SPIRALLING CARE
COSTS NEED A PLAN FOR MITIGATION By Stuart Maher,
Solicitor and director, Watson Ramsbottom
Little support is provided and most are expected to meet the costs of their care in full, which can be as high as £1,400 per week for basic care.
If you have capital of £23,250 or more, you will need to pay for your care in full.
With assets below this, you will receive support from the local authority towards the cost of care, but this is incremental based on the level of your capital.
With the average monthly cost of living in a residential care home in the UK being £5,064 and a nursing home £6,112, the costs are significant and without careful planning even those who have built up significant assets over their lives can see these dwindle quite rapidly.
Our specialist lawyers can assess and plan for this eventuality, providing no-nonsense advice specific to your circumstances.
There are many opportunities at different stages in life to reduce potential liability to residential care fees in the future, and such an assessment forms part of our unique Wills and Estate Planning Report service.
If you are in any way concerned about the impact the costs of future care fees could have on your assets, I cannot stress enough how important it is to seek professional advice.
Some advisors will only offer particular solutions to your estate planning needs, but as each family’s circumstances are different a ‘one-size fits all’ approach is never appropriate.
Furthermore, it is imperative you or your family seek immediate advice on entering into residential care to ensure the fees you are asked to pay are appropriate, and that the resident’s affairs are managed in the most cost-effective manner.
TAXING TIMES AHEAD FOR
INHERITANCE ISSUES By Farida Isaji, Legal director, Napthens
The 2024 autumn budget introduced significant changes to inheritance tax (IHT) regulations, marking the most substantial tax adjustments since 1993.
These reforms necessitate a thorough review of estate planning strategies for individuals potentially affected by IHT. Here are the key elements to consider:
Defined contribution pensions subject to IHT. From April 2027 unused funds in defined contribution (DC) pensions will be included in the deceased’s estate for IHT purposes.
Reforms to business and agricultural reliefs. Business relief (BR) and agricultural relief (AR) will be capped from April 2026. The first £1m of qualifying assets will be eligible for 100 per cent relief, with amounts exceeding this receiving 50 per cent relief, resulting in an effective IHT rate of 20 per cent on the excess.
Changes to AIM shares exemption. Previously, Alternative Investment Market (AIM) shares held for at least two years were fully exempt from IHT. Under the new rules, AIM shares will be subject to a 20 per cent IHT rate without benefiting from the £1m tax-free threshold applicable to BPR and APR.
Extension of IHT threshold freeze. The nil-rate band (£325,000) and residence nil-rate band (£175,000) will remain frozen until April 2030, extending the previous freeze set until 2028.
This prolonged freeze may result in more estates becoming liable for IHT due to asset appreciation over time. Given the changes, people are advised to consult with advisors to reassess and adjust their estate planning strategies accordingly.
We have a team of STEP qualified experts who can help you and your family avoid any unnecessary financial deductions from a loved one’s estate.
Private Client Expert legal services for you and your business
From helping safeguard family, business and financial interests, to acting as executors of an estate, our expertise covers all aspects of wills, estate planning and estate administration.
Our comprehensive services include:
• Agricultural and Business Inheritance Tax relief advice • Creation of asset protection trusts • Directors’ protection scheme • Fixed fee probate • Inheritance tax planning • Lasting powers of attorney • Lay deputyship Court of Protection applications • Preparation of wills • Probate and estate administration • Trust administration • Trust creation • Will trusts
Let our team take your worries away 01772 888 444
www.napthens.co.uk privateclient.la@
napthens.co.uk
Worried about care fees? We’ve #GotYourBack
At Watson Ramsbottom, we can assist and guide you through the process making it as painless and worry free as possible, and at an affordable price.
Get in touch with us today to recieve your free Wills & Estate planning report!
Contact us TODAY!
01254 67 22 22
enquiries@WatsonRamsbottom.com
www.WatsonRamsbottom.com
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WILLS AND PROBATE
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