On 1st February 2012 changes to the succession thresholds came into force. The legal changes increase the maximum property and cash values which can be transferred to a surviving spouse or civil partner where a person dies without a Will in Scotland. They also increase the threshold for small estates (where a Sheriff Clerk can assist with the administration of an estate) from £30,000 to £36,000.
What are the new rules?
Where a person dies without a Will in Scotland, their surviving spouse or
In these times of economic strife where house prices are rising faster than your income, it may seem difficult to imagine being able to afford your own home. We are asked many times - how can I get on the property ladder in Scotland?
There are a number of schemes available to assist with buying a property:-
Shared Equity
At the start of a New Year, you may be turning your thoughts to putting your affairs in order. As part of this, you should consider granting a power of attorney in Scotland. Read on for our top 5 questions and answers on Powers of Attorney.
1. What is a Power of Attorney?
Ordinarily gifts are handed over, thanks are expressed, and the parties move on with no further thought to any legal implications. But what if that 'present' is a large cheque or valuable item? What is the difference between a gift & a loan? It depends on the circumstances and the relationship between the donor and donee. If you are unsure, put it in writing!
A case in England involving Leonard Taylor and the executor of his late partner Doris Luker is worth noting:-
As man's best friend, it's no surprise that many people want to provide for their dogs in their Wills. However, dogs can't own property in their own right and therefore a bequest of a specific sum of money or item to a dog (or any pet) is not effective. So what happens to my dog if i die?
Available options
As a pet owner, you might want to consider:-
Here are Inheritance Tax planning tips for the tax year end which should be implemented before the end of the tax year otherwise they risk being lost altogether.
Why consider Inheritance Tax planning?
Tax planning provides an opportunity to pass assets to the next generation in the most tax efficient manner.
Each individual has an Inheritance Tax free allowance known as the Nil Rate Band - subject to some exceptions. Any assets held by you in excess of the Nil Rate Band are taxed at
Planning a gap year? You will no doubt have spent time deciding on your itinerary and making sure you have all the necessary visas, but have you given any thought to ensuring you know the legal essentials for gap year students?
Most young people will not have had any reason to visit a solicitor before, but if you are planning your dream gap year you should add a trip to the family lawyer to your 'to do' list before setting off on your travels!
What
It is a common misconception that Powers of Attorney are only for the elderly. However, accidents or illness can happen to anyone at any time and it is sensible to give thought to putting a Power of Attorney in place now, as a safety net for the future. Ask yourself the question - do I need a Power of Attorney?
What is a Power of Attorney?
A Power of Attorney is a legal document giving someone else authority to act on your behalf should you
Does your Will include a Legacy to Charity? If you are thinking of doing this there are some facts you may want to consider.
Making provision for Charities could
Providing for a disabled loved one following your death is not always straightforward - you want them to have enough money to be comfortable but don't want to affect their entitlement to state benefits, many of which are means tested. One of the most effective ways of providing for a disabled beneficiary is using a disabled person's trust within your Will. As well as providing protection for the beneficiary, if set up correctly, the trust can also avoid certain tax charges normally associated with trusts.
For first-time buyers or those who have been out of the property market for a while, the steps involved in purchasing a property can be daunting. So how do I buy a home in Scotland? Each transaction will differ depending on the circumstances, but the initial steps are:-
How do you go about choosing trustees and executors in your Will?
The person or people appointed by you to administer your estate when you die are required to fulfil their role of ingathering your estate by:
- paying off debts and expenses (from your funds, not theirs!)
- distributing the estate in accordance with your Will or, if no Will, in terms of the laws of intestate succession.
Without a Will the people appointed by law may be people you do not like, do
Are Home Reports here to stay or should Scotland scrap Home Reports?
There are grumblings amongst MSPs. The Scottish Tories want them scrapped. David McLetchie MSP, Scottish Conservative Chief Whip, said: "In the best of times, Home Reports were an expensive luxury. However, nowadays figures showing that the housing market is struggling to return to where it was a couple of years ago they are madness".
Why have Home Reports?
The single survey for the Home Report was intended to be:
Will law reform change the impact of dying without a Will in Scotland? Society and family structures have changed considerably since the current law on succession came into force in 1964 and there is widespread support for the law to be updated to reflect this.
Current Rules
Where a person dies without a Will (intestate) his spouse/civil partner has prior rights to his estate:
Powers of Attorney and Guardianship are often confused and I am regularly asked for advice on which is more appropriate. So Power of Attorney vs Guardianship, what's better? Although both concepts are regulated by the Adults with Incapacity (Scotland) Act 2000 and have similar effects, there are significant differences between the procedure for each.
What is a Power of Attorney?
A Power of Attorney is a legal document appointing someone to act for and make decisions on behalf of the granter. The Power of Attorney
What are living Wills?
They are:
- a statement expressing your views about how you would like to be treated in the future
- a Will of sorts but applies whilst you are alive not after your death
- essentially an expression of your wishes set out in advance of illness at a time when you have the mental capacity to understand the issues involved and give clear directions
- used to outline circumstances in which you'd like medical treatment withheld e.g. if you suffer
Attorneys acting under a Continuing and Welfare Power of Attorney must comply with the five guiding principles set out in the Adults with Incapacity (Scotland) Act 2000. Arguably, the most important of these is that an Attorney must always act in the best interests of the adult. Does this include tax planning?
Best interests of the adult - not always clear cut?
At first glance, it seems that deciding what is in the best interests of the adult is pretty straightforward. However, grey areas often
"Where there's a wedding there's a Will ....or not!" The wedding of Prince William and Kate Middleton may have had you oohing and aahing at the pomp and circumstance, but did it make you think carefully about the legal implications of marriage and what it means for the succession to your estate never mind the succession to the Crown and the future of the monarchy? Probably not!! Are you Scottish and don't have a Will? Read on...
Did You Know?
Around 70 % of us
"Help! My Aunt Has Dementia and No Longer Understands". Under Adult with Incapacity Legislation - Would a Guardianship help?
Jean recently visited the office looking for advice on how she can help her elderly auntie, who's in hospital. The medical staff caring for Jean's aunt believe she no longer has capacity to make decisions on her own behalf but have told Jean that she has no legal authority to make decisions for her aunt.
Jean sought legal advice, which confirmed that as her aunt's nearest
Following a recent review, the Scottish Government announced they will not be seeking to remove the distinction between the types of property for the purposes of calculating legal rights. The Scottish Law Commission proposed to amend the calculation of legal rights to take into account the deceased?s entire estate both heritable (land and buildings) and moveable (cash, money in the bank, shares, furniture, cars, jewellery and other personal effects).
Legal rights mean that a deceased person cannot entirely disinherit family members.
