Clarke Willmott Packages and Products For the St. James s Place Partnership Will packages Estate administration and implementation Simple Wills 1 Full estate administration services 5 Codicils 1 Grant only (IHT 205) 5 Asset Protection Wills 1 Grant only (IHT 400) 6 Next Generation Protection Wills 1 Deeds of Variation 6 Family Protection Wills 2 Nil rate band discretionary trust options 6 Flexible Will for a single parent 2 (first death) Exempt Asset trust bolt on 2 Will trust options (second death) 7 Property Discount bolt on 2 Transferable nil rate band claim pack 7 Second Marriage Wills 2 Individual services Ultimate Flexible Will for couples 3 LPA Property and Financial Affairs 7 Business Succession plan 3 LPA Health and Welfare 8 Lifetime planning Severance of joint property 8 Normal expenditure out of income 4 Severance of investments 8 Property Discount plan Trusts 4 Contact information Holiday Home Trusts UK and overseas property 4 Contacts 9 Helping children onto the property ladder 5 Offices 9 Valuable Asset Leaseback plan 5 Family Investment companies 5
Will packages Package Name Simple Wills Preparing a Will ensures that an individual s estate passes to the person or persons of their choice and allows him or her to choose who will administer their estate and to make decisions about matters such as the identity of guardians for minor children. The Will making process also allows inheritance tax planning and asset protection options to be considered. Why make a Will? NB: Please note that no IHT planning is included in this Simple Wills package. Codicils Codicils may be used to amend a previously executed Will. The fee shown on our Fee Schedule is for minor amendments only. Where the codicil is to make significant changes to the Will a fee quote can be provided, although in this situation it may be advisable to make a new Will. These Wills include an immediate post-death interest trust (IPDI) on the death of the first of a couple, usually for the benefit of the surviving spouse or civil partner. Asset Protection Wills The IPDI provides the survivor with an income, and/or the right to occupy property, whilst ensuring asset protection during the lifetime of the survivor by ring-fencing the assets of the first to die against nursing home fees and re-marriage. Asset Protection Wills are particularly useful if either or both of the couple have been married previously which may mean that the couple have different beneficiaries. Life interest trusts Asset Protection Wills retain the possibility of transferable nil-rate band. using the Next Generation Protection Wills Next Generation Protection Wills provide an absolute gift of the estate to the surviving spouse or civil partner. Following the second death the estate passes by way of discretionary trust or immediate post-death interest trust to children or grandchildren, providing asset protection on divorce and/or bankruptcy and against the beneficiary s own actions. Will trusts for children 1
Family Protection Wills Wills providing an immediate post-death interest on the first death for the surviving spouse or civil partner. This provides them with an income or right to occupy property whilst ringfencing the assets of the first to die, to protect against nursing home fees, remarriage or bankruptcy. Following the second death the estate passes by way of discretionary trust or immediate post-death interest trust to children or grandchildren, providing further asset protection on divorce and/or bankruptcy. Life interest trusts Discretionary trusts Will trusts for children Flexible Will for a single parent Wills which transfer the estate by way of discretionary trust or immediate post-death interest trust to children or grandchildren, providing protection on divorce and/or bankruptcy. Life interest trusts Discretionary trusts Exempt Asset trust bolt on To maximize the benefit of agricultural or business property relief on relevant assets. Can be added to the following packages: Asset Protection Wills, Next Generation Protection Wills or Family Protection Wills. Exempt assets Discretionary Will trusts Property Discount bolt on These are provisions which leave a percentage of a jointly owned property to a discretionary trust on the first death, allowing the property to be valued at a discount on the second death. Can be added to the following packages: Asset Protection Wills, Next Generation Protection Wills or Family Protection Wills. Property fragmentation (Wills) Second Marriage Wills These Wills can be used where either partner to a second marriage was married previously to a first partner who died. These Wills comprise a nil rate band discretionary trust and an immediate post-death interest trust on the first death. This approach secures the nil rate band for the benefit of the family of the first to die, allowing any transferable nil rate band that is available from the former, now deceased, spouse to be claimed. This approach also provides inheritance tax planning between the current spouses and asset protection for the benefit of their respective families. Discretionary trusts Life interest trusts 2
