Category Archives: Legal Matters

Writing a business LPA…


The use of the Lasting Power of Attorney (LPA) – where an ‘attorney’ is appointed to make certain decisions on your behalf should you reach the point where you are unable to make them yourself – has increased significantly in recent years.

However, it would be a mistake to view LPAs as purely a tool for individual use. A business or commercial LPA can prove just as useful if you happen to own your own business.

What would happen if you were injured or fell seriously ill? It may be that you have company documents such as a partnership deed or shareholders agreement to say who would take over the running of the company but who makes shareholder decisions i.e. who would be in charge of those strategic decisions on which the future of the business will depend?

While there may be some form of informal understanding among you and your senior team of who would take on that responsibility that may not be enough if you are also a shareholder in a business. Without some form of legal structure in place, there may be issues with them accessing the business’s bank accounts, arranging contracts with suppliers, even paying the salaries of the existing staff. It may not take long for the company to end up in serious difficulties.

Writing a business LPA is an excellent way to tackle this, ensuring that an appointed attorney is in place to step in and maintain continuity should you no longer be able to fill that role.

Picking a suitable attorney for a business LPA is not altogether different to selecting one for a personal LPA. You need to find someone who you trust, who is reliable and who has a similar outlook and attitude towards the business as you. It’s vital that you talk this responsibility through with them in advance though, so they are well aware of what will be expected of them should you fall ill or be involved in an accident.

As with a personal LPA, you can appoint more than one attorney, and specify that they act together in certain areas but separately in others.

Successful business owners pride themselves on being prepared for all situations, and sadly ill health is an important one to consider. Without making it clear legally that one of your team can step in and make important business decisions on your behalf, if you are no longer able to, it can put the very future of the firm in danger. Having a business LPA in place is vital.

To find out more about LPAs, contact legalmatters. Call us on 01243 216900 or email us at info@legalmatters.co.uk to discuss your particular situation.

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Celebrities we loved but lost in 2017…

So why was 2017 such a good year for the Grim Reaper when it comes to celebrities?

Experts have come up with a few reasons. Thanks to the proliferation of media over the past few decades, there are more stars around these days and more claiming fame faster.

Social media plays an important role in this process. As well as creating new stars, it also means that we hear about celebrity deaths far faster than in the past, as well as providing everyone with a platform to publicly share their grief. In fact, in the early part of the 20th Century, before television, the only celebrities were film stars.

We said goodbye to some of the best:

  • The legendary Bruce Forsyth
  • Socialite and television presenter Tara Palmer-Tomkinson
  • We lost a Bond; Roger Moore
  • Rock ‘n’ roll legend Chuck Berry
  • Star musician of the band Linkin Park, Chester Bennington
  • Michael Bond, writer of the Paddington Bear books
  • Peter Sallis, the voice of Wallace in the Oscar-winning animated hit Wallace and Gromit and “Cleggy”

The question is, did these celebrities make plans for their assets to go where they wanted them to?

2017 was the year that reminded us that death is inevitable, regardless of how rich and famous we are. It also reminded us of the importance of writing a will.

Contact us at legalmatters to get your estate in order – even if it’s not of A-list proportions it’s still important! Call us on 01243 216900 or email us at info@legalmatters.co.uk.

Will water cremation become a reality in the UK?

Water cremation is already offered as a service in several US states, but has yet to receive approval in the UK. Will it become an alternative to traditional cremation in the UK?

Before you consider it as an option, you need to know what it involves…

The Water Cremation method involves a body being placed into a metal chamber, where a process called alkaline hydrolysis breaks the body down into liquid and ash.

Many proponents of water cremation claim that the process is environmentally friendly, with there being no human DNA in the waste water produced. The process is supposedly kinder to the environment than traditional cremation. Companies looking to offer the service here in the UK claim that the process produces less than two thirds of the greenhouse gas emissions and requires just a seventh of the energy used during the cremation.

