Planning for Old Age
The Government may have announced that for the first time in 100 years life expectancy may be about to fall beacuse of rising obesity and its related health problems, but many of us are living longer and longer. Although this is good news, it does mean some people need to plan for a retirement spanning ages 65 - 95 or more. Many older people would like to pass as much of their wealth on to their relatives when they die and may need to plan for this.
John Kirkhope, head of our Wills, Trusts and Probate Department says "Inheritance Tax (IHT) has to be paid at the rate of 40% on that part of someone's property worth over £255,000 when they die. There are exemptions - spouses can inherit free of tax, although unmarried partners cannot and there is some relief for business assets. However for many people IHT will bite. For example an old lady leaves a house worth £555,000. £120,000 would go in IHT. We can help you plan legally to minimise the tax. Sometimes trusts can be set up or property given away more than seven years before a person dies in which case the tax is avoided.
Sometimes an elderly relative can no longer look after their own affairs and the family need to set up an enduring power of attorney so that others can act on their behalf and deal with their finances for their benefit. We can advise on the legal implications of this as well, of course, as ensuring a valid will is drawn up which protects assets as much as possible from tax charges.
Finally it is sometimes necessary for poeple to go into a care home. The costs of this can be large and again it can be wise to take some legal advice on the best way to structure arrangements."
For further information contact John Kirkhope on 0117 9290451 or e-mail jkirkhope@metcalfes.co.uk
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