. We also specialise in inheritance tax and care fee planning services, too. Simply contact us today to find out more.

Take control of your future healthcare decisions with a Living Will from Town & Country Law. A Living Will, also known as an Advance Decision, allows you to outline your medical wishes in case you become unable to communicate them yourself. A Living Will is known under the Mental Capacity Act 2005 as an Advance Decision. We will refer to them as Living Wills throughout this briefing note, although this is the colloquial term it is the term clients will relate to. Clients may ask about them and whether they should make a Living Will rather than a health and welfare LPA or vice versa. A Living Will allows a person who is aged over 18 and with capacity to refuse medical treatment that might be given at a time in the future when they lack the capacity to refuse the treatment. It means that the treatment specified in the Living Will can not lawfully be given. There are a number of important features that would need to be considered and discussed with a client who is considering instructing us to prepare a Living Will: - The Living Will must specify a specific treatment or circumstances where treatment is refused. Clarity is important as if there is any doubt the Living Will may not be valid. - It can not include a request to refuse basic care, offer of food or drink by both or a request for euthanasia. - It can not demand specific medical treatment, only refuse. No one can insist on a treatment that a healthcare professional may consider clinically unnecessary, futile or inappropriate. - It can not refuse treatment for a mental health disorder if detained under the Mental Health Act 1983. Given the price difference clients may ask why they should do a Lasting Power of Attorney for Health and Welfare and not just a Living Will. There are differences between the two. Some clients will suit just an LPA, some just a Living Will and some both.

The National Will Register, provided by Certainty, is a database of all Wills registered with it in the UK. Secure your legacy and have peace of mind with our Will Registration and Storage services. Will Registration & Storage Services by Town & Country Law The National Will Register, is a will registration and storage service provided by Certainty, is a database of all Wills registered with it in the UK. It is widely used by Will Writers throughout the UK to register Wills to ensure that they are not lost and can be easily located in the future. It does not show your Will, but rather shows that you have a Will, and where it is stored. People often choose to have a Will written, and then in some cases decades can pass without thinking about the Will again; they or their executors may forget where the Will is, or even that there is one. The National Will Register aims to tackle this issue. Certainty charge £30 inclusive of VAT to register your Will, and ensure it will not be lost. Town & Country Law offers this service free to all of our Clients who choose to store their Will, and sometimes other legal documents with us.

In the future you could be in a position where you are unable to make decisions for yourself. Physical or mental incapacity following illness, an accident or old age could leave you in a position where your interests are at risk. Likewise, if you are not able to administer your interests for an extended period of time, they could be at risk, too. But through a Lasting Power of Attorney, you can ensure that your own decisions regarding your wellbeing and estate are always adhered to. At Town & Country Law, our highly experienced lawyers are ready to help clients throughout nationwide to arrange a Lasting Power of Attorney and safeguard their future. We will work closely with you to determine the best course of action for your requirements and desires, listening to you attentively and guiding you through the process. Moreover, we will work tirelessly to ensure that your voice is heard if you are ever unable to communicate yourself. Furthermore, Lasting Powers of Attorney can be established so that they can only be used once mental capacity is lost, thus ensuring that no one makes decisions on your behalf until the time is right. So whether you need a Property and Financial Affairs LPA (Lasting Power of Attorney) or a Health and Welfare LPA, we’re here to help. Simply contact our friendly and approachable team today to benefit from our specialist legal knowledge and wealth of experience. For more information, see our Questions on Powers of Attorney.

We believe that executorships and trusteeships are best kept within your family (or friends). However, when it becomes necessary to obtain a grant of probate on an estate, executors and trustees often seek professional help. We offer probate services to clients who require professional help in administering an estate, which may prove complex. Our probate services cover everything necessary to obtain a grant of probate, administer the estate, call in all money and assets, discharge any necessary debts, and distribute gifts and legacies to your beneficiaries. Because we believe that your estate is best dealt with by your family, friends and loved ones, we never call in your money to us, but rather to a separate bank account that your executors will set up, with our help, ensuring they have control of all monies at all times, given that you have trusted them to make sure your beneficiaries receive the gifts and legacies you have set out. These services may include reserved legal activity which means that some legal work must be undertaken by an authorised person in accordance with the Legal Services Act 2007 and authorised persons must be authorised by an approved regulator who will ensure that the regulatory obligations are met. Such work is referred to as “reserved legal activity” and entitles clients to specific protections. For the benefit of our clients, we have arrangements in place with a firm of solicitors we work very closely with who we will introduce you too. You can read more here.

