by Saqib Khan | Dec 5, 2023 | General, Powers of Attorney, Wills
Introduction
As we age, the prospect of needing long-term care becomes a concern for many individuals and their families. Care homes in the UK provide essential support and services for elderly citizens, but they often come at a substantial cost. To mitigate the financial burden, some individuals consider disposing of their homes to save on care home fees. In this blog, we’ll explore the options available to you and discuss the important considerations when making such a significant decision.
Understanding the Care Home Fees in the UK
Before delving into the strategies for managing your home to save on care home fees, it’s crucial to grasp the basics of how these fees work. In the UK, care home costs can vary significantly based on factors such as location, level of care needed, and the specific care home you choose. Generally, these fees cover accommodation, meals, personal care, and social activities.
The two primary types of care home fees in the UK are:
- Self-Funded Care: If your savings and assets, including your home, exceed the local authority’s threshold (currently £23,250 in England), you’ll be considered a self-funder and responsible for covering the full cost of your care.
- State-Funded Care: If your assets fall below the threshold, you may qualify for financial assistance from the local authority to help cover the cost of your care. However, you’ll still be required to contribute a portion of your income towards your care.
Exploring Strategies to Manage Your Home
- Renting Out Your Property: One strategy to consider is renting out your home, which can provide you with a steady income stream. This income may help you meet the cost of care home fees without depleting your savings. However, this approach may not work for everyone, as managing a rental property can be demanding, and the income generated may not cover the full cost of care.
- Deferred Payment Agreements: In England, you can explore the option of a Deferred Payment Agreement (DPA) if you meet specific criteria. With a DPA, the local authority covers your care home fees upfront, and you agree to repay them when your property is sold, typically after your passing. This can help protect your home while ensuring you receive the care you need.
- Gifting Your Property: Some individuals may choose to gift their property to family members or loved ones before entering a care home. However, this can have implications for inheritance tax and could be considered “deprivation of assets.” It’s crucial to seek legal and financial advice before pursuing this option to ensure it aligns with your goals and adheres to UK law.
- Equity Release Schemes: Equity release schemes allow you to access the value of your home without having to sell it. This can provide you with funds to cover care home fees while allowing you to remain in your home for as long as you wish. However, these schemes also come with risks, so it’s essential to fully understand the terms and potential consequences.
Conclusion
Navigating care home fees in the UK can be complex and emotionally challenging. Deciding what to do with your home is a significant part of this process, as it can impact your financial stability and the legacy you leave behind. It’s crucial to consult with financial and legal professionals who specialize in elderly care and estate planning to make informed decisions.
Ultimately, the goal should be to find a solution that ensures you receive the care you need without compromising your financial security or leaving your loved ones with unexpected financial burdens. By exploring the various strategies available and seeking expert guidance, you can make a well-informed choice that aligns with your unique circumstances and priorities.
Please call us if you have any concerns about your property with regards to the above. You can call our property team on 0161 850 9911 or email us on propertyteam@khanmather.co.uk.
by Saqib Khan | Nov 28, 2023 | General, Powers of Attorney, Wills
In a world brimming with misinformation, it’s crucial to set the record straight when it comes to legal matters. In the realm of UK law, several misconceptions have gained traction over the years, especially surrounding topics like common law marriage, wills, and inheritance. Let’s dive into these myths and unveil the truth behind them.
Myth #1: Common Law Marriage Holds Legal Weight
One of the most pervasive myths is the notion of “common law marriage.” Many couples believe that living together for a certain period or presenting themselves as married will grant them the same legal rights as legally married couples. However, the reality is quite different.
There is no legal recognition of common law marriage. Regardless of how long a couple has lived together, their legal rights and responsibilities do not mirror those of a married couple. This means that property, assets, and financial matters are not automatically protected by law in the same way they would be for married couples. In case of separation, each partner generally retains ownership of their individual assets, and disputes can become complex without proper legal agreements in place.
Myth #2: Wills Are Only for the Elderly or Wealthy
Another misconception revolves around wills. Many people believe that wills are only necessary for the elderly or those with significant wealth. However, creating a will is a crucial step for anyone who wants to ensure that their wishes are followed after their passing.
A will allows you to decide how your assets will be distributed, nominate guardians for your minor children, and even specify your funeral arrangements. Without a will, your estate will be distributed according to the intestacy rules, which might not align with your wishes. It’s essential to periodically update your will to reflect any changes in your life, such as marriage, divorce, or the birth of children.
