Let's Talk About it - Dying Matters

According to a survey carried out on behalf of The National Council for Palliative Care the following was found

• 81% of people have not written down any preferences around their own death, and only a quarter of men (25%) and just over one in three women (35%) across England have told anyone about the funeral arrangements they would like to have after they die.
• 56 -70% of people would prefer to die at home, yet of the 500,000 people who die each year in England, 58% die in hospitals.
• Nearly two-thirds of people (60%) have not written a will – including a quarter (25%) of over-65s. 

Without communication and understanding, death and terminal illness can be a lonely and stressful experience, both for the person who is dying and for their friends and family. Dying people and their families can experience a tremendous sense of isolation and can feel shut out of social circles and distanced from their communities.

A lack of conversation is perhaps the most important reason why peoples’ wishes go ignored or unfulfilled; if we do not know how to communicate what we want, and those around us do not know how to listen, it is almost impossible to express a clear choice.

It has been said that what we fear most about dying is the associated loss of control. By empowering patients to express their wishes, that control can be restored.

The Dying Matters Coalition believes that promoting openness and communication are the first steps to achieving this. They are committed to supporting changing knowledge, attitudes and behaviours around death and dying, and aim to encourage a greater willingness to engage on death and bereavement issues. http://www.dyingmatters.org.uk/

Reasons Why a Discretionary Trust in your Will is still a good idea.

Discretionary Trust, Wills & Inheritance Tax

Although any unused nil rate band is transferred to a surviving spouse or civil partner, making provision for a discretionary trust in your will could still be worthwhile.

How do the inheritance tax rules work?

The first slice of any individual’s estate, including gifts that they have made in the last seven years, is generally free of IHT. This slice, referred to as the ‘nil rate band’, and is currently £325,000.. Inheritance tax is charged at 40% on the amount that exceeds the nil rate band.

Any unused nil rate band can now be transferred to a surviving spouse or civil partner. This means that where the second death occurs on or after 9^th October 2007, the benefit of any unused nil rate band on the death of the first spouse is transferred to the estate of the surviving spouse, even where the first death occurred before 9^th October 2007.

The amount of the nil rate band potentially available for transfer will be based on the proportion of the nil rate band that was unused when the first spouse died. The following examples explain how this works:

Example 1
On the first death none of the original nil rate band (say £150,000) was used because the entire estate was left to a surviving spouse and benefited from the spouse exemption. If the nil rate band when the surviving spouse dies is £350,000, the available nil rate band on the second death would be increased by 100% to £700,000.
Example 2
If on the first death the chargeable estate is £150,000 and the nil rate band was £300,000, then 50% of the original nil rate band would be unused. If the nil rate band when the surviving spouse dies is £350,000, then the total nil rate band available on the second death would be increased by 50% to £525,000.
The amount of nil rate band that can be accumulated by any one surviving spouse is limited to the value of the nil rate band in force at the time of their death. This means the maximum anyone is entitled to is double the nil rate band on their death.

Why include a discretionary trust in your will?

Previously, well advised couples might have included a discretionary trust in their will to utilise the nil rate band on the first death rather than wasting it by passing assets to the surviving spouse under the spouse exemption. Although any unused nil rate band can now be transferred to the surviving spouse or civil partner, there are still circumstances where this type of planning remains beneficial.
These circumstance include:

• complex succession plans, particularly where there is a second marriage and/or step children
• estates containing assets where the value is expected to grow faster than the anticipated future increases in the nil rate band allowance
• estates containing assets eligible for business property relief or agricultural property relief.

What is a discretionary trust?

A discretionary trust is a very flexible type of trust. The trustees of the trust own the trust’s property on behalf of the beneficiaries. The beneficiaries need not all even be born at the time the trust is created.
The trustees can pay out income or capital to any one or more of the beneficiaries entirely at their own discretion. No beneficiary has a right to demand income from a discretionary trust.

How do I provide for the survivor?

The surviving spouse or civil partner can be included as one of the beneficiaries of the trust. The trustees can be empowered to pay out income or the underlying capital to the surviving spouse or civil partner at their discretion. Thus the surviving spouse or civil partner can enjoy both the income and capital of the trust.

How do you guide the trustees?

This is usually achieved by leaving a ‘letter of wishes’ with the will. Such letters are quite usual and are read alongside the will, though they are not binding on the trustees. It is quite normal for such a letter to state that the first aim for the trust is to ensure adequate provision is made for the surviving spouse or civil partner for the remainder of his or her days. The letter will usually say what is desired to happen thereafter, such as passing assets to the children.

How does the trust operate?

The executors will pass the assets that are to be the trust property to the trustees. Very often, the trustees are the same people as the executors. In this case, they simply own the property as trustees as opposed to holding it as executors.
The trustees will then need to register the trust with HM Revenue and Customs (HMRC) who will send a short form for the trustees to complete. This enables HMRC to register the trust.

What sort of property should be included in the trust?

In many instances, it will not matter what property is included in the trust. However, where a person holds business or agricultural property, significant tax advantages can be obtained in structuring legacies between the trust and a surviving spouse or civil partner and further tax planning advice should be sought. Further advice should also be sought where all or part of the nil rate band legacy will need to be satisfied by a transfer of the family home, as additional structuring will be required to ensure that the planning remains effective. Drafting of the clauses can be critical to ensure that no unexpected tax charges arise eg stamp duty land tax.

Who should I nominate as trustees?

This is a very personal decision. Essentially, you will probably want to choose trusted family members or close friends. You should check that the people you nominate are willing to act for you. You might also wish to include a professional trustee, though this may be dependent on the complexity of your affairs. Trusts and wills are often written on very flexible terms allowing trustees greater discretion in their management. The increasing complexity of modern trust and tax law as well as the reluctance of many people to become involved in decisions that require not only a professional competence but also an independent detachment from family dynamics means that an independent trust company may be the best choice – especially as the trust company is always there and doesn’t die, retire or take holidays.

Bicester Wills Backs the 100+ networking event on the 18th of May

Well not long now until the highly anticipated joint networking event takes place in Trinity in Bicester.  Lets hope as many people as we hope will turn up.  We even made it into the papers - see the link below for the coverage from the Bicester Review



http://www.bicesteradvertiser.net/news/bicester/9016126.Bicester_businesses_make_connections/

Where there’s a will, there’s a hospice boost

A BICESTER businesswoman is proving that where there’s a will there’s a way to boost the funds of Sobell House Hospice Charity

Gail Church, who runs Bicester Wills and is regional chairman of the Society of Will Writers (SWW), is doing her bit to mark the hospice’s 35^th birthday by donating £35 to the hospice for every will she writes during May and June.

As part of the campaign, Gail is also offering a free guide to will writing and on Friday 20^th May will be on hand at the Sobell Charity shop in

Market Square

, Bicester to talk to people about the importance of having a properly written will.

Gail said: “For 35 years the hospice has helped so many people so this is my small way of giving something back to the hospice. I also hope this will enable me to raise awareness of the importance of people having a will. An alarmingly high number of people are still dying without leaving a will which just adds to the stress and grief of loved ones left behind. Writing a basic will is a reasonably straightforward and relatively inexpensive task if you use a professional will-writer.”

Kath Morris, Head of Fundraising at Sobell House Hospice Charity, said: “We are so reliant on the support of people who help us with our fundraising so I wish Gail every success with her campaign to raise awareness of having a will written and, in the process, generating a much-needed boost to hospice funds.”

If anyone would like a free copy of Gail’s guide to will writing, they can contact her on 0800 9704897.

Members of the Society of Will Writers undergo continued professional development training and carry professional indemnity insurance.