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WHAT DOES THE ‘LEGALISE’ MEAN?

WHAT DOES THE ‘LEGALISE’ MEAN? Comments Off on WHAT DOES THE ‘LEGALISE’ MEAN?

A LOT OF STANDARD WILL CLAUSES ARE COMPLICATED SO, WHAT DOES THE ‘LEGALISE’ MEAN?

AN EXPLANATION – Your Will may contain some or all of these clauses

• “Without intending to derogate……..”
The purpose of this clause is to give the Trustees the discretion to advance the whole of the gift and income generated by it, if they consider it appropriate, but only for the maintenance, education, general benefit or advantage of the beneficiary until they become of age to inherit themselves i.e. – a child inherits under the inheritance age but, wants to go to university, the Trustees can advance all or a portion of the gift and any income.

• “I declare that any money………”
The power of investment is somewhat restricted under the Trustee Act and it is for this reason that the Trustees are often given wider power to invest funds with the same unrestricted powers as if they were the deceased. As the deceased sufficiently trusts the judgement of their appointed Trustees, then they should give them full discretion to invest in whatever investments they consider appropriate, as any restrictions could well tie the Trustees hands and adversely affect the ultimate value of the trust fund.

What does the legalise mean

What does the legalise mean?

• “I declare that my Trustees may exercise the power of appropriation……”
Sometimes a beneficiary may wish an item forming part of the estate to be given to them in satisfaction of a legacy of money. For example, the jewellery instead of a gift of money. Where an item of jewellery has not been left specifically it would normally be sold and it would be necessary to obtain the consent of all the persons who are entitled to inherit for the item to be given to a beneficiary instead of the sum of money. This Clause is inserted to allow the Trustees to give a particular item of the estate to a beneficiary as part of their inheritance.

• “I declare that in any case where my Trustees have an obligation………”
This clause gives the Trustees discretion to either apply directly themselves, or to pay the same to the parent or guardian of the minor beneficiary without being responsible to see to the application of the funds, thereby not having to look after the gift for possibly a number of years.

• “I declare that any Trustees shall have the power to insure……….”
Where a property has been left either on trust or under a life interest, or where it is going to be sold, the trustees have limited power to insure under the provisions of the Trustee Act 1925. Because the powers under the Act are somewhat restricted, this clause gives the trustees power to insure for whatever amount or in whatever terms they consider to be appropriate.

• ”Every person……………”
A good will contains the twenty-eight day survivor clause by default. This has the effect of avoiding two separate estate administrations in the event of the deceased and his/her beneficiary dying together or as a result of the same accident. It also has the effect of ensuring that the deceased’s wishes are carried out especially where there are substitute beneficiaries.

• PROVIDED THAT……..per stirpes…”
A good will can contain ‘stirpes’ which means if the intended beneficiary should be predeceased or the gift lapses, it will pass to their child or children in equal shares if more than one. The child or children may have an age restriction applied, i.e. upon attaining the age of twenty-five. Should there be no child or children to substitute, then that share is added to the others remaining and shared as per accretion.

• “Added as an accretion…….”
A good will can contain ‘accretion’ which means if the intended beneficiary should be predeceased or not take the gift, the gift lapses, the share will not pass to their child or children but, out to the surviving beneficiaries, i.e. leaving any child or children surviving them such child or children shall NOT take the share of my estate…….shall be added as an accretion to the remaining gifts.

• “My Trustees may in their absolute discretion whether or not in their own names………”
This clause enables the Trustees to continue any of the deceased’s business interests immediately after death rather than having to wait for The Grant of Probate.

Please note :- the following three clauses are inserted to assist the Trustees in their administration of the estate by simplifying procedures which would be complicated without the insertion of these clauses.

• “I declare that my Trustees may treat as income…..”
• “I direct that all interest dividends………”
• “I declare that all income accruing……….”

What does the legalise mean

A LOT OF STANDARD WILL CLAUSES ARE COMPLICATED SO, WHAT DOES THE ‘LEGALISE’ MEAN? AN EXPLANATION – Your Will may contain some or all of these clauses • “Without intending to derogate……..” The purpose of this clause is to give the Trustees the discretion to advance the whole of the gift and income generated by […]

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The £600m rip-off !!

