UNQUALIFIED UNINSURED UNACCEPTABLE
The BBC Panorama programme, which aired on Monday 9th August, highlighted the risks in using a will writing service. Many people are under the false impression that a ‘will writer’ is a solicitor, but unlike a solicitor they do not have to undergo any training or have insurance, and they are not regulated by any organisation which ensures that they conduct their activities in the interests of the consumer and provide some form of redress if things go wrong. If they go out of business, there is little that can be done – sometimes the will cannot be found, even where charges have been made for storing it.
Andrew Poole’s wife Suzanne used a will writer, but the will failed to include any provision for him, leaving the entire estate in trust for his stepdaughters. Caroline Bielanska, Chief Executive of Solicitors for the Elderly, appeared on the programme, and expressed concern that a spouse had not been provided for. The will writers appeared to have failed to advise on his right to bring a claim against the estate for inadequate provision. She said, ‘a specialist solicitor would have asked why a spouse was left out, kept a detailed record of those reasons and advised of the high risk that the will would be challenged’. Solicitors are in the business of giving legal advice, taking into account the client’s domestic and financial circumstances – it does not appear that Suzanne Poole received any such advice’.
The lack of regulation has enabled many will writers to adopt high pressure selling techniques which were illustrated in the programme, often offering wills for a low or discounted fee, and then recommending themselves to be appointed as executors, and selling other services without full advice, such as transferring the home into a trust in an attempt to avoid care fees. Terms and conditions can be poorly worded and difficult to understand. In secret filming undertaken by the BBC for the programme, an elderly couple was not told the details of charges which were confusingly set out in writing but then taken away by the will writer.
The fear of solicitors’ costs prompts some people to use will writers. At Morrisons we set out in writing the basis of our charges at the very beginning, and in many cases wills are prepared for a fixed fee with free storage of wills and other documents.
Contrary to the advertising material of some will writers, Morrisons’ team of lawyers are specialists in writing wills and administering estates when a person has died. We do undertake home visits to prepare wills and we do not charge on a percentage basis for administering a person’s estate. All fees in respect of administration of estates are charged on a time spent basis, so you are only charged for work that has actually been done.
The Panorama programme highlights the potential for getting it wrong without full legal advice and the need for proper regulation of will writers. It can be very costly to put things right after you have gone, with your family left in disarray when they have to pick up the pieces, as problems generally only come to light when you have died.
If you would like Morrisons to provide an executor service and administer your estate when you have died you can be safe in the knowledge that there will be no hidden costs. Your family will receive a complete estate account showing all the funds that have been received and paid out during the course of the administration.
Our team of specialist lawyers are members of Solicitors for the Elderly, The Society of Trust & Estate Practitioners and the Law Society Probate Section.
For further information please contact:
Rebecca Fisher
Wimbledon office
rebecca.fisher@morrlaw.com
020 8971 1037
Jane Forbat
Redhill office
jane.forbat@morrlaw.com
01737 854522
Jessica Greenhall
Woking office
jessica.greenhall@morrlaw.com
01483 215010
Tuesday, August 10, 2010
Wednesday, July 14, 2010
Sharp increase in employment claims
The Tribunals Service Annual Statistics Report for 1 April 2009 to 31 March 2010 has just been published. Key findings are as follows:
- The number of claims submitted to the employment tribunal was at the highest ever level showing a 56% increase from the figures in 2008/9 to 236,100
- Only 19% of these claims made it to a full hearing with 31% being settled through ACAS
- 32% of claims have been recorded as being withdrawn, however, it is likely that a significant number of these were settled but without the assistance of ACAS
- The number of single claims accepted are also at their highest ever levels with a 14% increase
- There was a 17% increase in the number of tribunal claims associated with unfair dismissal, breach of contract and redundancy
- The number of cases disposed of rose 22% on the number in 2008/9 however the size of the case load has increased due to the significant increase in receipts
- Compliance with the Tribunals Service’s Primary Performance Indicators, which is largely based upon waiting times from receipt to disposal, has declined for both employment tribunals and the employment appeal tribunal. The number of claims in which the first hearing took place within 26 weeks of the claims being received fell from 74% to just 65% indicating that the service is struggling to cope.
As the statistics show, times are getting more and more litigious for employers. It is therefore ever more important for employers to ensure that they are adequately protected against employment claims. Key measures to protect your business include:
- Comprehensive and up to date contracts of employment and employment policies/procedures.
- If you have discipline and/or grievance issues ensure you comply with the ACAS Code of Practice (reissued April 2009).
- Train managers and supervisors to deal with employment issues e.g. discrimination. Most problems can be nipped in the bud if caught early enough and dealt with effectively.
- Take legal advice at an early stage.