Myth #3: Inheritance Laws Apply Equally to Everyone
The belief that inheritance laws apply uniformly to all individuals is another myth that needs debunking. Inheritance laws are influenced by various factors, including marital status, the presence of a will, and the value of the estate.
Spouses and civil partners have certain legal rights to inherit, even if they are not explicitly mentioned in the will. However, cohabiting partners, regardless of the duration of their relationship, do not have the same automatic rights. If you want your partner to inherit, it’s crucial to create a will that clearly outlines your wishes.
Dispelling the Myths: Knowledge is Key
Dispelling these myths is not just about legal accuracy; it’s about empowering individuals to make informed decisions about their relationships, assets, and future. Understanding the truth behind these misconceptions can help individuals protect their interests and their loved ones.
While the UK law might not recognize common law marriage, it does provide options for cohabiting couples to protect their rights through legal agreements. Creating a cohabitation agreement can help clarify ownership of property, financial responsibilities, and arrangements in case of separation.
When it comes to wills and inheritance, it’s never too early to start planning. A will provides you with the agency to distribute your assets according to your wishes and can prevent unnecessary disputes among surviving family members. Remember, creating a will is not just for the wealthy; it’s for anyone who wants to ensure their legacy is preserved as they intended.
In a world where misinformation can lead to unnecessary hardships, understanding the legal realities of common law marriage, wills, and inheritance is paramount. By dispelling these myths and seeking accurate legal advice, individuals can navigate these matters with confidence and security.
Please call our property or wills department depending on what issue you would like to discuss on 0161 850 9911.
by Saqib Khan | Sep 26, 2023 | Powers of Attorney, Wills
Introduction
A Lasting Power of Attorney (LPA) is a legal document that allows someone to appoint one or more individuals, known as attorneys, to make decisions on their behalf if they become unable to do so themselves due to illness, disability, or other circumstances. While choosing the right attorney is crucial, situations may arise where you need to remove an attorney from your LPA. This blog will guide you through the process of removing an attorney from your LPA.
Understanding the LPA
Before we delve into the process of removing an attorney, it’s essential to understand the different types of LPAs in the UK:
- Property and Financial Affairs LPA: This allows your attorney to manage your finances, property, and assets on your behalf.
- Health and Welfare LPA: This empowers your attorney to make decisions about your healthcare, medical treatment, and daily care.
Depending on your circumstances, you may need to remove an attorney from either or both types of LPAs.
Reasons for Removing an Attorney
There can be various reasons for wanting to remove an attorney from your LPA, including:
- Loss of Trust: If you no longer trust your attorney to act in your best interests.
- Incompetence or Mismanagement: If your attorney is not handling your affairs properly or is incapable of doing so.
- Personal Conflict: If you and your attorney have had a falling out or a personal dispute that hinders their ability to make decisions on your behalf.
Steps to Remove an Attorney from Your LPA
- Review Your LPA Document: Start by carefully reviewing your LPA document to ensure you have the legal authority to remove an attorney. Consult a solicitor if you are unsure about the terms and conditions.
- Choose a Replacement Attorney: If you are removing an attorney from your LPA, you may need to appoint a replacement attorney if you still want someone to act on your behalf. Ensure the replacement attorney is willing and able to take on the responsibility.
- Complete the LPA Revocation Form: To officially remove an attorney from your LPA, you must complete the LPA revocation form. This form can be obtained from the Office of the Public Guardian (OPG) or downloaded from their website. The form requires your details, the attorney’s details, and the replacement attorney’s details (if applicable).
- Notify the Attorney: You should inform the attorney you wish to remove about your decision. This is often done in writing to ensure there is a record of the communication.
- Witness and Sign the Form: You must sign the LPA revocation form in the presence of an independent witness. The witness must also sign the form. The witness cannot be the attorney or the replacement attorney if you are appointing one.
- Send the Form to the OPG: Once the form is completed and signed, send it to the Office of the Public Guardian. There may be a small fee associated with this process, so check the current fee structure on the OPG website.
- Notify Relevant Parties: Inform any institutions or individuals that interacted with the attorney about the revocation of their authority. This could include banks, healthcare providers, and care homes.