The process used for Water Cremation also allows for bodily implants to be completely separated along with dental amalgam. This means that mercury (found in tooth fillings) can be removed safely. If the Water Cremation service was offered in the UK, and it proved popular, this would help to reduce the UKs airborne mercury emissions. It is thought that currently approximately 16 percent of such omissions originate from cremation.

Although this sounds positive, there have been some objections. Sandwell Council have been awarded planning permission to enable them to offer this service (through a partner company). Severn Trent Water have however refused the Council a trade effluent permit, which has stalled the process.

Severn Trent Water say they are currently looking to the government for guidance. Water UK has also stated they are “not convinced”, with a spokesperson telling The Sunday Times: “It is the liquefied remains of the dead going into the water system. We don’t think the public will like the idea.”

The Council’s reasoning for wanting to offer the service is that they would like to provide more choice for the public, giving them greater control over what happens to them after they die.

While water cremation may not currently be an option, it could be a reality in the UK in the very near future. The popularity of any future water cremation service remains to be seen.

Whilst you may not want to think about it, it’s important to plan for your future. Whatever your wishes, it’s important to consolidate them in one place.

Having worked in estate planning for many years, legalmatters are experts in the industry. As well as advising you on providing for your loved ones, our professional team can ease any worries you may have. Speak to legalmatters today to make sure that your final wishes are carried out. Call us on 01243 216900 or email us at info@legalmatters.co.uk.

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Grandparents and gifting options…

Many grandparents are intending to gift their grandchildren financially, with recent research from Saga suggesting that more than £37bn has passed from grandparents to their grandchildren.

Part of this is down to the fact that older people are worried about their grandchildren’s future. The increase in cost of houses, cars and the day to day necessities mean they’re likely to suffer financially and be much worse off than those of generations gone by.

So how could you go about helping out your younger relatives?

Skipping a generation

According to the research, around 14% of parents are skipping a generation and are instead looking to leave assets to their grandchildren.

Making use of a gift allowance

In certain scenarios, grandparents are choosing to give money without causing a tax event such as a £3,000 annual gift allowance. This can cover financial gifts which can be passed over each year, free of Inheritance Tax. Additionally, grandparents can also give away up to £250 to any number of people each year.

Putting it in a trust

With a discretionary trust, it is up to the trustees to determine how and when any potential beneficiaries may be able to access the cash. You can appoint yourself as the trustee, so that you have final say over where the money goes, or you can go for an independent trustee. What’s more, the money within the trust is classed as separate from your estate, so it’s free of Inheritance Tax.

There are also bare trusts, which mean the grandchildren would be completely entitled to whatever is in the trust once they reach 18. Unlike the discretionary trust, the beneficiaries are fixed, so once the trust is declared it is not possible to add (or remove) beneficiaries.

It’s important that you consider where and to whom you want your assets to go to – a comprehensive will is the only place where you can formally set this out.

Don’t keep putting it off. Speak to legalmatters today to make sure that your final wishes are carried out. Call us on 01243 216900 or email us at info@legalmatters.co.uk

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Importance of business succession planning…

You’ve spent years building up your business, but have you given any thought to what will happen when you die?

Do you have an exit plan, and if not, how do you go about building one?

First of all you must decide what you want to happen.

Do you want it to be sold? If that’s your goal then how do you make it as healthy and profitable as possible to get the best price when the time comes to sell?

If you have children, do you want them to take over your business, are they able to and do they want to? If you have more than one child, do you want all your children involved; should they own it and someone else manage it?

If you are handing the business on, then you still want it to be in good shape but you also need to think about who will take it over, what training they might need and whether you need to mentor them.

It’s obviously very important to have a Will in place which will detail how you want the business to be passed on and to protect it from inheritance tax. Your business assets may qualify for relief from inheritance tax or there may be things that you can do to reduce the impact of the tax.

For instance, did you know that business relief for inheritance tax reduces the value of a business or its assets for inheritance tax purposes when you die?

