Equity Release FAQs

Equity release schemes are aimed at those 55 or over looking to free up some equity in their property, while continuing to live there and without making monthly repayments. Needless to say, there are both benefits and drawbacks to these types of schemes, where answers to the following frequently asked questions will help homeowners to make an informed decision.

What is equity release and how does this work?

A growing number of people in later life are finding themselves ‘property rich but cash poor’, where equity release is the process by which a homeowner can extract some or all of the wealth tied up in their property by way of regular payments or a cash lump sum.

There are two main types of equity release schemes:

• a lifetime mortgage: where a loan is secured against the property, but ownership retained, and the loan repaid from the homeowner’s estate once they die. The interest on the loan can either be repaid at regular intervals, or rolled up and repaid on redemption of the loan;

• a home reversion plan: where part or all of the property is purchased by the scheme provider, but the seller will be permitted to live in the property rent-free under a lifetime lease. When the property is sold, typically after the seller dies or moves into long-term care, the provider will be entitled to their percentage share by way of repayment.

What are the benefits of equity release schemes?

There are various benefits to equity release, although the advantages involved will depend on the nature of the scheme. In broad terms, equity release schemes will:

• give you tax-free cash, with the freedom to spend this on anything you want

• allow you and others to benefit from your wealth during your lifetime

• enable you to continue living in your current home, without the upheaval of moving.

The ‘no-negative equity guarantee’ offered by lenders approved by the Equity Release Council also means that the amount of money borrowed against the value of your home, plus any rolled-up interest, can never go above the value of that property.

What are the drawbacks of equity release schemes?

There are various drawbacks with equity release, although again the disadvantages will depend on the nature of the scheme. However, in broad terms, equity release schemes will:

• be unlikely to pay you the full market value for your home, where you will receive far less money, comparatively, than you would from selling the property on the open market

• diminish the value of your estate, where this will reduce the amount of inheritance that your beneficiaries would otherwise receive after you die

• potentially reduce your right to means-tested benefits, including funding for social care.

Which equity release scheme is right for me?

For each of the two equity release schemes, there are various options available, where it’s important that both the immediate and future needs of the homeowner are matched with the right type of scheme. The importance of seeking expert advice from a qualified professional cannot be underestimated, so that you fully understand the long-term implications, with sufficient knowledge of the risks, rewards and legal obligations under your preferred scheme.

Legal disclaimer

The matters contained herein are intended to be for general information purposes only. This blog does not constitute legal advice, nor is it a complete or authoritative statement of the law in England and Wales and should not be treated as such. Whilst every effort is made to ensure that the information is correct, no warranty, express or implied, is given as to its’ accuracy, and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should always be sought.

Key considerations when buying a repossessed property

Buying a repossessed property can provide investors and developers with an excellent opportunity to purchase an apartment or house at a significantly discounted price — in some cases, by as much as 30% less than their market value. Repossessed properties can also provide first-time buyers with a chance to get onto the property ladder. However, there are a number of key considerations that must be taken into account. This is because the process of buying a repossessed house is very different than through traditional methods.

Below we look at three of the most important factors that you will need to consider before buying a repossessed property.

#Key consideration 1 — the risk of being gazumped

Even though a lender has the right to repossess a property in circumstances where the borrower had been unable to meet their mortgage repayments, the lender is under a legal obligation to obtain the best possible price to cover any outstanding debt. This means that when an offer is made by a prospective buyer, the lender, or estate agent on their behalf, will usually publish a 'notice of offer’ in the local press inviting higher bids. In consequence, there is no certainty that your initial offer will be sufficient to secure the property, exposing you to the possibility of being gazumped and losing the property altogether, or being forced to increase your offer. Even then, the property will remain on the open market until completion.

