Home Reports provide buyers, solicitors and mortgage lenders with a clear market valuation of residential property on the open market for sale and give detailed information on the condition of the property.
The onus is now with the seller of a property in Scotland, who wishes to sell their residential property on the open market, to provide a home report to any potential buyers. Failure to do so could result in you being fined up to £500.
A Home Report comprises three separate reports these
Are you the owner of a property in a tenement? If you are, can you answer the following:
If you are unable to answer these questions, and repairs are required in your tenement, the starting point is to check the title deeds which relate to your property.
The Office of Tax Simplification (OTS) has made some recommendations and proposals to make changes to Inheritance Tax. Whilst these proposals may look good on the surface, do they actually lead to the elimination of some useful tax breaks such as taper relief?
A welcome proposal made by the OTS is the reduction of the seven-year gifting rule to five years. This would see individuals being able to make gifts to their children and only have to survive five years for it to
Often people will ask - what is the difference between a Power of Attorney and Guardianship or if one is better than the other? Our simple guide below explains the difference.
Power of Attorney is a legal document which you ('the grantor') grant in favour of another person ('the attorney') to make decisions relating to your finances, property and/or welfare. In Scotland this is known as a continuing and welfare power of attorney (lasting and enduring power of attorney in England &
Dependent upon your family circumstances, it may be sensible to consider including a liferent provision in your Will. However, what is a liferent exactly and how may it benefit you?
A liferent can be used where you wish your spouse, for instance, to benefit from the income from your assets or be in a position to use those assets, without them having outright entitlement to/ownership of those assets. Instead, the assets will ultimately pass to others; most commonly, your children.
A
It's that time of year again. Sun, sea and sand... it's holiday time.
Multi-generational travel has increased markedly over the past few years. No longer is it simply mum, dad and the children jetting off abroad, it is now mum, dad, the grandparents, the grandchildren etc. Whilst family time on those long summer days is on everyone's mind, it is also important to consider what if something happened to all of us? Do I need a failsafe beneficiary?
Deciding upon what you wish to happen to your body when you die is never an easy thought. What would your family want? Should you be buried? But along with that can often come additional expenditure on top of funeral costs, including purchasing a lair etc. Or should you be cremated and have your ashes scattered in that special place?
Well, now there may be no need to decide between the two if the latest decision emerging from Washington, USA is anything to go by.
If you have a Will in place, it is important to review this on a regular basis to ensure it is up to date with your personal and financial circumstances.
People often think of reviewing matters such as the amount of money to be left to nieces or nephews or who should, in fact, inherit the family heirlooms. However, most don't think to review who they have appointed as their Executor in their Will. So why is this important?
An
Brain Injury Awareness Week 2019 is here - #ActionForBrainInjuryWeek #ABIWeek, culminating with #HatsForHeadway on Friday 24th May.
As is often the case, family members can face numerous difficulties as the result of a loved one succumbing to a brain injury - if they no longer have capacity to make decisions for themselves and if the family is not aware of what steps they need to take. Difficulties can arise in relation to medical or financial decisions that need to be made and no-one having
No-one likes to contemplate their own death or think of the death of a loved one. It is however an important topic of conversation to have with your family and friends and is encouraged as part of the Dying Matters Awareness Week. Doing this at an early stage allows you to have an unpressured conversation at a time that suits you and not at a time of ill health or crisis.
Conversations of this nature are a prompt to discuss your affairs and the
Once appointed by the Court to act as Financial Guardian there are certain administrative responsibilities which you will have to fulfill, these are detailed below. By taking on this role you are accepting this responsibility and it is therefore important that you consider if you have the time and ability to carry out the duties of a Financial Guardian.
The Sheriff may order that you obtain a Bond of Caution (usually within 4 weeks of your date of appointment). A Bond of
Many families wish to ensure that their family are provided for in the future. They have worked hard to be able to own their property and do not want their estate to be exhausted by paying care costs. Beware, there are many things to consider before gifting your property to avoid care costs.
Since 2002 deferred payment schemes have been available for care home residents however, many are unaware of their availability.