For further information please contact David Seals, Head of the Employment Department on 01737 854 573 or at david.seals@morrlaw.com.
Tuesday, June 22, 2010
THE EMERGENCY BUDGET 2010
Britain’s youngest ever Chancellor of the Exchequer George Osborne, aged 39, stood up to present the coalition Government’s Budget at just after 12.30pm.
In recent months we have all become very familiar with the words “deficit”, “spending”, “cuts” and “borrowing”. Everyone expected this to be a painful Budget with the coalition Government suggesting that there would be a combination of spending cuts and tax rises. A rise in Capital Gains Tax (CGT) has been the subject of much media speculation in recent weeks with many experts convinced that Value Added Tax (VAT) would also be increased.
There were sweeping changes to the Welfare System. Most notably from April 2013 those claiming or seeking to apply for Disability Living Allowance will be required to have a medical assessment.
After details were released to the press yesterday evening, it was confirmed that the personal allowance for basic rate taxpayers is to rise from £6,745 to £7,745 for 2011/12. The basic rate limit will be reduced in due course to offset any benefit to higher rate taxpayers.
VAT is to rise from 17.5% to 20% with effect from 4th January 2011. Zero rated items such as basic foodstuffs, children’s clothing and books will remain exempt from VAT for the current Parliament. Exempt items (e.g. education and health) and 5% items (domestic fuel and power) are unaffected. This increase amounts to a 1/7 rise in tax.
Other than VAT, the most significant announcement in the Budget is the rise in CGT. There is currently a flat rate of 18% for individuals, trustees and personal representatives of deceased persons. With effect from midnight tonight, where an individual’s total taxable income and gains after all allowable deductions (including losses, the income tax personal allowance and capital gains tax annual exemption) are less than the upper limit of basic rate income, the rate will remain at 18%. For gains and any part of gains above that, CGT will be chargeable at 28%. The rate of CGT applicable to trustees and personal representatives will be 28%. The annual exemption for CGT will remain at £10,100 for 2010/11. Interestingly, the Chancellor has not included any form of taper relief or indexation as many had expected.
Although the rate of CGT for higher rate taxpayers will rise by 10% (a 55% increase in the tax payable) this is not as high as many had feared. The Chancellor also announced that the rate for those qualifying for Entrepreneurs’ Relief will remain at 10% and that the lifetime limit on gains qualifying for the relief will increase from £2 million to £5 million with effect from midnight tonight.
Stamp Duty Land Tax (SDLT) remains unchanged. The current threshold for SDLT will stay at £125,000 for 2010/11. There has been no change to the SDLT charge introduced by the last Government of 5% on purchases of property over £1million, which will come into effect from 6th April 2011.
As many suspected, Inheritance Tax did not feature in this coalition Government’s Budget. The current threshold for inheritance tax is £325,000, which was frozen by Alistair Darling until 2014/15 in his last Budget. The transferable nil-rate band rules also remain unchanged where on a person’s death their unused nil-rate band can be transferred to their surviving spouse or civil partner for the purposes of the charge to tax on the death of the survivor on or after 9 October 2007.
For many, the big surprise announcement was the four year reduction in corporation tax rates from the current rate of 28%. This will be cut to 27% in 2011/2 and thereafter 1% every year for the next three years, bringing the rate down to 24% in 2014/15. To stimulate investment in small business the small profits tax rate will also be cut, to 20% with effect from April next year.
The Furnished Holiday Lettings (FHL) rules will not be withdrawn from 6 April 2010.
Such businesses can currently choose whether to be taxed under FHL rules or under normal rules for property businesses. These arrangements will continue to apply for the tax year 2010-11.
There has been no increase on alcohol, tobacco or fuel, but these will be reviewed later in the year. The planned increase in duty on cider to 10% above inflation will be scrapped from the end of June.
If you would like to review your estate planning or require advice on how the Budget may have affected you please contact:
David Kingham
Redhill
01737 854529
dck@morrlaw.com
Rebecca Fisher
Wimbledon
020 8971 1037
rebecca.fisher@morrlaw.com
Jessica Greenhall
Woking
01483 215010
jessica.greenhall@morrlaw.com
In recent months we have all become very familiar with the words “deficit”, “spending”, “cuts” and “borrowing”. Everyone expected this to be a painful Budget with the coalition Government suggesting that there would be a combination of spending cuts and tax rises. A rise in Capital Gains Tax (CGT) has been the subject of much media speculation in recent weeks with many experts convinced that Value Added Tax (VAT) would also be increased.
There were sweeping changes to the Welfare System. Most notably from April 2013 those claiming or seeking to apply for Disability Living Allowance will be required to have a medical assessment.