#Key consideration 2 — the unavailability of replies to enquiries

As the repossessed property is being sold by or on behalf of the lender, who will have no personal knowledge of the property, they will be unlikely to be able to provide answers to many of the standard enquiries raised during the conveyancing process. This can include detail of any disputes with or complaints about neighbours, any notices or proposals that may affect the property, any rights and informal arrangements with neighbouring properties, or any alterations or changes to the property and whether consents and approvals were sought. This means that you must carry out a thorough visit to the property to satisfy yourself of such matters, and raise any queries that you may have with either your solicitor and/or surveyor.

#Key consideration 3 — the need to act very quickly

When buying a property under normal circumstances, timescales are relatively relaxed, typically to be agreed between the parties. In contrast, when buying a repossessed property, whether through an estate agent or auctioneers, time is of the essence. This is because the lender will want to recoup their money as quickly as possible. When buying a property at auction, once the hammer goes down, contracts are treated as exchanged. This means that you must pay a 10% deposit or reservation fee on the day, with the remaining balance usually payable within a period of 14 to 28 days. Even when buying a property through an estate agent, exchange of contracts is generally requested within 28 days of an offer being accepted, so you must have your finances in place so that you are able to proceed immediately.

There are a whole host of other factors to take into account when buying a repossessed property, where expert advice should always be sought first.

Legal disclaimer

The matters contained herein are intended to be for general information purposes only. This blog does not constitute legal advice, nor is it a complete or authoritative statement of the law in England and Wales and should not be treated as such. Whilst every effort is made to ensure that the information is correct, no warranty, express or implied, is given as to its’ accuracy, and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should always be sought.

How to repay a help-to-buy equity loan

If you took advantage of the government’s help-to-buy scheme to put you on the property ladder, you may now be looking to pay off the equity loan that was used towards the cost of buying your property. This could be because you’re selling up, have cash savings or are looking to remortgage. Below we look at some of the factors involved in how to repay an equity loan, including how much this will cost, the process to be followed and if a solicitor will be needed.

How much will it cost to pay off an equity loan?

The total amount of help-to-buy equity loan that you will need to repay is not fixed to the amount originally borrowed, but instead calculated based on the market value of your property at the time that you choose to repay and the equity loan percentage amount.

This means that the repayment amount can be lower or higher than the amount originally borrowed. If you are selling, the repayment figure will be calculated based on either the approved current market value or the agreed sale price, whichever is the higher. The amount you will need to repay also includes interest, fees and any outstanding payments.

What is the process to repay an equity loan?

The process to repay an equity loan will depend, in part, on your method of repayment. As your equity loan will be secured as a second mortgage over the title deeds to your property, you may be looking to increase your borrowing on your first mortgage and use this to pay off some or all of your equity loan. If you want to repay just part of your equity loan through remortgaging, you’ll first need to get permission from the administrator for Homes England to change your mortgage provider and increase your borrowing on your existing mortgage.

Provided permission has been sought from Homes England, where applicable, or where you are using the proceeds of sale or cash funds to repay your equity loan, you will then need to instruct an RICS-approved surveyor to inspect your property and provide a valuation report to confirm its current value. You will be responsible for the surveyor’s costs in this regard.

Once you have the valuation report, this will need to be submitted to Target Services Ltd, together with their loan redemption form and administration fee, in order to obtain a redemption figure. Target is a private company appointed by Homes England to administer the repayment of equity loans under the help-to-buy scheme. The valuation report will be valid for a period of 3 months from the date of issue. If repayment does not take place within this timescale, you will need to arrange and fund the cost of an additional desktop valuation.

Is a solicitor needed to deal with the repayment process?

Given that your equity loan will be secured against your property, a specific legal process will need to be followed to ensure its removal once you have paid this off in full. This means that you will need to instruct a solicitor to carry out the legal conveyancing to repay the loan, including checking with Land Registry that the equity charge has been removed.

The legal fees for your solicitor dealing with the transaction will vary depending on the nature of your financing for the repayment of the help-to-buy equity loan.

