ACT NOW - Enduring Power of Attorney vs Lasting Power of Attorney - Deadline FAST Approaching!

I thought that i would take the opportunity to "flag up" a deadline that is fast approaching.

An Enduring Power of Attorney (EPA) is a legal document which i think of an a sort of insurance policy. I say now, who i want to deal with my financial affairs if in the future i can't deal with them personally.

What is an EPA - An Enduring Power of Attorney (EPA), is a legal document that enables someone (the donor) to appoint one or more persons (attorney(s)) to manage their financial affairs and property, either now or in the future - and crucially whether or not you are or are not mentally incapacitated.

If you do not have an EPA If you become ill or metally incapacitated and have no EPA, no-one can act on your behalf unless they first went to Court and are appointed "Receiver" for you - all a matter of a lot of time and a lot of expense.

Don't think your spouse and children can act for you without an EPA - in the case of mental incapacity and no EPA - they can't, not without court intervention.

From the 1st October Enduring Powers of Attorney (EPA) can no longer be made. Instead they will be replaced with a revised type of power called Lasting Power of Attorney (LPA). BUT EPA's inplace at 1st October will be operative!

The LPA's will be more expensive and lengthier. At the moment an EPA may cost you around £110 + VAT for a single and £200 + VAT for a double. The cost of the LPA will depend on who prepares the LPA. Estimates from lawyers vary - the figures i've heard vary between £700 + VAT + £1500 + VAT.

Click here and i explain why you should arrange an EPA asap

Inheritance Tax Podcast

My team of private client solicitors decided that a stint in front of the camera was required.



We therefore developed a podcast for our Inheritance Tax Planning Unit which we wanted to use to explain in layman terms what Inheritance Tax is all about - and how you can possibly avoid it!


The results can bee seen here. I must say i am NOT happy in front of the camera (and this probably shows) BUT the other members of my team were excellent.


I hope you like it

Top Ten Tax Planning Tips

As this is my first posting I thought I would start with a list of top ten tax planning tips.

We all believe we pay far too much tax, but not enough of us are actually doing anything about it!

The housing market boom has seen an increasing number of families with assets that take them over the Inheritance Tax (IHT) threshold - leaving them vulnerable to whopping tax bills.

What is the IHT threshold? - For 2007/2008 the threshold is £300,000. IHT is paid at 40% on amounts above the threshold

Here are some top tax tips for 2007 to help stop the Revenue becoming and extra beneficary of your estate. With forward planning you can minimise the tax burden and hopefully ensure that your family does not have to share your estate with the Revenue

Use the Annual Exemption of £3000 per year with a carry forward of £3000 from the previous tax year if unused. This gift is immediately exempt in the context of calculating IHT liability

Use the Small Gifts Allowance to give £250 to any one or more persons eaxh tax year, provided the gifts are not made to the same people receiving the annual exemption. For example, use the annual exemption to make gifts to three children. If they have partners and say 10 grandchildren between them, using the annual exemption and small gifts exemption you can give tax-free gifts of £6,250 each tax year.

Marriage Gifts - parents can give £5000 each, grandparents £2500 each and anyone else £1000 with no adverse IHT implications

Make Gifts Early - on death a portion of the estate, currently £300000 is charged to IHT at 0% unless substantial gifts, over and above the exemptions have been made within 7 years of dying. If you live for 7 years after amking gifts the gifts could effectively be exempt and once again there will be a full 0% tax allowance

Double Up - make sure you and your spouse or civil partner both take advantage of the allowances and exemptions by making gifts and having assets to utilise the 0% tax band

Trusts - if you don't want to lose control of the management of your capital or your children are too young to receive direct gift, consider setting up a trust. Trusts can still be very tax effective

Agricultural and Business Assets - these attract fantastic exemptions and relief

Surplus Income - give it away and do so on a regular basis and you could fall within another exemption - Lifetime Gifts out of Surplus Income. BUT keep records and establish a regular patten of gifts to satisfy the Revenue

Property Rich but Disposable Assets poor? consider taking out a mortgage to release capital to fund gifts

Consider IHT planning through certain investments - some provide excellent IHT saving opportunities. A financial adviser can help

If goes without saying that reviewing wills, investments and pension plans regularly and taking advantage of all the exemptions and allowances is vital.