Any Protective Property Trust and Will Trusts have one thing in common: they start working when you die, and not before. In England, a Will Trust and a Protective Property Trust are both types of trusts that can be established as part of estate planning. While they have distinct purposes, they can work together in certain scenarios to achieve specific goals, such as protecting assets and ensuring that a person’s wishes are carried out after death. All Will Trusts have one thing in common: they start working when you die, and not before. They can be a great tool for ensuring gifts and legacies to people under the age of 18 receive money at the right time, when they are mature enough to receive it; to make sure that your children (or other loved ones) do not miss out on an inheritance through further marriages etcetera (often referred to as sideways disinheritance); and to separate your estate appropriately with a view to planning for the possibility of care fees in the future. We recognise that no two clients are the same, and that they will have different needs. We will advise you as to options and choices that you have in relation to planning your estate, very much dependent upon what makes up your estate, and what your aims are. Of course, with Town & Country Law there is never any obligation on you to do anything, but we think that it’s sensible to look at your options, and make an informed decision.

By putting a Family Probate Trust in place you are ensuring that your loved ones receive your Property in the quickest, most convenient way possible at the appropriate time in the future; whilst protecting you in your lifetime.

Our specialist probate trust was prepared and developed exclusively for us in 2020 by a tax and trust barrister. Our specialist probate trust was prepared and developed exclusively for us in 2020 by a tax and trust barrister. Our Clients come to us because they know that they won’t find it anywhere else. It is unique to Town & Country Law. We invested tens of thousands of pounds in to developing this trust with the specialist barrister in response to the specific needs of our clients. Clients come to us for solutions to their estate planning needs, including maximising tax benefits whilst ensuring assets are protected, and have certainty that those assets will end up where they choose. OUR SPECIALIST PROBATE TRUST PROTECTS YOUR ASSETS AND PUTS YOU IN CONTROL: - No need for your beneficiaries to obtain probate for any assets in the life interest Trust. This could save your beneficiaries thousands of pounds in unnecessary costs and delays. - Beneficiaries inherit quickly and hassle-free. - Children inherit at the right time. - Protects the Trust assets for your beneficiaries in the event of a divorce, bankruptcy or other unexpected events. - Prevents sideways disinheritance from situations caused by second marriages. Don’t forget, a second marriage automatically cancels your Will. - Flexibility to move home or sell your property as you choose. - Beneficiaries only inherit the Trust after all the owners (Settlor’s) of the Trust have deceased. The owner (Settlor) of the Trust always maintains control of their Trust. - Residence Nil-rate Band (RNRB) is preserved, even if you downsize. - There are absolutely no ongoing costs or charges for this Trust. - Following the death of the Settlor’s (owners of the Trust) there are no additional costs to selling the property. - Other companies offer trust products that only accept assets up to the available inheritance tax nil-rate bands – £325,000 for a single person, and £650,000 for a married couple. Our trust can accommodate your assets over this amount, without further tax to pay. These services may include reserved legal activity which means that some legal work must be undertaken by an authorised person in accordance with the Legal Services Act 2007 and authorised persons must be authorised by an approved regulator who will ensure that the regulatory obligations are met. Such work is referred to as “reserved legal activity” and entitles clients to specific protections. For the benefit of our clients, we have arrangements in place with a firm of solicitors we work very closely with who we will introduce you too. You can read more here.

Unmarried couples often fall into unfair difficulty with inheritance tax. That is because they do not benefit from spousal exemption (assets that pass between husband and wife are exempt from inheritance tax) or transferrable residential nil-rate band, or transferrable nil-rate band. The easiest way to consider the problem here is to consider 2 examples: Scenario: Tony and Jane are not married, and have no joint children, but Tony has a child from an earlier relationship. Tony and Jane have Mirror Wills. They leave everything to each other, and once they have both died to Tony’s child. Tony and Jane have assets of £300,000 each in their own individual names. Tony dies. Because they are not married, assets cannot pass to Jane inheritance tax free. Jane and Tony have a nil-rate band of £325,000 each. This means that the first £325,000 of their individual assets can be passed on without inheritance tax. Jane inherits Tony’s assets tax free using his nil-rate band. Jane dies, and Tony’s son inherits everything. However, Jane now has £600,000 in her estate (her and Tony’s estates combined). To calculate inheritance tax, Jane’s nil-rate band can be deducted from the estate value, leaving £275,000. Jane’s estate does not benefit from the remainder of the nil-rate band not used when Tony died (he had assets of £300,000, and a nil-rate band of £325,000, so £25,000 was unused). Accordingly, tax at 40% is payable on £275,000 of the £600,000 left in Jane’s estate – £110,000! Consider the situation if Tony and Jane were married. When Tony died, Jane would not have to have used Tony’s nil-rate band to receive his assets. Transfers between husband and wife are tax free. So, when Tony dies, and then later Jane, Tony’s nil-rate band would have transferred to Jane’s estate. There would be £650,000 in unused nil-rate band, and Tony’s son would inherit the £600,000 tax free. That’s a £110,000 saving for being married! There is an alternative if you’re not going to get married: Solution: If Tony had left his estate to a discretionary nil-rate band trust when he died, his assets would not add to Jane’s assets. Therefore, when Jane died her nil-rate band would be enough to cover her own estate (nil-rate band of £325,000, estate value of £300,000) and no tax would be payable. Jane could have benefitted from the trust assets for the rest of her lifetime.