Legal disclaimer

The matters contained herein are intended to be for general information purposes only. This blog does not constitute legal advice, nor is it a complete or authoritative statement of the law in England and Wales and should not be treated as such. Whilst every effort is made to ensure that the information is correct, no warranty, express or implied, is given as to its’ accuracy, and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should always be sought.

Does cryptocurrency go into the matrimonial pot on divorce?

When couples cannot agree on the division of marital assets on divorce, or even where agreement has been reached but the court is required to approve a draft consent order, consideration must be given as to the nature and value of any assets owned or available to either party. In this way, a court order can be made that’s fair in all the circumstances.

In most cases, this will include all physical assets, such as the marital home, as well as any savings or investments, such as stocks and shares, and occupational pensions. But what about digital assets, such as cryptocurrency? Should this also form part of the matrimonial pot?

What is cryptocurrency?

Cryptocurrency is a form of digital currency based on blockchain technology and secured by cryptography. Bitcoin is the best-known cryptocurrency, and the one for which blockchain technology was invented. It’s essentially a medium of exchange, such as the pound sterling, but is virtual and uses encryption techniques, both to control the creation of monetary units and to verify the transfer of funds. Cryptocurrencies don't have a central issuing or regulating authority, instead using a decentralised system to record transactions and issue new units.

Can cryptocurrency be taken into account?

When making a financial remedy order on divorce, the court is under a duty to have regard to all the circumstances of the case, taking into account a wide range of different factors. These factors include the income, earning capacity, property and any other financial resources which each party to the marriage has or is likely to have in the foreseeable future.

As with any other form of money or investment, this means that cryptocurrency is an asset, albeit a digital asset, that the court will almost certainly put into the matrimonial pot when assessing the parties’ financial worth and considering what’s fair in all the circumstances.

That said, whether or not cryptocurrency will form part of the overall settlement ordered or approved by the court will ultimately depend on the totality of resources available to either party — to be considered in the context of their respective financial needs, obligations and responsibilities. The welfare of any children under 18 will be an overriding factor here, where relevant, although other factors can include the age of the parties, the length of the marriage and the standard of living enjoyed by the family before the breakdown of the marriage.

Does cryptocurrency have to be disclosed?

Given the encrypted nature of cryptocurrency, it can be tempting for any party in possession of this type of digital asset to decide not to disclose to the court either its existence or its true value. There may even be cases where a spouse may attempt to dissipate more easily traceable physical assets through investment in cryptocurrency in order to defeat their spouse’s claim.

However, when asking the court to make a financial remedy order on divorce, or even when seeking the court’s approval of a draft settlement agreement, the parties are under an ongoing duty to provide full and frank disclosure, including disclosure of any digital assets.

In cases of non-disclosure, where this comes to light, the court has the power to set aside transactions and order that such assets be added back to the matrimonial pot for distribution upon settlement. If an order has already been made, the court can also overturn such order, with significant costs and other financial consequences for the non-disclosing party.

Legal disclaimer

The matters contained herein are intended to be for general information purposes only. This blog does not constitute legal advice, nor is it a complete or authoritative statement of the law in England and Wales and should not be treated as such. Whilst every effort is made to ensure that the information is correct, no warranty, express or implied, is given as to its’ accuracy, and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should always be sought.

Remember to register non-taxable trusts

As part of the UK’s implementation of the 5th Money Laundering Directive (5MLD), and so as to give greater transparency as to the beneficial ownership of trust assets, HMRC has extended the requirement for trust registration to most non-taxable UK trusts. However, with only a small fraction of the anticipated numbers added to the register since it opened to these additional types of trusts last year, trustees should be urgently turning their attention to the impending deadline date and the potential penalties for any failure to register.

What are the new rules for registering trusts?

Set up by HMRC in 2017, the Trust Registration Service (TRS) is a digital platform which trustees must use to fulfil their trust registration obligations. The main purpose of the TRS is to reduce the risk of trusts being used as a vehicle for money laundering, where the register includes details of all parties to the trust, including the settlor, trustees and beneficiaries.