The proceeds could one day become taxable for your beneficiaries, so it may well be wise to establish a Business Property Relief Trust which will ensure that the relief is protected.

If you’d rather your family receive money than the responsibility of taking over your company, then have you considered a share purchase agreement? This allows surviving business owners to buy your shares when you die.

To find out more about the different approaches to ensuring your business is protected for your beneficiaries, contact legalmatters. Call us on 01243 216900 or email us at info@legalmatters.co.uk to discuss your particular situation.

Help! I’ve been asked to be an Attorney!

The number of people making use of Lasting Power of Attorney (LPA) agreements has increased enormously in recent years. In fact, according to data from a Freedom of Information request, the number of LPAs has increased threefold since 2010.

This is undoubtedly a good thing; LPAs allow you (the “donor”) to nominate an “attorney” – perhaps a relative, a friend, a professional (for example a solicitor), your husband/wife/partner – to step in and make decisions on your behalf should you no longer be able to do so.

According to the Alzheimer’s Society there are currently 850,000 people in the UK living with dementia, and that’s expected to pass the million mark by 2025. As a result, an LPA is an excellent piece of planning, ensuring that someone you trust will be making decisions in your best interest should the need arise.

But what about the people that are asked to be an attorney? What does it mean for them?

  • It’s a significant responsibility, so generally people are advised to select good friends or close relatives to be their attorney.
  • As there may be a lot of administration involved – such as sorting out a care home, paying the care fees and keeping up to date records of the donor’s affairs – they need to be reliable.
  • At all times, the attorney will be expected to act in the best interests of the donor, acting in accordance with the terms of the LPA.
  • What’s more, the attorney cannot ask anyone else to take over their duties unless the donor has authorised them to do so.
  • All of this will be unpaid, although the attorney will be able to claim reasonable expenses.

For anyone who’s been asked to be an attorney but believes that it may be too much for them, it’s important to speak to the donor in advance of the LPA being registered, when it would be too late.

LPAs can give donors peace of mind that someone they trust is making decisions on their behalf. However, selecting the right attorney may be more complicated than it first appears, and it’s vital that attorneys are clear on their responsibilities before taking on the role.

For help preparing an LPA – or to discuss the responsibilities of an attorney – call legalmatters on 01243 216900 or email us at info@legalmatters.co.uk.

The winter of our discontent…

Ah, winter. The most wonderful time of the year! Unfortunately for those professions who deal with death and its aftermath, it is also the busiest time of the year.

Last year, the Office of National Statistics reported 525,000 deaths in England and Wales. Over half a million. Statistically, the winter months see an average of 27% more deaths than the non-winter months, with the majority of deaths occurring among those over 75 years old.

The fact that more people die during the chilliest season probably won’t come as much of a surprise, but the reasons behind it might.

It would be an easy assumption to make that this is down to the Great British Weather, however research has shown that it is not as simple as to blame a drop in the thermometer readings. So let’s consider what are the likely suspects for this increase? Why is it that an individual is more likely to be “no more” from December to March? To cease to be; to be bereft of life, to rest in peace; to be an ex-parrot. Too many sausage rolls? Drinking nothing but fortified wine? Can’t face yet another repeat of Only Fools and Horses Christmas Special? All potentially contributory factors but none of which are cause alone.

In fact, globally, the majority of countries suffer from “excess winter deaths” compared to their more temperate counterparts.

Whereas it would be a not unreasonable assumption to think that when the weather is cold outside we’re going to be much more likely to get ill, research has shown that is not actually the case. Indeed, there is no overall correlation between a cold winter and a rise in excess winter mortality.

“If we look at Scandinavian countries, which generally have much, much colder winters than we do, the number of excess deaths in those countries is much lower,” says Claudia Wells, head of mortality analysis at the Office for National Statistics. Indeed, the excess deaths in warmer countries such as Portugal and Spain are much higher. Yet both the Scandinavians and Southern Europeans have similar overall life expectancies.

