LPA Reforms given royal ascent

The details of the bill are summarised here in this press release,

https://www.gov.uk/government/news/step-forward-to-online-lasting-power-of-attorneys

but we felt the LinkedIn summary by the OPG gave a superb summary of what will change:

However, it should be noted that not all in the legal community have welcomed the bill wholeheartedly. Some question if the new online system will indeed resolve the current long delays and have legitimate concerns that the new way may exclude those without internet access or proper advice. Others feel the protections added have not gone far enough.

https://todayswillsandprobate.co.uk/digital-transformation-of-lpas-sparks-concerns-among-lawyers/

When is too early to begin estate planning for business?

It is always fabulous to see or hear a solicitor talk about comprehensive early planning as a financial planner would. Ian Bond, a friend to SIFA Pro and speaker on how the legal and financial planning professions should work together at the 2020 SIFA conference, has written an excellent article on the above subject. Well worth a read.

https://www.insidermedia.com/blogs/midlands/mids-succession-planning-for-family-businesses-when-is-it-too-early-to-begin-estate-planning

The Ripple Effect

A large proportion of clients that come to us for estate planning have one specific concern and goal they wish to achieve; to reduce their inheritance tax liability.

More and more estates are creeping into inheritance tax territory with a hefty 40% tax looming over a net estate after deductions, exemptions, and reliefs. Yes, it’s crucial to protect a client’s wealth. But remember, estate planners aren’t magicians. When you restructure an estate to lower inheritance tax, it often creates a ripple effect in other areas. For some, restructuring might affect income, and asset control, and trigger other tax liabilities. There’s no simple fix, no one-size-fits-all solution in estate planning. It’s often complex and intricate and requires qualified, experienced professionals to educate a client on the implications and consequences of these actions. It’s a delicate balance of priorities and cost vs. benefit and it is vital that a solicitor and a financial planner work together to ensure all aspects are considered

I recently came across an excellent graphic that sums up the complications involved in estate planning for clients, which in turn screams out the need for a joined-up collaborative approach. Different professionals advising the same client without such an approach can only increase the likelihood of an adverse ‘Ripple Effect’.