Care home residents who have insufficient income and capital (excluding the value of their property) to meet care home fees may enter into an agreement with their local authority to defer payment of part of their contribution towards care costs. They can settle these sums with the local authority at a later date when their home is eventually sold. A deferred payment agreement is an agreement
In September 2001, the Scottish Government introduced legislation to provide free personal care for those who were assessed as requiring it and were over 65. 'Personal care' means care which relates to day to day tasks and the needs of the person cared for (for example, washing, eating etc.).
1st April 2019 sees the introduction of 'Frank's Law', which will broaden the availability of free personal care to those under 65. This means that those living with early onset dementia, Parkinson's Disease,
It's Lent - the Christian period of time for reflection and preparation before the celebrations of Easter. With that in mind, what better time than to focus your mind on your affairs and having everything in order so that you and your family have a secure and comfortable future. This can be sorted with both a Will and Power of Attorney.
Your Will is probably one of the most important documents that you can make. It is vital if you wish to protect
No one likes to contemplate their own death or the death of a loved one. The importance of preparing a will is often overlooked or postponed or those who do have wills overlook the importance of reviewing their wills.
In preparing a will you provide written instructions on how your estate should be distributed on death and who should do so. Often the Executor will be the person who will make funeral arrangements. This need not be the case. Should you wish, you can make
If you have undergone gender reassignment surgery, you will be dealing with an overwhelming number of changes and will be starting to create your new identity. To make things easier, the Registers of Scotland (ROS) will change your title deeds to reflect your new identity. They will not only change your name as owner, they will also change your name as borrower in respect of any securities registered over your title. Please note however you will also have to inform your security lender of the
You have made a Will. Congratulations! This puts you ahead of the almost 60% of the Scottish population who do not have Wills in place.
In your Will, you have appointed an Executor; the person charged with implementing the terms of your Will and carrying out their legal duties as your Executor. However, in light of a case involving a man who murdered his mum, but because he is named as the Executor in her Will he can attend to administering her estate, some people
Many people choose a loft conversion as a means of obtaining more space without having to move home. This blog provides some advice on what you should be thinking about before making the decision to extend and how to ensure that the loft conversion is safe and legal.
If you live in a house this shouldn't be an issue but for top floor flats (including upper cottage flats) you should check the title deeds (or ask
'It's in the diary.' 'Let's catch up over coffee.' These are typical phrases which are uttered when we hear the words - 'business development'. What are we really looking to gain from having countless lunches and coffees with contacts we may not have seen or heard from in a while?
In these uncertain times, businesses can no longer afford to cherry pick where their business comes from. Work may be referred continuously from one reliable source or may come from the man in
There are many people who are providing care for loved ones in their own homes. The Scottish Government recently circulated an updated Carers' charter explaining the rights of adult carers or young carers in Scotland. This came on the back of the introduction of new legislation, The Carers (Scotland) Act 2016, which came into effect from 1 April 2018. What are your rights as a carer in Scotland?
The legislation was introduced to enhance the rights of carers in Scotland to help improve their
You have been appointed as a Continuing (financial) Attorney and now need to trigger the powers granted to you.
The day is finally here; you've worked hard, made years of payments and now you've got that all-important letter from the bank/lender confirming that you have fully paid off your mortgage. Pop open the champagne, enjoy the moment and have a think about how you are going to spend that extra money each month. But wait, you notice on the letter there's something about discharging the mortgage, what does this mean?
The concept is fairly simple, when you use a mortgage to buy a property
As most people are aware, the government set up a very generous scheme at the end of 2015 known as Help to Buy ISAs where young people who had never owned a house before (first-time buyers) could save for a house and be given a free 25% bonus on top of their savings when they became able to purchase of a property. A Lifetime ISA, or 'LISA' as they're regularly referred to, offers a very similar deal but with considerable differences which you should
Land and Buildings Transaction Tax (LBTT) replaced Stamp Duty Land Tax on the purchase of property in Scotland on the 1st April 2015. Since then there have been many updates, amendments and guidance notes issued. The purpose of this blog is to provide an update on the current threshold and tax banding for LBTT, the new First Time Buyers Relief and the increase to the Additional Dwelling Supplement (ADS).