Neither are winter deaths linked to socio-economic status. Whereas when you look at the year round average of mortality rates, there is a clear correlation between the deprivation in an area and the number of deaths, but the seasons alone do not have a monopoly on these statistics. Geographical evidence analysed by the BBC showed that in 2012, the relatively affluent county of West Sussex saw 48.3% more deaths occur during winter than the rest of the year. By contrast, there were no excess winter deaths that year in Ceredigion where one in five people are in fuel poverty.

While they say more research is needed to confirm the true cause, the researchers suggest a combination of medical care and will power could be at play.

Many studies have attempted to explain the phenomenon, with contributory factors varying from additional emotional stress, changes in physical environment (such as those travelling away from home to stay with friends or relatives) and changes in diet and alcohol intake to be to blame.

In a study published by the Journal of the American Heart Association, researchers found that many patients delay medical care while the Christmas holidays are underway, and some may even hold off death to experience the festivities one last time. As a result, this could contribute to a delay in seeking treatment and exacerbating an illness.

So, whilst it would be foolish to say that the cold weather doesn’t play a part, it is perhaps not as deadly as some might expect. However, in general, it does remain true that if you live in the North East of England you have a higher risk of dying than if you live in London, where the death rate is the lowest in the UK (must be something in all those jellied eels and chim chiminey-ing).

It’s never too early to plan for the future and prepare your Will. Speak to a member of the team at legalmatters on 01243 216900 or email us at info@legalmatters.co.uk.

Dog days are over…

What happens to your pets on your death

The UK is famously a nation of dog lovers. If you were to head out to any of our parks, woodlands or beaches on a crisp autumn afternoon you would encounter more canine friends than you could shake a stick at (which they would love). With over 8.5 million (just over 24%) of households owning a veritable smorgasbord of breeds, our four-legged friends are as much a part of the family as our own flesh and blood.

But what happens to our furry babies when we die? Rather callously, the Administration of Estates Act 1925 defines domestic animals as ‘personal chattels’ and can be gifted in your Will in the same manner as a toaster, or the family grandfather clock. In the eyes of the law, your pet may be considered as tangible personal property but as a living, breathing and much-loved addition to your family it is important to give proper consideration when setting out what happens to them. So what should you consider?

Who gets Rex?

Whilst many family members would be happy to accommodate your pooch for a weekend, asking them to take full ownership may well be a different story. Ensure that you speak with potential friends or family members to be certain that they are happy with having your pet(s) on a permanent basis.

As with any gifts in Wills, it is always helpful to consider a plan B should you first choice no longer be in a position to take on the responsibility of your pet. A substitute beneficiary can be drafted to step in. Alternatively, charities such as the RSPCA’s Home for Life and The Cinnamon Trust run rehoming schemes and provide long term care for pets whose owners have died, if there are no other individuals who you are able to draft in.

What about costs of care?

Maintaining an animal can be an expensive business. Food, insurance and general health costs (flea/worming treatment/annual vaccinations) all add up. Leaving an additional cash legacy to the beneficiary tasked with taking on your pets in a great way of ensuring that your pet is looked after without any financial detriment to the beneficiary. In addition, it may be more of an incentive for the individual to agree to having your pet if they do not have any financial pressure to meet bills from their own pocket.

How to put this into practice

The correct wording of a legacy (whether canine or otherwise) is essential to ensure that a gift is properly dealt with. It is ALWAYS advisable to consult with a solicitor to ensure you wishes are adequately put in place. The proper, legal, drafting is necessary as any incorrect provision may fail. Your pet cannot individually receive a legacy (as they cannot provide a legal receipt) and as such any clause stating eg “£5,000 to Rover” just won’t work.

Legalmatters is always happy to discuss your needs for your dogs (or cats, or indeed any other animal) and help get the correct provisions in place.  Whether your best friends are diamonds or dogs, we can help you with your arrangements by drafting the necessary claws (never one to pass up the op-paw-tunity for a pun).