Prior to 6 October 2020, there was no requirement to register trusts with no tax liability, where only taxable UK trusts paying certain UK taxes needed to be placed on the TRS register. However, under the new rules, most express trusts in existence since 6 October 2020 must be registered, even those with no tax liability, unless they are specifically excluded. The registration requirement also extends to some non-UK trusts, including those with land or property in the UK, or at least one UK-resident trustee and a UK business relationship.

What is the registration deadline date?

Even though the new rules in relation to the registration of trusts were introduced on 6 October 2020, it took some time for HMRC to upgrade the existing TRS to take account of the new changes. Accordingly, the TRS only opened on 1 September 2021 for registrations which were brought into scope of the trust register by the requirements of the 5MLD.

However, with a deadline date of 1 September 2022, this has still given trustees a total of 12 months to register a non-taxable express trust, although it has been reported that only a small fraction of the estimated one million trusts affected by the rule changes have been registered to date. This means that for the thousands of trusts yet to be registered, trustees will have to act quickly to meet the deadline date and avoid any financial penalties. This includes any registrable trusts in existence on or after 6 October 2020, even if they have since ceased.

Where a trust is set up or otherwise becomes registrable in the 90 days immediately before 1 September 2022, the trust must instead be registered within 90 days of its creation date. Equally, non-taxable trusts created after 1 September 2022 must register within 90 days.

If you have either created a trust or are the trustee of a trust which has not yet been registered with HMRC, you are strongly advised to consider the guidance on HMRC’s website and, where necessary, to seek expert advice to check if you are caught by the new registration rules.

For assistance in registration a trust please call 01524 386500. 

Legal disclaimer

The matters contained herein are intended to be for general information purposes only. This blog does not constitute legal advice, nor is it a complete or authoritative statement of the law in England and Wales and should not be treated as such. Whilst every effort is made to ensure that the information is correct, no warranty, either express or implied, is given as to its’ accuracy, and no liability is accepted for any errors or omissions. Before acting on any of the information contained herein, expert advice should be sought.

How are trust assets treated on divorce?

Following a break-up, trusts are one way in which the economically stronger spouse may seek to ring-fence property to protect this from going into the matrimonial pot on divorce. Solely owned assets may have even been placed in trust prior to getting married, in addition to or in lieu of a pre-nuptial agreement. However, it’s a common misconception that trusts assets cannot be taken into account by the court when assessing the parties’ financial worth, and considering what’s fair in all the circumstances when it comes to the division of marital assets.

Below we look at how any trust interest will be treated on divorce, where separated spouses are unable to agree on a financial settlement and the court is asked to intervene. 

What are trusts and trust assets?

There are various different types of trusts that can contain a whole host of trust assets. In broad terms, a trust can contain both money and property given to it by a ‘settlor’.  These assets will then be legally owned by appointed ‘trustees’ who hold the assets for the benefit of those specified within the terms of the trust, known as the ‘beneficiaries’.

For instance, a residential property placed in a lifetime trust may allow the beneficiary of that trust to reside in the property for the duration of their lifetime, or a beneficiary may benefit from interest on savings placed in a discretionary trust, albeit at the trustees’ discretion.

Trusts can be set up for various legitimate and non-marital reasons, including tax avoidance, to give third parties beneficial interests in property, to provide a discretionary income for a class or classes of beneficiaries, and estate planning for future generations. In some cases, trusts may also be set up specifically to protect the wealth of the settlor-spouse on divorce.

Will trust assets be ring-fenced on divorce?

When it comes to financial remedy proceedings, the court may be called upon to look beyond the complexities of any trust mechanism to examine the reality of the financial situation.

The fact that trustees have legal ownership of any trust assets, or control over the way in which these are managed, doesn’t automatically mean that any benefit derived from the trust should be disregarded when it comes to the matrimonial pot. This is the case, even if the trust was put in place prior to getting married, or otherwise set up with a genuine purpose. There may also be allegations over whether or not a trust has been solely created as a means of defeating the financial claim of the economically weaker spouse in anticipation of divorce.