After details were released to the press yesterday evening, it was confirmed that the personal allowance for basic rate taxpayers is to rise from £6,745 to £7,745 for 2011/12. The basic rate limit will be reduced in due course to offset any benefit to higher rate taxpayers.
VAT is to rise from 17.5% to 20% with effect from 4th January 2011. Zero rated items such as basic foodstuffs, children’s clothing and books will remain exempt from VAT for the current Parliament. Exempt items (e.g. education and health) and 5% items (domestic fuel and power) are unaffected. This increase amounts to a 1/7 rise in tax.
Other than VAT, the most significant announcement in the Budget is the rise in CGT. There is currently a flat rate of 18% for individuals, trustees and personal representatives of deceased persons. With effect from midnight tonight, where an individual’s total taxable income and gains after all allowable deductions (including losses, the income tax personal allowance and capital gains tax annual exemption) are less than the upper limit of basic rate income, the rate will remain at 18%. For gains and any part of gains above that, CGT will be chargeable at 28%. The rate of CGT applicable to trustees and personal representatives will be 28%. The annual exemption for CGT will remain at £10,100 for 2010/11. Interestingly, the Chancellor has not included any form of taper relief or indexation as many had expected.
Although the rate of CGT for higher rate taxpayers will rise by 10% (a 55% increase in the tax payable) this is not as high as many had feared. The Chancellor also announced that the rate for those qualifying for Entrepreneurs’ Relief will remain at 10% and that the lifetime limit on gains qualifying for the relief will increase from £2 million to £5 million with effect from midnight tonight.
Stamp Duty Land Tax (SDLT) remains unchanged. The current threshold for SDLT will stay at £125,000 for 2010/11. There has been no change to the SDLT charge introduced by the last Government of 5% on purchases of property over £1million, which will come into effect from 6th April 2011.
As many suspected, Inheritance Tax did not feature in this coalition Government’s Budget. The current threshold for inheritance tax is £325,000, which was frozen by Alistair Darling until 2014/15 in his last Budget. The transferable nil-rate band rules also remain unchanged where on a person’s death their unused nil-rate band can be transferred to their surviving spouse or civil partner for the purposes of the charge to tax on the death of the survivor on or after 9 October 2007.
For many, the big surprise announcement was the four year reduction in corporation tax rates from the current rate of 28%. This will be cut to 27% in 2011/2 and thereafter 1% every year for the next three years, bringing the rate down to 24% in 2014/15. To stimulate investment in small business the small profits tax rate will also be cut, to 20% with effect from April next year.
The Furnished Holiday Lettings (FHL) rules will not be withdrawn from 6 April 2010.
Such businesses can currently choose whether to be taxed under FHL rules or under normal rules for property businesses. These arrangements will continue to apply for the tax year 2010-11.
There has been no increase on alcohol, tobacco or fuel, but these will be reviewed later in the year. The planned increase in duty on cider to 10% above inflation will be scrapped from the end of June.
If you would like to review your estate planning or require advice on how the Budget may have affected you please contact:
David Kingham
Redhill
01737 854529
dck@morrlaw.com
Rebecca Fisher
Wimbledon
020 8971 1037
rebecca.fisher@morrlaw.com
Jessica Greenhall
Woking
01483 215010
jessica.greenhall@morrlaw.com
Thursday, May 20, 2010
Surrey law firm welcomes HIPS suspension
Surrey law firm welcomes HIPS suspension
After days of speculation, the legal requirement for sellers to provide Home Information Packs (HIPS) has today been formally suspended.
Jeremy Jupp, Head of Residential Conveyancing, says: “We’re delighted with this news. Most people in the property sector agree that HIPS were an unnecessary expense for people trying to sell their house, adding up to £350 to their bill.
“HIPS were introduced to supposedly speed up the house buying process but did the complete opposite. In harsh economic times the cost of HIPS was an obstacle for many. Moreover, searches are now returned very quickly unlike the days of old. So in reality, HIPS added little if any benefit to the process.
“The requirement to have HIPS in place before marketing a property was not an ideal situation for individuals or estate agents in any case. Furthermore, the personal search which was required was not acceptable to lenders and to most solicitors, which made a mockery of the whole process.”
Due to EU law, vendors will still need to provide an official energy efficiency assessment of their property - an Energy Performance Certificate (EPC).
Housing minister Grant Shapps comments: “Today the new Government is ensuring that home information packs are history. This is a great example of how we are determined to get straight down to work and cut pointless red tape which is strangling the market.”
For further information contact Jeremy at jj@morrlaw.com
After days of speculation, the legal requirement for sellers to provide Home Information Packs (HIPS) has today been formally suspended.