Product Guide Ultimate Flexible Will for couples Wills which include a nil rate band discretionary trust on the first death, and which also place exempt assets into trust. An immediate post-death interest, subject to an over-riding power of appointment, is given to the surviving spouse with the residue passing to the children on the second death either through trusts or outright. Life interest trusts in Wills Discretionary trusts Property fragmentation (Wills) Exempt assets Discretionary Will trusts Will trusts for children The Business Succession plan consists of Wills incorporating a nil rate band discretionary trust, an appropriation of agricultural/business assets and an immediate post-death interest trust for the surviving spouse/civil partner. It also provides a cross-option agreement to maintain any agricultural and/or business property relief that is available. Business Succession plan This product allows assets to pass free from inheritance tax on the first death and provides potential for further inheritance tax planning by the surviving spouse. Linked with life assurance, the surviving spouse/civil partner purchases the business and/or agricultural assets from the Will trust of the first spouse to die. This means that after two years the assets will also be relieved from inheritance tax on the death of the surviving spouse/civil partner. Business succession planning A review of an existing partnership or shareholders agreement will also be undertaken. If a new or revised agreement is needed a fee quote will be provided for this work. 3
Lifetime planning Package Name Normal expenditure out of income The normal expenditure out of income rules allow individuals whose income exceeds the funds they need to continue their current lifestyle to give away that excess income in an inheritance tax efficient manner without the need to survive seven years. Gifts must be made on a regular basis and as part of the individual s normal expenditure. Such gifts can either be made outright to individuals or onto trust for the benefit of one or more beneficiaries. This package includes a trust (if required). Inheritance tax: making lifetime gifts of your surplus income This allows a property owner to transfer part of their property to a trust during their lifetime. No IHT is payable on the share given to the trust if the donor Property Discount Trusts plan survives seven years and the retained share may benefit from a 10-15% discount in its value. Rent is payable to the trust for the continued occupation of the part of the property given to the trust. This is particularly suitable for single, divorced or widowed people who cannot benefit from the Property Discount bolt on to their Will. Suitable for those owning a holiday home in the UK or abroad. Holiday Home Trust UK property Holiday Home Trust overseas property The Product consists of a transfer of the holiday home into a trust or trusts. This transfers ownership of the property out of the owner s estate after seven years. Rent paid to the trust for continued occasional occupation of the property by the former owners is used to pay for maintenance and general upkeep of the property. The fees quoted in our Fee Schedule apply to UK registered freehold land only. Local advice is required in relation to any transfer of non-uk property, for which additional charges will be payable. - UK Properties - Properties Abroad 4
Helping children onto the property ladder Valuable Asset Leaseback plan This package provides a discretionary trust protective wrapper for a property purchased for children, or for funds to be used for such a purchase, protecting the property or the funds from claims by third parties such as those made by ex-spouses or on bankruptcy. Reduces the IHT payable on valuable personal assets works of art, antiques, vintage cars by transferring them out of the owner s estate while allowing him or her to retain use or enjoyment of the assets on payment of a fee. Helping children onto the property ladder Family Investment companies Family Investment Companies (FICs) are private limited or unlimited companies of which the directors and shareholders are all members of the same family. They are a vehicle for growing and holding family wealth which can be a flexible tax planning alternative to the more traditional structure of the family trust. This product contains the necessary advice and documentation to establish a FIC. Family investment companies and estate planning Estate administration and implementation Package Name Full estate administration This is our full estate administration service where we ascertain details of all the assets, inform the beneficiaries of their entitlement, apply for the Grant of Probate, pay the IHT due and liaise with HMRC over tax liabilities and distribute the estate. Estate administration Grant only (IHT 205) This is an alternative to our full estate administration service where assistance is only required in obtaining the Grant of Probate and completing the HMRC forms. If the estate is less than the inheritance tax nil rate band, or less than 1 million and the estate is left to the surviving spouse, then the shorter IHT 205 form is generally required by HMRC. This package comprises the completion of this form (completed from information supplied by the client) and the Oath for Executors/Administrators. 5
Grant only (IHT 400) This is an alternative to our Full estate administration service where assistance is only required in obtaining the Grant of Probate and completing the HMRC forms. If the estate is large or taxable or the amount of gifts, or trusts or foreign property is high, the longer form IHT 400 is required by HMRC. This package comprises the completion of IHT 400 and its associated schedules (completed from information supplied by the client) and the Oath for Executors/Administrators. Please note that this service is only available when the estate is not liable to IHT due to its value or the availability of spouse or charity exemptions. If the estate is taxable or contains assets which may qualify for business property relief or agricultural property relief then this option is not available, although we are happy to deal with the estate under our Full estate