Let’s explore recent trends and legal developments in Wills, Lasting Powers of Attorney, and Probate. These insights highlight the importance of careful estate planning.
Charitable Legacies: A Growing Trend in Estate Planning
Co-Op Will writers report a 61% increase in charitable legacies. This surge coincides with the coronavirus pandemic, as more people aim to reduce inheritance tax through charitable giving.
Tax Benefits of Charitable Giving
Inheritance tax usually applies at 40% on estate values over £325,000. By leaving at least 10% of your estate to charity, you can reduce this rate to 36%. Better yet, charitable gifts are completely exempt from inheritance tax.
Factors Driving the Trend
Several elements contribute to this increase:
1. Asset values are rising
2. Death rates have increased
3. The tax-free allowance remains fixed until 2026
These conditions may lead more British families to face inheritance tax. Additionally, lockdowns have prompted people to reflect on their values and desire to make a difference.
A.D.E Wills’ Charitable Initiatives
We at A.D.E Wills actively support charitable giving. We offer:
– A free Will for those leaving a legacy to Oxford United in the Community
– Monthly partnerships with different charities to raise funds
Consider including a charitable legacy in your Will. You’ll potentially save on taxes while making a lasting impact on a cause you care about.
Testamentary Capacity: Navigating Legal Complexities
The Clitheroe v Bond [2020] judgment has reaffirmed the importance of an historic case law in determining testamentary capacity.
The Clitheroe v Bond Case
Jean Clitheroe’s 2013 Will excluded her daughter, Susan, based on beliefs later deemed irrational. The Will’s validity faced a challenge due to Jean’s alleged lack of capacity, stemming from grief over another daughter’s death.
Comparing Capacity Tests
This case highlighted two key tests for capacity:
1. Banks v Goodfellow [1870]: Requires testators to understand:
– The nature and effect of making a Will
– The extent of their estate
– And not be affected by delusions
2. Mental Capacity Act 2005 (MCA): Presumes capacity unless proven otherwise
The Court’s Decision
The court upheld Banks v Goodfellow as the primary test for testamentary capacity. This decision underscores the complexity of such cases and suggests potential for future legal developments.
Act Now: Register Your Lasting Power of Attorney
The Office of the Public Guardian (OPG) reports significant delays in registering Lasting Powers of Attorney (LPAs) due to coronavirus lockdowns.
Extended Processing Times
The OPG now estimates a 15-week process due to current backlogs.
Benefits of Early Registration
The OPG advises people to register their LPAs well in advance. Remember, an LPA only takes effect when you lose mental capacity or give permission to your attorney (for financial LPAs only).
Looking Ahead
The Ministry of Justice plans to discuss LPA modernisation this summer. They aim to create a more accessible system while maintaining protection against fraud and abuse.
How A.D.E Wills Can Support You
Whether you’re considering charitable legacies, worried about testamentary capacity, or need to set up an LPA, expert guidance proves invaluable. A.D.E Wills specialises in clear, tailored advice on all aspects of Wills and Lasting Powers of Attorney.
Don’t leave your estate planning to chance. Reach out to us today to ensure we properly document and legally enforce your wishes. Call 01865 507174 or email info@adewills.co.uk for personalised assistance.
Disclaimer: This article offers general information and does not constitute legal advice. Please consult a qualified legal professional for guidance on your specific situation.