LBTT Threshold and Banding
The threshold for paying LBTT on the purchase of residential
Why consider an equity release mortgage?
The average person can expect to live for around 20 years following retirement and for many people equity release is an attractive option as it offers either a lump sum or a regular income which could be used in a number of ways:
'But I've not spoken to my children in 10 years!!' Whether or not you choose to make a Will, there exists what are known as 'Legal Rights' in Scotland. Some argue that if they have chosen to make a Will and expressed a clear wish that their children are not to inherit any of their estate, then why should their children, who they, perhaps, have not seen nor spoken to for many years, be able to lay any claim against their estate? The theory behind
When it comes to Wills, most people are focused purely on how the estate will be distributed. Questions such as 'have I given enough to my grandchildren?' and 'will my spouse be adequately provided for?' are, obviously, very important matters to consider. However, the appointment of an Executor is just as important.
Who should I appoint?
Your Executor is responsible for dealing with the administration of your estate and ensuring that the terms of your Will are carried out, often with the assistance of a
One of the benefits of making a Will is that you can narrate your funeral instructions and let your family know your specific wishes for your funeral. However, as you will not be here to know if these wishes have been carried out, is it really worth stipulating what should happen to your body and at your funeral service?
The inclusion of funeral instructions in your Will is a guide to your Executors and family and can be as straightforward or as complicated as you
The above Order came into effect from Saturday 30 June 2018. Subject to certain conditions, First-Time Buyer Relief is now available to first-time buyers in Scotland. The relief applies to qualifying transactions where the contract is entered into on or after 9 February 2018 and the date of entry is on or after 30 June 2018. It is therefore not available for any transactions with an effective date prior to 30 June 2018.
Taking the decision to move, or helping a loved one move, into a care home can be a stressful time. It is important that the financial implications are fully understood.
The average rate for residential care in Scotland is £639 per week (£33,228 per annum) and for nursing care is £852 per week (£44,304 per annum). Understandably, when faced with these figures people worry about how they will fund a move to care or nursing accommodation should this be required in the future.
Where the
We are often asked - what is a Living Will?
It is:
I think you should set up a trust; this will protect your assets. Sounds great! But what is a trust? What can you put in to a trust? And will there be any charges associated with the trust?
What is a Trust?
A trust is when one person is given property to hold for the benefit of another. Dependent upon the size and complexity of your estate, particularly if your assets are over the threshold for Inheritance Tax (currently £325,000), you may wish to consider
An English Local Authority has recently been criticised for refusing to pay an elderly woman's residential care fees when it learned that she made regular cash gifts to her family after moving into a care home. They believed this to be a deliberate deprivation of capital.
What is a deprivation of capital?
The Local Authority requires a financial assessment be completed for anyone moving to residential accommodation. It follows the Charging for Residential Accommodation Guidelines for Local Authorities. The guidelines state what can be considered
Is the digital era making our lives much simpler and easier? Well, not necessarily when it comes to completing your Will. When we think about making our Will, very few of us realise that digital assets can be included.
With the emergence of Bitcoin for instance, it may be that this type of cryptocurrency will become more popular over time. Also, with more and more online banking and share portfolios being held online, it is important to give adequate information to your Executors to enable
Life can be taxing at times, no more so than on death. So it is important to consider the potential inheritance tax implications which can arise upon your death. Do you know your Inheritance Tax Gift Exemptions?
When you die, Inheritance Tax may be payable on your estate. Each person has a Nil Rate Band of £325,000, meaning that any assets up to this value are charged at 0% inheritance tax. Anything above this value has a charge to Inheritance Tax of 40% unless exempt.
Married
Most people know that there are a number of differences between the Law of England (and Wales) in comparison to the Law of Scotland. We are often asked by people who have made a Will in England and now live in Scotland; "is my English Will still valid in Scotland?" The simple answer is generally "yes". There is no reason why a Will which is valid in England will not also be valid in Scotland. However, on your death, it may need validated by a
5 Tips for a First Time Buyer
Buying your first home is an emotional experience - it can be joyous, stressful and frustrating, amongst other things. Our goal is to limit, if not eliminate, the negative emotions and make the experience something you WANT to remember. Here are a few, sometimes overlooked, tips for first time home buyers.
