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As our committee members arrived to set up for this month’s meeting, they encountered witches and ghoulies and other fancy dressed youngsters leaving the Hall having enjoyed a Halloween Ball. Contrary to some beliefs we did not arrive on our broomsticks!
Our speaker, Ann Orr, waited patiently whilst we sorted ourselves out, heard from our President what was on offer in the coming weeks as well as the presentation of a birthday posy. Ann is a Legal Consultant and Solicitor working for Co-Op Estate Planning and has been dealing with Wills, Trusts and Probate since 1990, so has plenty of experience. She was here to ask, “Are you Legally Prepared”? This could have been a very dry talk, but Ann had a lovely deep, resonating voice which was easy to hear as she explained the intricacies of Wills, Powers of Attorney and dealing with Inheritance Tax. She suggested that we should check that our Wills were up-to-date and reviewed regularly just to ensure that everyone named in them, were themselves still alive. More importantly ensure that the firm of Solicitors holding the Will is still in existence! Nobody really likes talking about these difficult subjects, but it is important to be prepared.
Ann gave us different scenarios which illustrated how not getting round to these tasks could result in disastrous outcomes, especially when co-habiting couples and blended families are involved. She spoke about the danger of dying intestate, even if you are married, the Inland Revenue will apply a formula, without any regard for personal circumstances. The surviving spouse does not get to keep the whole estate unless it is below a certain value.
Also very important are Powers of Attorney. There are two types of these, one deals with finance and the other with welfare (making decisions on health care). It came as a surprise to our members, to hear that if these don’t exist and a person becomes incapable of managing their own financial affairs, it is not only their assets that are frozen, but also those in joint names. An application must then be made to the Court of Protection which can be a long and expensive process. It a good idea to name more than one attorney and preferably younger members of the family. Members were also warned against naming sons or daughters who live abroad as it wouldn’t be as easy to for them to handle affairs from a long distance and in different time zones.
If there isn’t a Power of Attorney in existence regarding welfare, then it may well be that a surviving spouse/partner or adult children are not able to make decisions on treatment or even the location and type of residential care that may be required. These situations would then be managed by third parties.
Then there is Inheritance Tax, and the allowance varies according to circumstances. Single people with no children only get the basic allowance – all assets above the nil rate band of £325,000 become liable to IHT. IHT allowances can be passed on to a surviving spouse and it only becomes payable on their death. Additional allowances can be claimed if a person has children. It is important to get this right as the prevailing rate is 40%.
Ann was happy to answer questions from members. It soon became apparent that not everyone present was indeed legally prepared. Many signed up for a personal consultation with Ann to deal with their own particular circumstances.
Having said all this, Ann did make us laugh. She said that if a woman died first, then it was quite likely that the surviving husband/partner would soon find themselves overwhelmed with offerings of home-made cakes and the like by single women in the community. Apparently, a man is only likely to be on his own for about 18 months when widowed, but she has known situations where this was much less. In one instance a new partner was found before the funeral had occurred. Hopefully, that is extreme!
Our next meeting is on 28 November, and we will be making Beeswax Candles, just in time for Christmas, with Brian Graham. Each member should bring £4 for the cost of materials. Once again there are other opportunities to meet us, particularly our Coffee Mornings. The next one is on 14 November – see below for further information. You will also see below that members can meet up on other occasions, as they did this month, to discuss their most recent book choice as well as walk and lunch. This month we are also off to London.
DIARY DATES:
06 November – Book Club : Dobbies Garden Centre 10.30 a.m
09 November – Walking Group
14 November – Coffee Morning : Sports Pavilion at 10.30 a.m. (Refreshments £2) Non-members welcome
21 November – Outing to London : Drop-off at V&A Museum (free day) then tour of Christmas Lights
28 November – Monthly Meeting : 7.30 p.m. in the Village Hall
Abbotts Ann Players