- Register the New LPA (if applicable): If you have appointed a replacement attorney, you may need to register the new LPA with the OPG. The registration process ensures the legality of the new attorney’s authority.
Conclusion
Removing an attorney from your LPA is a legal process that must be done correctly to protect your interests. It’s essential to follow the appropriate steps, including notifying the attorney and completing the necessary forms. Consulting with a solicitor who specializes in this area of law can provide valuable guidance and ensure that you navigate the process smoothly. Always remember that an LPA is a powerful legal document, and its management should be approached with care and consideration for your best interests.P
Please get in touch if you would like any help with creating or altering an LPA on 0161 850 9911.
by Saqib Khan | Sep 6, 2023 | General, Powers of Attorney, Wills
Introduction
Creating a will is a vital step in ensuring that your assets are distributed according to your wishes after you pass away. Many individuals contemplate whether to use a DIY will kit or seek the assistance of a solicitor to draft their will. While DIY will kits may seem like a convenient and cost-effective option, there are several compelling reasons why it is preferable to have a solicitor draw up your will. In this blog post, we will explore these reasons to help you make an informed decision regarding your estate planning.
- Legal Expertise
Solicitors are legal experts who specialize in various areas of law, including wills and estate planning. They possess a deep understanding of the complex legal requirements and nuances involved in drafting a will. When you hire a solicitor, you benefit from their knowledge and experience, ensuring that your will is legally sound and complies with all relevant laws and regulations.
- Tailored Advice
Every individual’s circumstances are unique, and a one-size-fits-all approach provided by DIY will kits may not address your specific needs. A solicitor can provide personalized advice and guidance based on your financial situation, family dynamics, and personal preferences. They can help you make informed decisions about how to distribute your assets and address any potential complications that may arise.
- Avoiding Errors and Omissions
DIY will kits are notorious for errors and omissions that can lead to disputes, delays, and additional expenses during the probate process. Solicitors have the expertise to carefully review your will, ensuring that it accurately reflects your intentions and is free from ambiguities or mistakes that could cause legal issues down the line.
- Updates and Amendments
Over time, your circumstances may change, such as acquiring new assets, getting married or divorced, or having children. A solicitor can help you regularly review and update your will to ensure that it remains current and reflects your changing life circumstances. This proactive approach can prevent future disputes and ensure that your wishes are always up to date.
- Reducing the Risk of Challenges
Wills are sometimes contested by disgruntled family members or beneficiaries who believe they have been unfairly treated. A professionally drafted will by a solicitor is less likely to face challenges since it is less susceptible to legal loopholes or ambiguity. Solicitors can also provide valuable documentation to demonstrate your mental capacity and intention when creating the will, further reducing the risk of disputes.
- Peace of Mind
Perhaps one of the most significant advantages of having a solicitor draw up your will is the peace of mind it provides. Knowing that your estate planning has been handled by a legal professional who has considered all relevant factors and potential complications can alleviate stress and uncertainty, both for you and your loved ones.
Conclusion
While DIY will kits may seem like a cost-effective option, the potential pitfalls and complications that can arise from using them make it advisable to hire a solicitor for this crucial task. A solicitor’s expertise, tailored advice, error prevention, and the ability to adapt to changing circumstances provide you with the assurance that your will is legally sound and aligned with your wishes. Investing in a solicitor for your will ensures that your estate is managed smoothly and in accordance with your intentions, offering you and your loved ones the peace of mind you deserve.
Georgina Hardman heads our wills department and would be happy to chat any concerns you may have. We also offer a free will for all simple wills. Please call Georgina on 0161 850 9911 or email her at georgina.hardman@khanmather.co.uk
by Saqib Khan | Apr 16, 2023 | Powers of Attorney, Wills
Introduction
Creating a will is a crucial step in securing your assets and ensuring that your final wishes are carried out after your passing. However, simply drafting a will is not enough. Registering your will can provide added protection and peace of mind for both you and your loved ones. In this blog post, we will explore the reasons why you should consider registering your will.
- Legal Validity
Registering your will adds a layer of legal validity to your document. While an unregistered will is still legally binding, registering it helps to establish its authenticity. It provides an additional layer of evidence that can help avoid potential disputes or challenges in the future. Registering your will ensures that the document can be easily located and verified when the time comes.
