Changes To Intestacy Rules – But Do You Know Where Your Money Would Go?

The law about intestacy (what happens if you die without a will) is changing today, but you may still be surprised to learn who would (and who wouldn’t)  be entitled to inherit if you don’t leave a will.

If you are not married to your partner, he or she  won’t automatically get anything if you die without a will, for instance.

Image courtesy of FrameAngel at FreeDigitalPhotos.net

The key changes to the law are in relation to the estates of married people.

Where someone is married , but childless, at the date of their death, their surviving spouse/civil partner  will inherit everything.  Under the old rules, the surviving spouse would get the first £450,000 with anything over that amount being shared between the spouse, and the deceased spouse’s parents or other blood relatives.

Where someone is married with children, the new rules provide for the surviving spouse / civil partner to receive the first £250,000 of the estate, plus half of anything over that amount. The remaining assets are then shared equally between the children, although the do not get the money until they are 18. In the past, the surviving spouse would get only a life interest (use if income from the money, but no capital) on their half of the money over £250,000.

In both cases, this includes a spouse to whom you are married at the time of your death, even if you were not living together. (They would not inherit once any divorce has been finalised)

The new rules also aim to make it clearer what personal items (“Chattels”) go to the surviving spouse and which have to be sold to form part of the estate to be shared.

If you are not married, then there is a ‘pecking order’ showing who will inherit your estate, with each level only inheriting if you leave no one who is a member of the previous group.

1. Children or their descendants

2. Parents

3. Brothers or sisters or their descendants

4. Half siblings or their descendants

5. Grandparents

6. Uncles and/or aunts or their descendants

7. Half uncles and/or aunts or their descendants

8. Whole estate passes to the crown

For many of us, and particularly for those who live together but are not married, the intestacy rules are very different to the way that we would want our assets to be shared out after we die, so it is very important to make a will to ensure that your assets go to the people who you want to have them.

Research suggests that almost 60% of adults in this country don’t have a will, yet it is one of the most important things you can do to ensure that you loved ones are secure, and that your assets and property is given to the people you want to have it, when you are gone. Like buying life insurance, it need not be expensive or complicated, but can mean  the world to your family when you are gone.

Why not contact one of our friendly, expert advisers to discuss your wishes?

Darrell Collins and Susan Haines are based at our Midsomer Norton Office and also cover Keynsham, James Hollis and Naomi Hill are based at our Frome Office. Call or e-mail to make an appointment.

We can talk you through your options and advise you on how best to ensure that things are dealt with as you wish.

Making a will also allows you to control how money is used for the benefit of your children or other dependants, including how it can be used for their support, if they are still under 18. We can also advise you about how to manage potential tax liabilities, and the risks of becoming too ill to manage your own affairs.

Frome Carnival - A Fun Day Out

Last weekend saw the 2014 Frome Carnival - as you may have seen from the website, FDC Law has been a supporter of the carnival or many years, and this was no exception!

James Hollis and Jo Chapman selling programmes

Regular Carnival-goers will be used to seeing FDC's senior partner, James Hollis at the carnival, selling programmes. This year he was joined by Jo Chapman, who is a secretary within the Private Client department, and her daughter. 

We look forward to next year, and would like to offer congratulations to all who took part,and in particular to those who won their classes.

Sponsorship in our Communities

FDC Law is proud to be a local firm, with deep roots in our communities, and we feel that it is important to show our support for local events  and groups. 


If you follow us on Twitter or Facebook, you may have seen news of some of our current activities.


We are sponsoring a barrel at the Wessex Beer Festival, which takes place on next weekend, 5th and 6th September, at the Court Hotel in Chilcompton. We are looking forward to having a (responsible, of course!) taste of the Amethyst Bitter we have sponsored, and to meeting more of our friends and neighbours.


On a, perhaps, healthier note, we have also joined in Welton Rovers FC's  'Sponsor a seat' initiative, as well as purchasing advertising space at the ground. Look out for head of the Property Department, Jonathan Wood at matches.


 In Frome, we are long-term supporters of the Frome Carnival -this year taking place on 20th September - Senior Partner James Hollis can often be seen selling programmes on the day, and of the Cheese Show


In Keynsham, we have supported the town council in planting flowers and hanging baskets, and are sponsors of the Winter Festival and of the  Music Festival. 

Other events we have been involved with have included the Midsomer Quilting exhibition at Radstock Museum, Midsomer Norton carnival's Community Festival

While we cannot respond to every request for sponsorship or support, we do feel it is important to take an active role in supporting local events. 

If you are involved in organising a local event and wish to ask us about becoming involved, please contact our Practice Manager, Steve Hale, with the details of the event. Even if we are not able to provide financial support, we may be able to help publicise your event via our websites or by displaying posters in our office windows.