An Asset Trust can be used for cash and liquid investments. There are different types of Trusts to cover investments depending on your aims. Did you know an Asset Trust can help reduce potential Inheritance Tax Liability (IHT)? An Asset Trust is designed to allow you to reduce your potential UK Inheritance Tax (IHT) liability whilst also providing you with the flexibility to make withdrawals from the trust capital including any growth. After seven years, there would be no further IHT liability on the original gift. If you die within seven years of creating the trust, you may be entitled to tapered relief which would reduce the Inheritance Tax payable. A Bond is used as the investment. This is a single premium, unit linked, whole of life assurance policy. The Collective Investment Bond is a Defaqto ‘5 Star’ rated bond. It offers 1,000 identical policy segments which provide the access to capital. Please contact our offices for more information or to book a free consultation with our in-house, fully qualified and regulated financial planners on 01522282600

A Disabled Person’s Trust is similar to a discretionary trust in that the trustees also have wide powers over how they manage the trust assets and use them. A Disabled Person’s Trust is similar to a discabled discretionary trust in that the trustees also have wide powers over how they manage the trust assets and use them. There is a big difference, however, which is that more advantageous tax rules apply to a disabled person’s trust. A disabled person’s trust must benefit a person who is defined as: - By reason of mental disorder, within the meaning of the Mental Health Act 1983, incapable of administering their own property or managing their own affairs; or - in receipt of Attendance Allowance; or - in receipt of Disability Living Allowance (DLA) by virtue of entitlement to the care component at the higher or middle rate; or, - in receipt of Personal Independence Payment (PIP) at the standard or enhanced rate for ‘daily living activities’. A Disabled Person’s Trust qualifies for reductions in income tax and capital gains tax. They also qualify for exemption from Inheritance tax in some situations. The trust must be one where: - The trust was set up before 8 April 2013 and at least half of the payments from the trust go to the disabled person; or - The trust was set up on or after 8 April 2013 and all payments go to the disabled person, except for up to £3,000 per year (or 3% of the assets, if that’s lower), which can be used for someone else’s benefit -The trust was set up when someone who suffers from a condition that’s expected to make them disabled sets up a trust for themselves. There’s no Inheritance Tax charge: - If the person who set up the trust survives 7 years from the date they set it up - On transfers made out of a trust to a vulnerable beneficiary But it’s worth noting that when the beneficiary dies, any assets held in the trust on their behalf are treated as part of their estate and Inheritance Tax may then be charged. Disabled person’s trusts are exempt from 10-year Inheritance Tax charges. Which trust is best? A Discretionary Trust is often more suitable where the tax implications are not likely to be a major consideration. Discretionary trusts are best where maximum flexibility is required to provide for several people in the family. A disabled person’s trust is useful when tax is likely to be a major issue and there are no other family members who have financial needs.

This brief guide has been produced as a general guide to what a trust is and a trustee powers and duties. It is not a substitute for professional advice. Don’t forget, you can always contact us for help and assistance. A Trust is a legal arrangement whereby assets are transferred by the Settlor (the person or people who set up the Trust) to people called Trustees for the benefit of the people who you want to inherit, called the Beneficiaries. The relationship created by the Trust of these 3 parties gives rise to powers, duties and obligations by the Trustees. Duties are owed to the Settlor (to follow their directions or wishes) and to the Beneficiaries, to ensure that they receive the appropriate assets as and when specified by the Trust Deed. The Trustees manage the Trust Fund for the Beneficiaries, who will receive the property in the Trust in line with the Settlor’s directions in the Trust Deed. Further, if the Settlor has reserved, for example, a right of occupation in a trust property for themselves, the Trustees will be responsible for ensuring that takes place. The Trust Deed specifies the Trustee powers to carry out their duties. Trustees should read the Trust document, understand it and discuss it with other Trustees as relevant. There is a fiduciary relationship between Trustees, Beneficiaries and often the Settlor. A fiduciary relationship in this regard is a special type of legal relationship. In short, Trustees must act in the best interests of the Beneficiaries. When acting for or on behalf of the Trust, a Trustee must have the ‘power’ to do whatever he or she is going to do. That is, either the Trust itself or the law relating to Trusts authorises those actions. Trustee records and accounts Trustees must keep records of decisions and actions to prove they are managing the Trust properly, for example, records of any meetings that they hold, by keeping minutes. Often, where a Trust is set up of a property, and the Settlor is to remain in the property for their lifetime, little needs to be done. An initial set of minutes should be kept when the Trust is set up, noting that the trustees have read and understood their obligations under the Trust Deed, and perhaps deciding that another meeting does not need to be held, unless something significant changes, until the death of the Settlor.