administration service. Deeds of Variation Within two years of death an inheritance under a Will or under the rules of intestacy can be varied for asset protection purposes, tax planning purposes or to achieve a more equitable division of the estate. The complexity of Deeds of Variation can vary dramatically depending on what is to be achieved and thus the fee payable will vary on the exact circumstances - see our Fees Schedule for more information. Deeds of Variation The fees in our Fees Schedule apply where instructions to effect the variation are received at least two months prior to the expiration of the two year variation period. Nil rate band discretionary trust options (first death) Many Wills contain nil rate band discretionary trusts and this package comprises a review of the Wills and the client s circumstances and, as an additional service, the implementation of the advice given whether that is to terminate the trust, use a loan and charge back arrangement or convert the trust to a life interest. Nil rate band discretionary trusts - information for beneficiaries Nil rate band discretionary Trust - information for executors 6
Will trust options (second death) Trusts created on the death of the first of a couple should be reviewed on the death of the survivor and advice sought as to whether the trust should continue, be brought to an end or should be restructured. This package comprises a review of the trusts, the circumstances of the beneficiaries and, as an additional service, the implementation of the advice given. Transferable nil rate band claim pack The preparation of the forms required to make an application for the transfer of any unused nil rate band of a deceased spouse following the death of the surviving spouse. Includes completion of the HM Revenue & Customs forms and the obtaining of documentary evidence in support of the claim The transferable nil rate band Individual services Package Name Lasting Powers of Attorney (Property and Financial Affairs with registration) LPAs allow clients to choose who they would want to act for them if they become incapable of acting for themselves. They enable the attorney(s) to make decisions regarding the management of money and assets, such as paying bills, managing bank accounts, collecting benefits and pensions, or buying and selling investments and/or property on behalf of the donor. This package includes registration of the LPA with the Office of the Public Guardian but does not include certification of the LPA, (which is charged according to time spent). Lasting powers of attorney Lasting Powers of Attorney (Health and welfare with registration) LPAs allow clients to choose who they would want to act for them if they become incapable of acting for themselves. These LPAs enable the attorney(s) to make decisions which impact upon the donor s medical condition and personal welfare such as where the donor lives, their day-to-day care or specific medical treatments. They can also allow the attorney(s) to give or refuse consent to life sustaining treatment on the donor s behalf. Lasting powers of attorney 7
This package includes registration of the LPA with the Office of the Public Guardian but does not include certification of the LPA, (which is charged according to time spent). Severance of joint property Severance of investments The legal documents necessary to convert the ownership of property from joint tenants to tenants in common for estate planning or other purposes to include registration at the Land Registry if necessary. The legal documents necessary to convert the ownership of investments from joint tenants to tenants in common for estate planning or other purposes. Joint ownership Joint ownership Copies of the product guides, information sheets and the Clarke Willmott Fee Schedule for the St James's Place Partnership can be found on the Clarke Willmott page on the SJP intranet, the SJP area of the CW website (http://clrkwlmt.uk/1r3kk6k) or can be provided on request by contacting your usual contact or emailing sjp@clarkewillmott.com. 8
Birmingham Fiona Debney 0345 209 1135 fiona.debney@clarkewillmott.com Bristol Anthony Fairweather 0345 209 1265 anthony.fairweather@clarkewillmott.com Jane Halton 0345 209 1417 jane.halton@clarkewillmott.com Bristol and Cardiff Carol Cummins 0345 209 1275 carol.cummins@clarkewillmott.com Bristol and London Liz Smithers 0345 209 1115 elizabeth.smithers@clarkewillmott.com Southampton Rupert Thompson 0345 209 1616 rupert.thompson@clarkewillmott.com Taunton David Maddock 0345 209 1205 david.maddock@clarkewillmott.com Birmingham office 138 Edmund Street, Birmingham B3 2ES Bristol office 1 Georges Square, Bath Street, Bristol BS1 6BA Cardiff office 2nd Floor, Emperor House, Scott Harbour, Pierhead Street, Cardiff CF10 4PH London office 1 Chancery Lane, London WC2A 1LF Manchester office 2nd Floor, 19 Spring Gardens, Manchester M2 1FB Southampton office Burlington House, Botleigh Grange Business Park, Hedge End, Southampton SO30 2AF Taunton office Blackbrook Gate, Blackbrook Park Avenue, Taunton TA1 2PG 9 clarkewillmott.com Great service... Great people... Clarke Willmott LLP is a limited liability partnership registered in England and Wales with registration number OC344818. It is authorised and regulated by the Solicitors Regulation Authority (SRA number 510689), whose rules can be found at http://www.sra.org.uk/handbook/. Its registered office is 138 Edmund Street, Birmingham, West Midlands, B3 2ES. Any reference to a partner is to a member of Clarke Willmott LLP or an employee or consultant who is a lawyer with equivalent standing and qualifications and is not a reference to a partner in a partnership.