Are you about to buy your first house?

According to new figures released by LSL Property  Services, the number of first time buyers has risen by around 27% in the past year, with around 30,000 more people buying their first home in the first half of 2014, than in the same period last year. 

These first time home–owners are helped,  perhaps,  by the current low interest rates, and the government’s ‘Help to Buy’ schemes, which can help first time buyers with smaller deposits, although around 40% of first time byers get some help closer to home, from parents or other family members.

The average first time buyer will have put down a deposit of around £26,000 and be borrowing in the region of £120,000, although there are of course big variations across the country.

If you are buying your first home, or indeed if you are moving house, contact  Stuart Roxborough orJonathan Wood  at our Midsomer Norton office, Helen Middleton or Margaret Grant at our Frome Office, or Jayne Wells at our Keynsham office, for independent, expert advice and to guide you through the process.

Only a Quarter of Personal Injury Victims make a Claim

We often hear politicians and journalists talking about a ‘Compensation culture’, but recent research has shown that only around a quarter of people who suffer a personal injury go on to make a claim against the person or organisation responsible.

In many cases, this failure to claim is because they did not think that they would be entitled to claim, or that they assume that the claim would be of little value.

Of those surveyed who had made claims, around 13% had stated that they had not originally planned to claim, which suggests that they may not have understood their entitlement before taking advice.

Of course, no-one wishes to encourage frivolous or undeserving claims, but if you have been hurt in circumstances where you were not to blame, it makes sense to check whether you are entitled to compensation (which can include compensation for losses suffered as a result of the injury, such as lost earnings, repayment of expenses incurred, etc)

At FDC Law, our Litigation department is able to provide advice on all types of personal injury claims (including claims for Clinical Negligence) If you have been injured within the past 6 years, and are not sure whether you are entitled to claim, or if it is worthwhile doing so, contact Ben Whelan at our Keynsham office (also covering Midsomer Norton) or David Gazzard at our Frome Office,  to discuss your options

.

We offer a free, no obligation initial discussion and if it appears that you do have a claim, we will  discuss with you all possible funding options. We are usually able to offer a no-win, no-fee option

The Risks of Unregulated Will-Writers

You may have seen news reports recently that a Will-Writer,  Keith Webber, has been ordered by a court to repay over £360,000 he stole from the estates of his clients. Webber was also convicted of fraud and theft and given a 5 year prison sentence. 

Unlike Solicitors, who are subject to very strict regulation, will-writers and other non-lawyers dealing with the preparation of wills and the administration of a person’s estate are completely unregulated, which can leave clients high and dry if there is negligence or dishonesty by the will-writer, or even if the company simply goes out of business.

In Webber’s case, if he repays the money as ordered, the beneficiaries of the estates from which money was stolen will eventually receive their inheritances.

Had  he been employed by a solicitor, it is unlikely that he would have been able to continue to defraud clients in this way – for instance, at  FDC Law, we  have strict internal policies to ensure that files are reviewed on a regular basis, which would make it virtually impossible for a worker to steal from clients in this way. In addition, as part of the our LEXCEL accreditation we are audited annually by an independent  expert and, like other solicitors, have insurance which would ensure that victims would not be left out of pocket even in a worst case scenario.

If you would like to make, review or update your will, please make an appointment to see Sue Robertsor Naomi Hill at our Frome Office, or Darrell Collins or Susan Haines at our Midsomer Norton orKeynsham offices

TAX AVOIDANCE – A SOCIAL EVIL?

The current climate is enormously hostile to tax avoidance.  Everyone will have seen the recent high profile cases where there have even been calls for celebrities to lose their honours awarded by the Queen for charity work after acting on advice from their tax advisers in schemes to reduce tax liability.

Partner Darrell Collins explains, however, that there are still lots of things that you can do to legitimately to save tax, using the existing exemptions and allowances available to you and with a bit of simple good advice you can safeguard your family’s financial future without inviting the wrath of the Revenue.

The Courts have said in the recent case of Pit v Holt “artificial tax avoidance is a social evil which puts an unfair burden on the shoulders of those who do not adopt such measures”.

However, we live in a world where the National Audit Office reports that revenue raised by inheritance tax to March 2013 was £3.1b. There are legitimate straightforward steps that can be taken to limit liability for inheritance tax.  In the last few years there has also been increasing emphasis on the payment of Capital Gains Tax and this is of increasing relevance for those who wish to protect their property from being used to fund care fees.  The good news is that, in the right circumstances, your home and your family’s future can be safeguarded from heavy tax penalties.

For more information about tax planning contact Darrell Collins at our Midsomer Norton office on 01761 417575.