Either way, under section 25 of the Matrimonial Causes Act 1973, the court has a duty to consider all financial resources available to both parties, either now or in the foreseeable future, including any trust interest. The court also has wide and varied powers to make orders that achieve a fair outcome in each case, including awarding the non-beneficiary party a greater share of non-trust assets. This means that trust assets may be treated as either income or capital that can be brought into account, regardless of the reasons behind the trust.

Needless to say, the court is likely to take an even more robust approach when bringing trust assets into account if it considers the trust to be a sham. It’s therefore vital that expert legal advice is sought prior to entering into a trust arrangement, either prior to getting married or following the breakdown of a marriage, or when pursuing or defending trust asset claims in the context of divorce and financial remedy proceedings.

Legal disclaimer

The matters contained herein are intended to be for general information purposes only. This blog does not constitute legal advice, nor is it a complete or authoritative statement of the law in England and Wales and should not be treated as such. Whilst every effort is made to ensure that the information is correct, no warranty, express or implied, is given as to its’ accuracy, and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should always be sought.

Taking the stress out of financial disclosure

 When a couple separates, it’s important for each party to fully understand the financial worth of their ex before entering into any negotiations as to the division of marital or partnership assets. So as to provide transparency, and to enable the court to make or approve an order that’s fair in all the circumstances, the parties are required to provide ‘financial disclosure’. Below we look at how this process works and how to minimise the stress involved.

What is financial disclosure?

Financial disclosure is the process where both parties to a marriage or civil partnership are required to exchange financial information in relation to their respective incomes, property and any other financial resources which each has the benefit of. This includes any assets held on both a joint and individual basis, together with valuations, as well as assets acquired prior to, during and even after the marriage or civil partnership has irretrievably broken down.

In some cases, both spouses or civil partners may be fully aware of each other’s financial worth, including any solely-owned assets — whilst in others, one party may have no knowledge whatsoever that particular assets exist, let alone how much these are worth.

How is financial disclosure made?

The parties are legally required to provide full and frank disclosure of their financial and other relevant circumstances, in a clear and accurate way, otherwise risk having an order set aside and being ordered to pay any associated costs. Moreover, if a party is found to have been deliberately untruthful, criminal proceedings may be brought against them for fraud.

This means that, if an agreement is reached the parties have to complete and sign a Statement of information form. However, if a financial court application is made, the parties will be required to complete, and sign with a statement of truth, what’s known as Form E. This is a lengthy and detailed legal document that can potentially run into hundreds of pages long, once all documentary evidence in support has been attached. Needless to say, this process can be daunting, and extremely stressful, when an individual is already having to deal with the emotional fallout from the breakdown of their relationship.

How can the stress be taken out of financial disclosure?

Even though completing Form E is no easy task, the following three top tips should be followed to help ease the pressure when going through this process:

• Read Form E carefully: your solicitor can help guide you through this process, although Form E itself sets out exactly what’s required so that you know what to expect. By printing off a copy of Form E, you can make one of these your draft 'to do' list. Once you’ve got all the necessary information, you can print a fresh copy to complete and forward to your solicitor.

• Be organised: by starting your ‘to do’ list early, gathering the relevant documents to accompany Form E, you will minimise the stress of meeting any deadline. A great deal of the information required will need to be requested from third parties, such as home and pension valuations, where it can take weeks or even months  to receive this information. It’s important that you give yourself plenty of time to prepare what you’ll be required to disclose.

• Be thorough: the parties are required to be completely up front about all the assets they own, even if their ex has no knowledge of these. Equally, it’s important not to make any accidental omissions, where there may be significant costs and other consequences for failing to disclose an asset or source of income, even if this was a genuine mistake.

Legal disclaimer 

The matters contained herein are intended to be for general information purposes only. This blog does not constitute legal advice, nor is it a complete or authoritative statement of the law in England and Wales and should not be treated as such. Whilst every effort is made to ensure that the information is correct, no warranty, express or implied, is given as to its’ accuracy, and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should always be sought.

