Thursday, 31 July 2014

Carry On Giving: how to manage the CGT bill on gifts

With asset values on the rise, many of my clients’ thoughts are turning to Inheritance Tax (IHT) planning.  That can sometimes lead to thoughts about giving away assets to children in lifetime in the hope of surviving seven years.  However, it seems even the best laid IHT mitigation plans can come unstuck when Capital Gains Tax (CGT) is factored in. 

Unfortunately, gifts still count as disposals at market value for CGT purposes so, unless a relief (such as private residence relief) applies, gifts can trigger CGT and the giver may need to find extra, liquid funds, above and beyond the gift itself, to pay the resulting CGT bill. 

Thursday, 17 July 2014

‘One man, two guvnors’: appointing deputies in the Court of Protection

Since February, when the President of the Family Division and the Court of Protection issued practice guidance on the publication of Court of Protection decisions, there have been many more Court of Protection cases reported in the mainstream press. 

If publication of cases raises awareness among the general public of the benefit of planning for incapacity, that alone will make it worthwhile.  Many people are still unaware of what could happen to their assets if they become incapable of managing them or what the options are in this respect.

Thursday, 3 July 2014

Dying without a will – the hard facts

‘I really must get around to writing a will!’  I have heard that refrain from several wealthy individuals recently and it’s often easy to assume that everyone who should have a will knows that and has one.  But such assumptions are dangerous.

I am constantly surprised by who doesn’t have a will.  However, the surprise works both ways because those who haven’t made a will are usually amazed to learn from me how the intestacy rules will operate on their death if they don’t make one.