The £600m rip-off !! Comments Off on The £600m rip-off !!

Banks and solicitors are overcharging consumers small fortunes for sorting out wills and small estates.

Extracts from an article by Tony Leven, The Guardian, Saturday 18th April 2009

Just because you’re dead does not stop banks and lawyers making a fortune from you. Each year Britain’s high street banks and solicitors pick up a massive £1.25bn in fees for sorting out wills. Between them, they have 88% of the market for dealing with that last testament. But, according to management consultant Adam Walker, 49, around half of that £1.25bn is “blatant overcharging”.

“It’s a £600m a year rip-off, where banks and solicitors are charging large fortunes to sort out small estates. It’s worse because they prey on grief-stricken families who are not in a mood to argue, or shop around,” he says.

And Walker should know. His experience¬ with a London law firm last year, when his father died, caused him so much anguish that he decided on a solution – he has set up what he says is the UK’s first “probate broker” – probate¬ is the legal term for sorting out a will. His brokerage aims to find the best deal for families who need to arrange processing of a will. Read More

The £600m rip-off !!

Banks and solicitors are overcharging consumers small fortunes for sorting out wills and small estates. Extracts from an article by Tony Leven, The Guardian, Saturday 18th April 2009 Just because you’re dead does not stop banks and lawyers making a fortune from you. Each year Britain’s high street banks and solicitors pick up a massive […]

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“In This World Nothing Can be Said to be Certain, Except Death and Taxes.”

Except Death and Taxes." Comments Off on “In This World Nothing Can be Said to be Certain, Except Death and Taxes.”

As far as fun topics go, death has to be near the bottom of the list. As Benjamin Franklin pointed out, it is a plain fact that we will all, one day, die. Yet very few of us are brave enough to plan ahead for that day. Research conducted by the National Consumer Council (NCC) revealed that more than 27 million people in England and Wales do not have a will, leaving their estate wide open. Scarier still, 30% of individuals aged 65 and over – that’s nearly two million people with a life expectancy of less than 20 years — have not made a will.

Where there’s a will……there’s a way! Read More
"In This World Nothing Can be Said to be Certain, Except Death and Taxes."

As far as fun topics go, death has to be near the bottom of the list. As Benjamin Franklin pointed out, it is a plain fact that we will all, one day, die. Yet very few of us are brave enough to plan ahead for that day. Research conducted by the National Consumer Council (NCC) […]

Read More

What is Your Domicile?

What is Your Domicile? Comments Off on What is Your Domicile?

What is your domicile? Did you ever think it would be something to question? Well according to 2010 statistics, 11.3% of our UK population is ‘foreign born’ (that’s over 7 million persons). Each of these persons could be non-UK domiciled, along with their children.
So, what is domicile and how do you spot it? Unfortunately, we cannot point you to a piece of legislation or definitive HMRC guidance. Their only guidance is – domicile is not the same as nationality or residence. Your domicile is decided under general law, which means it must be interpreted according to previous rulings of the courts.
Questions of domicile can be complex but, broadly speaking you have your domicile in the country that is your ‘real’ or permanent home which, if you have left, you intend to return to.
You cannot be without a domicile, and you can only have one domicile at a time.

There are three types of domicile:
•    Domicile of Origin – everyone acquires a domicile of origin at birth. This is usually the country that your father considered to be his real or permanent home at the date of your birth. If your parents were not married when you were born, your domicile of origin comes from your mother.
Your domicile of origin will continue until you acquire a new domicile – therefore if you have a domicile of origin outside the UK, then this is likely to still apply unless you intend toremain in the UK permanently or indefinitely.
•    Domicile of Dependence – if you are legally dependent on another person, i.e. because you are a child, you will automatically have the same domicile as the other person – so if their domicile changes, yours will too.
In addition, if you are a woman and you were married before 1974 you automatically acquired and retain the same domicile as your husband. But if you were a US national married to a man domiciled in the UK, you retained your US domicile for UK tax purposes. Read More

What is your domicile

What is your domicile? Did you ever think it would be something to question? Well according to 2010 statistics, 11.3% of our UK population is ‘foreign born’ (that’s over 7 million persons). Each of these persons could be non-UK domiciled, along with their children. So, what is domicile and how do you spot it? Unfortunately, […]

Read More

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