- Safekeeping and Accessibility
One of the most significant advantages of registering your will is the safekeeping and accessibility it offers. By registering your will with a trusted organization or solicitor, you can be confident that it will be securely stored and easily located when needed. This ensures that your loved ones will be able to locate and access your will promptly, preventing any unnecessary delays or complications during the probate process.
- Privacy Protection
By registering your will, you gain the option to keep the contents of your will private. When a will is registered, only limited information, such as the location of the will and the name of the organization or solicitor holding it, will be made public. This added layer of privacy can be especially important if you have sensitive or personal information contained within your will that you wish to keep confidential.
- Enhanced Certainty
Registering your will can provide enhanced certainty regarding its existence and content. In the event that a will cannot be located, or if there are doubts regarding its validity, registered wills can be easily tracked down and verified. This helps ensure that your wishes are respected and that your estate is distributed according to your intentions.
- Simplified Probate Process
Registering your will can significantly simplify the probate process for your loved ones. When a will is registered, the organization or solicitor holding it will typically provide guidance and support to the executor or beneficiaries during the probate process. They can help navigate the legal requirements and ensure that the necessary steps are followed correctly, reducing stress and confusion during an already challenging time.
Conclusion
While creating a will is an important step in estate planning, registering your will provides numerous benefits that should not be overlooked. From legal validity and safekeeping to privacy protection and simplified probate, registering your will offers peace of mind to both you and your loved ones. By taking this extra step, you can ensure that your final wishes are respected, and your estate is distributed according to your desires. Make the wise decision to register your will and secure the future of your loved ones.
Call 0161 850 9911 and speak to Georgina Hardman on 0161 850 9911.
by Saqib Khan | Mar 30, 2023 | Powers of Attorney, Wills
Probate is a legal process that occurs after someone dies, which involves validating their will (if they had one), identifying and distributing their assets, and settling any outstanding debts or taxes. The purpose of probate is to ensure that the deceased person’s wishes are carried out and that their assets are properly distributed to their heirs or beneficiaries.
While probate is an essential process in the United States, it can be lengthy and complicated. Here’s what you need to know about probate.
What is probate, and why is it necessary?
Probate is a legal process that takes place after a person dies, which involves validating their will (if they had one), identifying their assets, and distributing those assets to their beneficiaries or heirs. Probate is necessary to ensure that a deceased person’s assets are distributed according to their wishes and that any outstanding debts or taxes are paid.
How does probate work?
The probate process typically begins when the executor of the deceased person’s will files a petition with the probate court in the county where the deceased person lived. The court then reviews the will, appoints an executor (if necessary), and validates the will.
The executor is responsible for identifying and inventorying the deceased person’s assets, notifying creditors, and settling any outstanding debts or taxes. Once these obligations have been met, the executor can distribute the remaining assets to the beneficiaries or heirs according to the deceased person’s wishes.
What are the advantages and disadvantages of probate?
One of the advantages of probate is that it provides a legal framework for ensuring that a deceased person’s assets are distributed according to their wishes. Additionally, the probate process can provide a forum for resolving disputes between beneficiaries or heirs.
However, probate can also be a lengthy and expensive process. The costs of probate can include court fees, Solicitors fees, and executor fees. Additionally, the probate process can be emotionally draining for family members, particularly if there are disputes over the distribution of assets.
How can you avoid probate?
There are several ways to avoid probate, including:
– Creating a living trust: A living trust allows you to transfer ownership of your assets to a trust while you are still alive. After you die, the assets in the trust are distributed to your beneficiaries without the need for probate.
– Naming beneficiaries: Many financial accounts, such as retirement accounts and life insurance policies, allow you to name beneficiaries. When you die, the assets in these accounts are distributed directly to your beneficiaries without the need for probate.
– Owning property jointly: If you own property jointly with someone else, such as a spouse or partner, the property will pass to them automatically when you die. However, it’s important to note that joint ownership can have tax and legal implications that should be carefully considered.
In conclusion, probate is an essential legal process that ensures that a deceased person’s assets are distributed according to their wishes. While probate can be lengthy and expensive, there are ways to avoid it, such as creating a living trust or naming beneficiaries. It’s important to consult with an attorney or financial advisor to determine the best course of action for your specific circumstances.
Please call Georgina Hardman in our Wills and Probate Department on 0161 850 9911 to discuss any issues regarding probate.