Spoiling Legacies For Celebrity Children

Father of 4, Gordon Ramsay, has joined a growing list of celebrities who have decided not to leave their inheritance to their children. The celebrity chef, perhaps as well known for his colourful language as his culinary genius, believes in instilling a strong work ethic in them instead.

He has homes in London, Cornwall and LA and an impressive income – he is in 26th place on the Forbes rich list, with an income for the last year of £46 million. Despite this, he shares the view with many that to leave his offspring a fortune would be to spoil them.

He and his wife Tana have agreed they will give their children the 25% deposit they will need for a flat – but that’s it.

The common theme among the people taking this stance is that they want their children to grow up hard-working and fulfilled. They believe that handing on large sums of money changes people for the worse.

There are many who feel that their money is better spent on charitable works. In 2010, Bill and Melinda Gates and Warren Buffet set up the Giving Pledge. They encouraged 40 of America’s wealthiest people to join them in committing to give more than half of their wealth away, either while they are living or through their Will.

In an interview on ITV’s This Morning, Bill Gates summed up his attitude towards inheritance: “It’s not a favour to kids for them to have huge sums of wealth. It distorts anything they might do creating their own path.”

Simon Cowell has also said he plans to leave his money to charity. Whether he has changed his mind since the birth of his son, Eric, remains to be seen.

Sting on the other hand has said he intends to spend his wealth while he’s still alive. He, along with Nigella Lawson and Lenny Henry have echoed similar concerns as Bill Gates about over-privileging their children.

Back in 1992, three female inheritors set up the Inheritance Project. They wanted to talk about how inheriting wealth can be a negative thing and the effects it had on them. They interviewed 200 people in a similar position to them. They found that it was common for people who had inherited large sums of money to be trapped by their lack of needing to work and that many of them found it difficult to sustain relationships and had problems with addictions.

Obviously, all these examples involve very large sums of money and the people in question are not leaving their children penniless. But regardless of the size of your estate, it is worth putting some thought into what you leave to who and ensuring that it’s drawn up correctly.

For help on any aspect of preparing your Will, please call legalmatters on 01243 216900 or email us at info@legalmatters.co.uk.

Peace Of Mind Before Your Holiday

Planning your Will may be the last thing on your mind as you’re packing your shorts and sun cream, but accidents and injuries happen when we least expect them. Of course, the chances of dying or sustaining a severe injury on holiday are slim, but if you have a Will in place it’s one less thing to worry about as you head off for your break.

The risks vary depending on where you’re travelling to. According to the latest information from the Foreign and Commonwealth Office (FCO) there were just over 3,600 reported deaths of British nationals abroad in the year 2014/2015. Spain, Thailand and France recorded the highest number of fatalities. The FCO also recorded over 3,300 reported hospitalisations. In both cases, the numbers reflect occasions where the foreign office gave assistance, so the totals for both sets are likely to be higher.

If you’re travelling abroad, it’s far less likely that you will be struck down by an infectious disease. The greatest risk for most travellers according to the World Health Organisation is road traffic accidents. Even more so if you’re travelling to a lower income country, where typically road laws are a little more relaxed. Add to that, that as a driver you may be driving a vehicle you are unused to, the steering wheel may be in a different place – you may be adapting to driving on the right-hand side of the road and navigating signs in a different language.

The other high risks are associated with violence and water activities. According to the Swimming Teachers’ Association, a Briton is 5.5 times more likely to drown abroad than in the UK. In the decade up to 2010, 784 Britons drowned abroad, the majority of whom were adults.

Once you have a Will in place, make sure it’s stored in a way that’s easy for your executor to find. The company that writes your Will may be able to do this for you.

Holidays are a time to relax and spend time with the people you love. Setting up things such as Wills and travel insurance means you can sit back and enjoy yourself in the knowledge that if something does go wrong, your family will be taken care of.

For help on any aspect of preparing and writing a Will, please call legalmatters on 01243 216900 or email us at info@legalmatters.co.uk.