Jeremy Jupp, Head of Residential Conveyancing, says: “We’re delighted with this news. Most people in the property sector agree that HIPS were an unnecessary expense for people trying to sell their house, adding up to £350 to their bill.
“HIPS were introduced to supposedly speed up the house buying process but did the complete opposite. In harsh economic times the cost of HIPS was an obstacle for many. Moreover, searches are now returned very quickly unlike the days of old. So in reality, HIPS added little if any benefit to the process.
“The requirement to have HIPS in place before marketing a property was not an ideal situation for individuals or estate agents in any case. Furthermore, the personal search which was required was not acceptable to lenders and to most solicitors, which made a mockery of the whole process.”
Due to EU law, vendors will still need to provide an official energy efficiency assessment of their property - an Energy Performance Certificate (EPC).
Housing minister Grant Shapps comments: “Today the new Government is ensuring that home information packs are history. This is a great example of how we are determined to get straight down to work and cut pointless red tape which is strangling the market.”
For further information contact Jeremy at jj@morrlaw.com
Monday, February 15, 2010
South London Business Members Networking
Paul Harvey, Managing Partner will be attending the South London Business Members Networking Event on the 25th February. At this event Paul Harvey will be speaking about Morrisons.
Details of the event are as follows:-
Date: 25th February 2010
Venue: Jurys Inn, Croydon
Time: 5:30pm – 10pm
Refreshments: Wine & Canapés
Details of the event are as follows:-
Date: 25th February 2010
Venue: Jurys Inn, Croydon
Time: 5:30pm – 10pm
Refreshments: Wine & Canapés
New Starters
Given the challenging economic conditions, we are pleased to be bucking the trend and expanding the business. We have three exciting new hires to announce:
Chris Groves
Chris has a BA (Hons) degree in Economics from the University of Birmingham and a post graduate diploma in law from Nottingham Law School.
Chris joined Morrisons from City firm Reynolds Porter Chamberlain. He specialises in all types of property transactions including freeholds, office blocks, health clinics, and industrial and manufacturing units.
For further details please click here to view Chris’ profile
Peter Savage
Peter graduated from Leicester University and joined us from the London Office of top 40 firm, Cobbetts.
Peter specialises in mergers and acquisitions; public company advice and flotations, asset finance and secured lending transactions, insolvency and restructuring and commercial legal advice.
Peter has expertise in the recruitment industry and has written articles for various recruitment industry publications.
For further details please click here to view Peter’s profile
Mark Stewart
Mark joined Morrisons from the Royal Institute of Chartered Surveyors and previously worked with Surrey practice, Howell-Jones where he completed his training. He specialises in all types of company commercial work.
For further details please click here to view Mark’s profile
Chris Groves
Chris has a BA (Hons) degree in Economics from the University of Birmingham and a post graduate diploma in law from Nottingham Law School.
Chris joined Morrisons from City firm Reynolds Porter Chamberlain. He specialises in all types of property transactions including freeholds, office blocks, health clinics, and industrial and manufacturing units.
For further details please click here to view Chris’ profile
Peter Savage
Peter graduated from Leicester University and joined us from the London Office of top 40 firm, Cobbetts.
Peter specialises in mergers and acquisitions; public company advice and flotations, asset finance and secured lending transactions, insolvency and restructuring and commercial legal advice.
Peter has expertise in the recruitment industry and has written articles for various recruitment industry publications.
For further details please click here to view Peter’s profile
Mark Stewart
Mark joined Morrisons from the Royal Institute of Chartered Surveyors and previously worked with Surrey practice, Howell-Jones where he completed his training. He specialises in all types of company commercial work.
For further details please click here to view Mark’s profile
Monday, February 1, 2010
South London Business – the Lambeth Property Event
Robert Satiro, Partner and Nirav Patel, Assistant Solicitor will be giving a presentation on “tips to Tenants in Recessionary times” at the South London Business show on the 4th February 2010.
This event will take place at the Park Plaza,Waterloo between 17.30-19.30. There will be 3 topic areas running and the format of the event is:
17.30-18.00 - Registration, Networking and opening of the event
18.00-18.30 - Workshop 1 - Negotiations of leases/tenants right
18.30-19.00 - Workshop 2 - Planning
19.00-19.30 - Workshop 3 - Practicalities of relocating
19.30 - Close
This event will take place at the Park Plaza,Waterloo between 17.30-19.30. There will be 3 topic areas running and the format of the event is:
17.30-18.00 - Registration, Networking and opening of the event
18.00-18.30 - Workshop 1 - Negotiations of leases/tenants right
18.30-19.00 - Workshop 2 - Planning
19.00-19.30 - Workshop 3 - Practicalities of relocating
19.30 - Close
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