Do you know the importance of having a Will?
If not, why not? Do the reasons include:
Let's address these possible concerns:
Don't know what a Will actually does
A Will is a document which takes effect on your death , identifies who is to have responsibility for administering your estate (the executor ) and ensures that what
I'm perfectly capable! I can manage, don't worry. I don't need a Power of Attorney.
None of us likes to think that there will come a time when we cannot manage our own affairs. Despite reminders from our families, it is not always easy to admit that we may require a little help.
Contrary to popular belief, should you lose capacity for any reason and be unable to attend to your own affairs, your family cannot simply step in and take control for you. There
It's ok, don't worry. My wife will get everything.
These words are uttered more than any other when someone dies without a Will. It is a common misconception that should you die without having made a Will that your spouse will receive your entire estate. Indeed, it doesn't matter if you have only been married for one year, ten years or thirty years, your spouse does not automatically inherit your whole estate. Surprisingly, your spouse is not the only person who can inherit your estate
With one in four of us likely to need care in our old age, the issue of paying for care home fees has never been more common. Exploring options to reduce capital/savings/assets has become popular, including placing property into trust. Is this an attractive way of avoiding care fees? What is deliberate deprivation of capital?
For example, take a lady who is 78 who has mobility issues and is struggling with day-to-day living. After much deliberation, it is decided that a care home is the most
Buying from a builder is appealing to home buyers for a number of reasons:
In Scotland having Japanese knotweed growing on land belonging to you is not of itself against the law. That said, there is now legislation regarding the spread of Japanese knotweed and requirements on a heritable proprietor not to allow this non-native species to spread. Penalties for ignoring such legislation are significant with fines running into thousands of pounds and with the ultimate sanction of imprisonment.
When considering the sanctions and penalties it is important to note where Japanese knotweed is growing. There is separate legislation
As reported by BBC News, Audit Scotland issued a new report on the implementation of Self Directed Support in Scotland.
Self Directed Support (SDS) has been available since 2014. It was introduced to offer people more choice on how their support is delivered and managed.
There are four options available:
A retired senior judge in England issued a warning yesterday over the risks of granting a power of attorney via an article on the BBC news website and on BBC Radio 2.
Our advice to anyone holding a Power of Attorney in Scotland, or considering granting one. Don't panic!
The Scottish system of granting a Power of Attorney differs from England.
Most Powers of Attorney in Scotland are drafted by solicitors following specific instructions from their client, offering an additional level of protection. Solicitors
An article from The Telegraph details plans to revolutionise the "outdated" system for having a Will made and suggests allowing new ways to provide Will instructions for your death such as notes, voicemail's, emails and texts.
The current system
A valid Will is signed on all pages by the testator (the person who's Will it is) before an adult independent witness who signs on the last page only. Changes to a Will can be made by either doing a new will or something called a
It has now been over a year since the introduction of the Additional Dwelling Supplement which came into force on 1 April 2016.
The Additional Dwelling Supplement (ADS) is an additional amount of Land and Buildings Transaction Tax (LBTT). The current rate of ADS is 3% on the full purchase price and applies to purchases of:-
This week is dementia awareness week in Scotland, culminating on Friday with Alzheimer Scotland's flagship annual conference in Edinburgh, where T C Young will be in attendance. There has also been additional press coverage in the last few weeks from politicians as they gear up for the General Election. Rather than kissing babies, it is the older generation who are being thrust into the spotlight as the various parties deliver their strategies for dealing with an aging population.
We pride ourselves on having a number
Our earlier blog on Wills spoke of the need for getting professional advice and not relying on a DIY Will. There is a document, however, which we would actively encourage you to DIY and that is a Letter of Wishes. A Letter of Wishes is often stored alongside Wills, and can act as a guide to your executors and trustees as to how the instructions in your Will should be implemented.
They are unlikely to include legal jargon, and will convey the feelings of