Using a Will Trust to protect a vulnerable loved one

Planning for your family’s future once you’ve gone can feel daunting. For those of you with a disabled child or grandchild, or other vulnerable loved one, this feeling may be amplified, not least because leaving a substantial inheritance could create all sorts of practical problems.

In particular, a loved one may not have the mental capacity to manage their own finances or live independently. You may also have concerns, regardless of their age, of exposing a loved one to a risk of exploitation — after all, a sizeable legacy could put them in an even more vulnerable position when it comes to opportunists. Equally, being bequeathed money or assets could impact their eligibility for means-tested benefits, leaving a loved one no better off.

By including a Trust in your Will, you can make financial provision for a disabled relative when you’re no longer around, safe in the knowledge that the money will be managed by Trustees for the benefit of that individual during their lifetime. In this way, your loved one will not be forced to look after their own finances, or be exposed to any risk of exploitation from unscrupulous characters, and nor will any inheritance affect their benefits.

What is a Will Trust?

A Will Trust is a legal arrangement, contained within a Last Will and Testament, that places any legacy left to a loved one in the hands of appointed Trustees. Upon your death, the Trustees will be tasked with managing that inheritance on behalf of the beneficiary, for example, by ensuring that your loved ones’ care needs are adequately met.

You can choose who to appoint as Trustees, including family members or even professionals. You can also leave a Letter of Wishes, setting out your preferences on how the Trust assets should be used, helping to guide the Trustees' decisions once the Will Trust comes into effect.

What are the risks of not having a Will Trust?

For some of us, the idea of putting in place a formal trust arrangement to financially protect a vulnerable loved one may seem wholly unnecessary, especially where there are, for example, siblings of a disabled child or grandchild that can be entrusted with their legacy. However, this is a risky strategy, even if you implicitly trust a surviving relative to honour your dying wishes. This is because an outright gift to another family member means that this legally belongs to them, where unforeseen circumstances may arise, such as debts, divorce or death.

For instance, if you have two adult daughters — one with a mental disability and one without — you may choose to leave your entire estate to the mentally able daughter, provided they promise to use half of that inheritance to financially support their sister. However, if the daughter without the disability accumulates debts or gets divorced, this will expose everything she owns, including the money intended for your disabled daughter, to creditors and divorce proceedings. If that daughter then dies a few years later, her estate may be distributed equally between her children, leaving your disabled daughter with nothing.

Why is a Will Trust beneficial?

A Will Trust offers a number of benefits for the parents or grandparents of disabled children, or those otherwise looking to make provision for a vulnerable loved one, including:

•   the beneficiary will be able to benefit from the assets at the Trustees' discretion, without having to personally manage their own finances

•   the beneficiary won’t own the assets contained within the Trust, so they cannot be coerced into using the money for other purposes and it won’t affect their means-tested benefits

•   the Trust assets aren’t owned by anyone else in a personal capacity, so cannot form part of a person’s estate for the purposes of debt, divorce or death.

A Will Trust can be used to effectively ring-fence the inheritance earmarked for a vulnerable loved one. However, specialist advice advice should always be sought, ensuring that any trust mechanism contained within your Will is tailored to your family’s needs after you’re gone.

Legal disclaimer

The matters contained herein are intended to be for general information purposes only. This blog does not constitute legal advice, nor is it a complete or authoritative statement of the law in England and Wales and should not be treated as such. Whilst every effort is made to ensure that the information is correct, no warranty, express or implied, is given as to its’ accuracy, and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should always be sought.

Making a gift and minimising inheritance tax

Gifting money, property or possessions to a loved one during your lifetime can be such a great feeling, although the joy of giving can feel even greater when you also factor in the potential tax benefits on death. In fact, lifetime gifts can be one of the best ways to minimise the amount of inheritance tax that your estate will be liable to pay when you die. But what are the exemptions when it comes to lifetime gifts, and how can you make the most of any tax relief?

