Mark Jackson
18th August 2009

Mark Jackson retired from practice on 31st July 2009. We thank Mark for all he has done since he merged his practice with ours in 2007. The Partners and staff wish him a long and happy retirement and extend our best wishes to him and his family

Inheritance Tax Planning /Spousal Bypass Trusts
18th August 2009

Although the introduction of the transferrable nil rate band (which coincided with the fall in property prices) has taken many persons outside the scope of inheritance tax there are still many individuals for whom lifetime and testamentary tax planning are important.

To summarise:

• Wills

  Before the introduction of transferrable nil rate bands many married couples included nil rate band discretionary trusts in their Wills. Whilst these are not always necessary they should still be considered in certain cases.
  In particular:-

  • Cohabiting couples for whom no transferable nil rate band exists.
  • Those concerned about residential care fees who wish to 'shield' assets from the Local Authority.

• Lifetime tax planning

  A 'Spousal Bypass Trust' is a very useful tool for couples (especially cohabitants) whose estates, despite the new rules, may be liable to inheritance tax. A lifetime trust can be started, with a small amount of money and pension scheme trustees can be asked to pay death in service benefits to the trust. The survivor can dip into the fund to the extent that he/she needs to but on his/her death anything that remains can be passed to the next generation with more favourable tax treatment.

Please contact us if you require further information. Gareth Reynolds has considerable experience in this area.

HIPS Changes

The following changes will come into effect on 6 April 2009:

• The temporary first day marketing provisions will cease so that the basic information contained in the HIP will have to be available before the Seller can start marketing the Property. Up to 28 days will be allowed to provide information that may take longer to obtain (such as the property search).
• A Property Information Questionnaire will have to be contained in the HIP.

In the light of this it is more important than ever that Sellers give instructions for the preparation of a HIP as soon as the decision is made to market the Property. The Property Information Questionnaire is technical in nature and needs to be completed carefully to avoid the risk of a subsequent claim for misrepresentation. For that reason we believe, more than ever, that Solicitors are best placed to provide HIPS.

As members of the Homeready group we can provide HIPS quickly, efficiently and at competitive price. You can view the Home Ready website at www.home-ready.co.uk

Energy performance certificates

Energy Performance Certificates (EPC'S) are now compulsory on residential lettings. Residential Landlords are now required to make an EPC available, free of charge, to prospective tenants prior to entering into a contract to let the Property.

EPC's are also now required for lettings of all commercial properties. We have a panel of energy assessors who can prepare certificates at competitive rates. Please contact any of our offices for further information.