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What is Probate Law?

Probate, or a Grant of Probate, is a document issued by the Court on production of the deceased person's original Will and an Oath sworn by the executors appointed by the Will. If there is no will, the equivalent document is called "Letters of Administration".

The Grant of Probate is the document which allows the executors access to deal with the assets of the deceased’s estate.  This includes enabling them to collect in monies from bank accounts, make claims on life insurance policies and transfer or sell properties belonging to a deceased person.

IS PROBATE NECESSARY?

If the deceased owned a house or land then a grant of probate is always required.   In other cases, most financial institutions want to see the grant of probate if the value of the asset is over £15,000; although each institution sets their own limit and some are lower than £15,000.

It is possible for an executor to deal with the application for grant of probate in person themselves without the assistance of a solicitor. However, it can be time consuming and sometimes confusing, with a lot of paperwork to deal with at a time when you may not feel up to it.    For this reason many executors choose to instruct a solicitor to act on their behalf.  

At FDC Law we work together with our executor clients in a completely flexible manner.  We initially arrange a without obligation meeting to discuss the extent of the deceased person’s estate.  We discuss whether or not the executors require any assistance and if so the extent of the assistance they require. Some clients ask us just to obtain the Grant of Probate for them, whilst others ask us to take on the whole administration process which would include valuing the assets, obtaining Grant of Probate, paying any legacies and liabilities, preparing a full estate account for the executors' approval and then carrying out the distribution of the estate based upon the terms of the Will with the executors authority.

To arrange a no obligation meeting, please contact a member of the Private Client Team on 01761 409423/409450 (Midsomer Norton) or 01373 475610 (Frome)  0117 916 1088 (Keynsham)

Lexcel accreditation ensures quality of service

FDC Law Solicitors are very pleased to confirm that they have passed their Lexcel audit for the 5th year running.    Senior Partner James Hollis says "We are delighted with the quality of service we can continue to provide our clients. Our Offices at Midsomer Norton, Frome and Keynsham all hold the Lexcel Quality Standard.

Lexcel means that all of our clients receive a comprehensive cost estimate at the start of their transaction and costs updates at least every six months thereby ensuring that no unexpected bills are received. We also commit to returning telephone calls and replying to correspondence in a timely manner so as to ensure that all transactions are progressed quickly and efficiently. This standard of service is only guaranteed by solicitors who hold the Lexcel Quality Standard".

The Law Society says "The Lexcel Practice Management Standard is only awarded to solicitors who meet the highest management and customer care standards and only 7% of firms nationwide have achieved the required standard. Lexcel accredited practices undergo rigorous independent assessment every year to ensure they meet required standards of excellence in areas such as client care, case management and risk management".

Head of Conveyancing and Partner Jonathan Wood says "Lexcel is just one of the awards and quality marks the firm holds. In August 2011 the firm was delighted to be one of the first to be awarded the Conveyancing Quality Mark which ensures all our clients receive the very best service possible, particularly as the Quality Mark was only introduced in January 2011".

The Law Society says "All accredited firms should be congratulated for their achievement. The application process is thorough and all those firms who achieve the Conveyancing Quality Mark Status have shown that they have what it takes to achieve and maintain high professional standards as well as delivering excellent customer service".

Senior Partner James Hollis comments "Our staff have worked very hard to achieve these Quality Standards. We pride ourselves on the level of service we provide to our clients.  In the current market with competition from online service providers and supermarkets, these Quality Standards set us apart from the faceless approach of our competitors. We will continue to meet our clients face to face, whenever and wherever they need us.  This is the service that clients of FDC Law enjoy everyday".

Why Should I Write A Will?

Last month, saw National Write A Will week, an event aimed at promoting wills and highlighting the importance of ensuring that when an individual dies, they have a clear will which sets out how they would like their assets to be dealt with.

Statistics show that about 30 million people in Britain still don’t have a will – about 70% of the adult population according to Unbiased.co.uk, a Financial Advisor’s website.

So why is it so important to have a will? 

There are a number of reasons and, perhaps, one of the most obvious, is that at a time when your relatives and dependants are grieving, having a will makes life easier for them.

If an individual dies without a valid will, their assets will be distributed according to the law and not according to the deceased’s wishes. Two high profile cases which highlight this issue are those of Jill Dando and Stig Larsson, the author of The Girl With The Dragon Tattoo. Both died without leaving a will and their estates were therefore inherited by their fathers and not by their partners.  Of course, this may have been their wish but the advantage of a will is that it would have been quite clear what  their wishes had been.

If you are married with children, one might assume that all the deceased’s assets would go to their spouse on death.  However, it is worth noting that, in England and Wales, if the estate is worth more than £250,000 the spouse would only get the first £250,000 and a life interest in half of the remaining estate, which means that they will not be able to dispose of it or spend it but they are entitled to the interest.  The remainder of the estate would go to the children.  However, if the estate is worth less than £250,000 the children would get nothing.

Even more startling is that, if you are not in a civil partnership or married, your partner will not inherit at all under the intestacy rules.   Following a similar theme, if you have separated but not divorced, your ex-partner will inherit the first £250,000 of your estate under the law.  If you do not have children or are single, various family members can take their share of the estate and, if no-one claims it, then the Government takes everything.

Tax planning is the other important issue.  Inheritance Tax is currently 40% but it is known as the “voluntary tax” because, in reality, it is often possible to get out of having to pay it with proper planning.  Anyone who dies with total assets of more than £325,000 could leave their family with a tax liability but if you leave your assets to your spouse or civil partner, no tax is payable.  Also if you want to avoid tax and leave money to your children, legal advice can be sought about setting up a Discretionary Trust.

