Compass Legal Associates Presentation 11.01.2018

COMPASS LEGAL ASSOCIATES
TERESA JONES
01691 238701/07896 032419 or teresa@compassla.com
Turn to the person next to you and
discuss whether you’ve got any of
the following:
•Will
•Lasting Powers of Attorney
•Trusts
•Advanced Directive
•Funeral Plan
Why make a Will?
• A Will protects those that you love
• You can choose your Executors and Trustees
• You can ensure your Partner inherits
• You can appoint Guardians for your children
• Lifetime Finance and Tax planning
What makes a strong Will?
• Two Executors with plans for a Reserve Executor

• Named beneficiaries rather than classes of relatives
• Trust work within the Will to protect a range of assets
• Reserve beneficiaries appointed so the Will does not fail
• Memorandum of Wishes explaining the detail
COMPASS LEGAL ASSOCIATES TERESA JONES
Case Law - Ilott v Mitson [2015]
• Mother left her estate of £486,000 to
The Blue Cross
Royal Society for the Protection of Birds
Royal Society for the Prevention of Cruelty to Animals
£5,000 to the BBC Benevolent Fund
• First instance – daughter given £50,000
• Appeal upheld – daughter given £143,000 to buy her house plus £20,000 to
live on (not enough to affect her benefits)
• Claimed under the Inheritance (Provision for Family and Dependents) Act
1975 – the Will failed to make adequate financial provision for her
“Where there’s a Will, there’s a way”
1. If you die without a Will and have no relatives, where do
your assets go?
a. To the Government
b. To Charities
c. To Prince Charles and Prince Andrew
07896 032419 or teresa@compassla.com
Will Quiz Continued
2. What % is Inheritance Tax
in this country?
a. 25%
b. 28%
c. 40%

Will Quiz Continued
3. What currently is your “Nil Rate Band”?
a. £325,000 – the amount that is exempt from
Inheritance Tax
b. £0 – that is why it is called the Nil Rate Band
c. £650,000 – your exemption from Inheritance Tax if
you are married
Will Quiz Continued
4. If Guardians have not been appointed for children
under 18, where do they go if both parents pass away?
a. To Grandparents or nearest relatives
b. To Social Services
c. To close friends of the family
d. To the Court of Protection
Will Quiz Continued
5. What is Intestacy?
a. When you haven’t got any inheritance?
b. When you die without a Will?
c. When you are no good at tests?
Will Quiz Continued
6. What is the 7 year rule?
a. The length of time before your partner is
recognised in law
b. The amount of time before a transfer of
assets becomes tax free
c. The period of time before charges are due
on a Lifetime Trust
Assets and Liabilities Chart
Examples of Assets Examples of Liabilities
Properties Mortgages
Cars Loans
Investments Debts
Cash Credit Cards
Contact Teresa Jones on 07896 032419 or 01691 238701 or teresa@compassla.com

The Beauty of Trusts
• Rooted in history – knights’ assets put into Trust when
they went to battle
• Can last for 125 years
• Protect your assets from threats
• Preserve your wealth for future generations
• Think Downton Abbey, National Trust, Hospital Trusts,
Royal Family
Examples of Trusts Available
•Protective Property Trust
•Discretionary Trust
•Rental Property Trust
•Cinnamon Trust
•Disabled Person’s Trust

How Trusts can protect your assets
Taxation Divorce
Bankruptcy
Long term care

Property Ownership
•Owning as Joint Tenants
100% between you
•Owning as Tenants in Common

50% each
Family Asset Protection Trust
A Trust that protects your assets from:
• Long term care costs

• Sideways disinheritance
• Divorce
• Bankruptcy
• Probate fees

Rental Property Trust
•Portfolio continues as your legacy
•List of properties in Trust is flexible
•Clear ownership or part ownership
•No beneficial Joint Tenancy
Residential Nil Rate Band
Family Home Allowance
•Currently £325,000 IHT exemption
•Plus £100,000 in 2017-2018
£125,000 in 2018-2019
£150,000 in 2019-2020
£175,000 in 2020-2021
Properties within a Limited Company
•Limited Company shelters the properties
•Shares of the Limited Company are passed
to beneficiaries
•Properties stay within the Limited Company
post-death
•Business Relief may apply
Option Agreements, Joint Ventures,
Rent-to-Rent Agreements
•Understand their value within your Estate
•Ensure that the Agreement can be
“assigned”
•Write Strategy document with instructions
•Put Lasting Powers of Attorney in place
What would happen if you woke up
tomorrow and could not function?

Appointing an Attorney
•Someone you trust
•Who knows your plan
•Who could take over tomorrow
- If you got stuck abroad

- If you were in hospital
- If you became severely ill
Lasting Powers of Attorney
There are two types:
1. Health and Welfare
2. Property and Financial
Affairs

New LPAs launched in July 2015
•The Government want people to appoint an
Attorney
•Cheaper Registration Fee
•Choice to activate the LPAs straight away
•The process is swifter

In summary -
•Make sure you have a Will and keep it up-
to-date
•Consider Trusts to protect your assets
•Create Lasting Powers of Attorney to enable
your family, home and business to function

Weigh the Pig now and then
Protect yourself
Move forward with peace of mind

TERESA JONES
Contact me for a free consultation:
07896032419 or 01691 238701
teresa@compassla.com

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COMPASS LEGAL ASSOCIATES

• Two Executors with plans for a Reserve Executor

COMPASS LEGAL ASSOCIATES

Contact Teresa Jones on 07896 032419 or 01691 238701 or teresa@compassla.com

COMPASS LEGAL ASSOCIATES TERESA JONES

COMPASS LEGAL ASSOCIATES TERESA JONES

•Owning as Tenants in Common

• Long term care costs

COMPASS LEGAL ASSOCIATES TERESA JONES

COMPASS LEGAL ASSOCIATES TERESA JONES

- If you got stuck abroad

COMPASS LEGAL ASSOCIATES TERESA JONES

COMPASS LEGAL ASSOCIATES TERESA JONES

COMPASS LEGAL ASSOCIATES TERESA JONES

COMPASS LEGAL ASSOCIATES

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