What are the inheritance tax rules relating to gifts?

Some lifetime gifts are automatically exempt from inheritance tax, whereas others are known as potentially exempt transfers (PETs) to which a 7-year rule applies.

Gifts that won't count towards the value of your estate include an annual exemption of up to £3,000 during every tax year, as well as the small gift exemption, where you can make an unlimited number of small gifts of up to £250 per person. Wedding or civil ceremony gifts, and payments toward the living costs of a child or elderly relative may also be exempt.

In contrast, PETs are gifts that are not automatically exempt under the rules, but will not be chargeable to inheritance tax if you survive for a period of more than 7 years from when the gift was made. This means that if a gift is made more than 7 years prior to the date of death, regardless of the nature or size of the gift, no inheritance tax will be payable. Accordingly, once you’ve given someone a gift, the inheritance tax clock will start to tick.

In most lifetime gift scenarios, this essentially means that you’ll have to survive for 7 years or more before your gift becomes 100% inheritance tax-free, although taper relief may still be available where the total value of any gifts made within the 7-year period prior to death exceeds the relevant tax-free threshold. Under the taper relief rules, inheritance tax is payable on a sliding scale, from the full rate of 40% for gifts made less than 3 years prior to the date of death, decreasing to as little as 8% for gifts made within 6-7 years.

How can the tax relief from lifetime gifts be maximised?

There are various ways in which the relief from inheritance tax can be maximised. In particular, giving someone a gift early in your lifetime increases the likelihood of you surviving for 7 years thereafter, and that gift becoming inheritance tax-free. You’ll also have the pleasure of seeing a loved one benefit from your generosity during your lifetime.

To understand more about the ways in which you can maximise the relief applicable to lifetime gifts, in this way minimising the inheritance payable by your estate, expert advice should be sought as soon as possible. The sooner you start to plan ahead, and make lifetime gifts, the faster the inheritance tax clock will start to tick in your favour.

Legal disclaimer

The matters contained herein are intended to be for general information purposes only. This blog does not constitute legal advice, nor is it a complete or authoritative statement of the law in England and Wales and should not be treated as such. Whilst every effort is made to ensure that the information is correct, no warranty, express or implied, is given as to its’ accuracy, and no liability is accepted for any error or omission. Before acting on any of the information contained herein, expert legal advice should always be sought.

BSG Raise £2500 in Honour of Andie Brown

BSG Solicitors have raised £2,500 for St John’s Hospice in honour of their late Partner Andie Brown, who sadly passed away in 2021. 

Andie would have been 55 on 1st March and as she was always the life and soul of the party, so the firm organised a bake sale at their offices to mark her birthday with all manner of delicious treats produced by staff and friends of the firm. Their aim was to raise money for St John’s Hospice who took such good care of Andie. The bake sale was so well supported it lasted a whole week, just the kind of party Andie loved. Scott & Wilkinson accountants based in Lancaster also supported the fundraising by running their own bake sale at their offices.

Rebecca Lauder, Partner at BSG Solicitors commented: “We’d like to say a huge thank you to everyone who contributed to the bake sale, those who baked and the many friends, family and local businesses who donated. As a firm we are devastated to have lost Andie who was more like a 'work mum' or sister to all of us. Since Andie’s passing the volume of messages we have received from previous clients has reflected the huge and positive impact she had on the lives of many people.”

It costs over £5.1 million a year to run the hospice with around a third of this amount provided by local NHS funding. The remaining two thirds must be raised through events, community donations, grants and legacies.

Stuart Nelson, relationship manager at St John’s Hospice added: “This is a wonderful gesture on behalf of Andie and we would like to thank all who helped. We are reliant on the support of the many wonderful businesses in Lancashire and South Cumbria who run events in support of the hospice. BSG Solicitors have been involved with our fundraising activity over many years and we look forward to continuing our relationship in the future.”