When the overall costs of making a will are taken into account - relative to the assets that it will deal with - it remains a puzzle as to why more people do not make wills.  November is Will Aid month when more than 1,000 solicitors across the country, including FDC Law, will draft wills in exchange for a charitable donation.  Will Aid is another example of promotions which take place to try and highlight this issue to the wider population.

At a more local level, FDC Law, are continuing to help people understand the issues at hand and, most recently, Darrell Collins, partner with FDC Law, attended a “Goodwill Event” at St. Francis’ Church in Keynsham, where she spoke to an audience about the issues involved in drawing up a will.

If you want to find out more about making a will, please contact any of our offices or submit a request for further information using the “contact us” page on our website

Householders warned about trust fund sales

Doorstep Selling = no!

Local residents are being warned about doorstep callers offering to set up trust accounts to protect family assets against future care costs. One legal services company based in the East of England, has had representatives calling on households in Longwell Green, Warmley and Kingswood selling a scheme aimed at  ensuring the house and other assets are passed on to the children and not used to pay residential care costs if  they become unable to look after themselves in old age. While there is nothing illegal in the services being offered, the costs are high (some clients have been asked for advance payments of over £2000) and, depending on the circumstances, the schemes can have more drawbacks than advantages.

Darrell Collins, a partner at Keynsham solicitors FDC Law and a private client specialist warns that setting up a Trust Fund during someone’s lifetime is not only an expensive and complex option, it also means residents no longer own and have control over their homes. She also explains that tax liabilities can be passed on to the children. “I would never recommend anyone to buy anything as important as this from a person who knocks on your door. You should always go to a solicitor for such specialist advice, ideally a Member of Solicitors for the Elderly (who specialise in advice for elderly clients) and/or a STEP member (Society for Trusts and Estates Practitioners).  While setting up a Trust Fund can cost between £2-3000, there are simpler ways to protect your house against care fees which cost a fraction of that.   A Trust can be set up during the client’s lifetime transferring the family home into a trust to protect it from care fees but this is a more complex option which many of our clients choose to avoid as the cost of setting up such an arrangement, the lack of control over the family home once it is placed into trust, and the ongoing administrative costs often prove prohibitive.”

Another option is to set up a simple trust in the client’s Will. By placing the trust in the client’s Will, the client is free to continue to use the property during their lifetime and will not suffer any negative tax implications during their lifetime or any problems with loss of control of the asset. Rather than costing thousands of pounds to initially set up and run, this option would normally cost less than £300.”  

If you want to find out more about this or arrange an appointment to discuss the options get in touch with FDC Law in Frome, Midsomer Norton or Keynsham.

D.I.Y. Probate – a botched job??

Is DIY always the best way? Is DIY always the cheapest way? It’s a question that is being discussed more and more in the legal sector.

In the past, if an individual needed a will or someone to deal with the estate of a loved one, they would approach a solicitor for assistance. However, now, more than ever, there are other avenues open such as approaching banks, will writers or even retailers (such as the Co-op) etc. Individuals can also try and run an estate themselves.

It is possible to apply for Probate and deal with an estate without seeing a lawyer but, as with all things in life, this approach is not without risks – risks that legal group Solicitors for the Elderly recently highlighted.

Like all things in life, a proper assessment of the risks involved is required before setting out to deal with an estate otherwise mistakes can be made and significant, and unnecessary, costs incurred in the future.

One of the things that the SFE pointed out is that they have noticed an increase in individuals who have initially tried to deal with a probate themselves but then turned to them for advice when they have made a mistake or found the paperwork too tricky.

The SFE highlighted an individual, Mrs. A, whose will had included a tax saving trust but when her husband dealt with the estate, he paid the whole estate to himself. The solicitor who he eventually approached was able to sort out the matter and avoid future complications occurring when Mr. A eventually dies.

They also highlighted the case of a Mr. G. who sold some shares that had made a gain during the administration of his late sister’s estate and had to pay tax. If he had known and had transferred the shares to himself, before selling them, he could have avoided that tax.

Darrell Collins, local SFE member and Partner with FDC Law, says that, "People are not always aware of the complexities and assume that the Probate work will be quite straightforward. It is true that it can be, but it is just as true that sometimes it isn’t. In all but the more straightforward of cases, it is important to seek timely specialist legal advice that can actually save you money and worry.”

If you would like more information on these issues or help with the administration of an estate, please contact us or call our office at Frome 01373 465051, Midsomer Norton 01761 417575 or Keynsham 0117 916 1088.

Midsomer Norton - blooming again

In this day and age when there are reports of constant pressure on town centre retailers from out of town developments and supermarkets, it seems more important than ever to ensure that our town centres are attractive places to shop and spaces to enjoy.

One of FDC Law’s offices is on Midsomer Norton High Street and, recently, we have been pleased to notice - and also help with - the work that has been going on to make the town centre more attractive and which, so far, has been very successful.

There have been a number of initiatives, not least the work to recover and reshape the town’s river bed which required a significant amount of mud being removed and the planting of lots of shrubs, herbs and flowers along the new river course - a big improvement, as we are sure that anyone who has recently visited the town centre would agree.

Work has also taken place with local retailers and the Chamber of Commerce resulting in hanging baskets being placed all along the High Street and a lot of effort has been made to improve the floral displays at The Hollies’ garden display in the centre of town, work that was sponsored by FDC Law.

All of this activity work will hopefully result in an entry for South West in Bloom 2011, for which we wish the town well.