Sunday, February 22nd, 2009
Readers of our Private Client newsletter can enjoy 20% of our normal charge for a standard Will if you contact us before the end of February and sign the Will before the end of March.
For the Brighton and Hove area contact Maria Turner
For the East Grinstead area contact Laura Mason
And for the Worthing area contact Sue Bedwell
Sunday, February 22nd, 2009
The amount of money a husband or wife can automatically inherit if their partner dies without making a will has been substantially increased.
However, it could still leave the surviving spouse at risk of losing the family home or other valuable assets. The Government has urged everyone to make a will to protect their families and ensure that their money is passed on according to their wishes.
It is a common misconception that if a person dies without making a will, all their estate automatically passes on to their surviving spouse. In reality, however, the estate is divided between surviving relatives in a manner laid down by the law.
Until now, if the deceased person had children then the surviving spouse received £125,000 from the estate. If there were no children then that figure increased to £200,000.
The rest of the estate was shared out between the children or other relatives if there were no children. These thresholds - known as the statutory legacy for people dying intestate, that is, without having made a will - have been in force since 1993.
On 1st February this year, these figures were increased to £250,000 for the surviving spouse, when a deceased person leaves children and £450,000 when there are no children.
It offers some extra protection to the spouses of people who die intestate but it must be remembered that the increase is well below house inflation over the same period and also below the figures recommended by the Department for Constitutional Affairs in 2005. It suggested £350,000 and £650,000 respectively.
The level of the threshold is very important because most people’s main asset is their house. If the value of the house is above the threshold, the surviving spouse may have to sell up so the deceased’s children can receive their share of the inheritance. There have been several occasions where this has happened and it can cause great hardship.
As many people’s family circumstances become more complicated due to second marriages, it is possible that this may become more of a problem in future.
Announcing the increases, the Justice Minister Bridget Prentice, said: “Married couples and civil partners should not assume that when their spouse or civil partner dies, they will automatically be entitled to everything. It is up to individuals to make sure that their wishes are respected by making a will.
“My message to people is, don’t leave it to chance. Make sure your loved ones are properly provided for by leaving a will.”
This remains good advice. It’s your money; you worked hard for it all your life. Make sure it is handled exactly according to your wishes.
Please contact Maria Turner if you would like more information about wills and probate or any aspect of inheritance planning.
Sunday, February 22nd, 2009
More and more homeowners who can’t sell their properties in the current downturn are starting to rent them out to tenants instead, according to new research.
A survey by the LV insurance company, formerly known as Liverpool Victoria, showed there was a 56% increase in the number of properties available for rent in the final three months of last year. Nearly nine out of ten of those properties belonged to homeowners who had decided to let rather than sell in a depressed market.
Letting a property in this way will have some advantages but people new to the market should make sure they are meeting all the legal requirements that go with being a landlord. According to the LV research, many are not. For example, only 27% have signed up to a Tenancy Deposit Scheme (TDS) even though they are obliged to do so by law and risk being fined if they fail to comply.
The scheme is designed to protect a tenant’s deposit in the event of a dispute. If a landlord fails to sign up to a TDS then the tenant can apply for a county court order forcing him to do so. In these circumstances, the landlord may find himself being forced to pay the tenant an amount equal to three times the deposit.
New landlords who haven’t already done so should select a suitable scheme as soon as possible. If they keep a tenant’s deposit without registering with an approved scheme they could lose thousands of pounds.
There are other legal requirements depending on the kind of property you own and an array of potential pitfalls. For example, the LV research says that 20% of tenancies end in dispute.
All landlords run the risk of sometimes having to deal with problem tenants. Some may fail to keep up with the rent or not treat your property as well as they should. In these circumstances you may need legal advice so you can take action to recover rent arrears or to recover your property from bad tenants when necessary.
Please contact Jonathan Friend if you would like more information about tenancy deposit schemes or any aspect of property law.
Sunday, February 1st, 2009
The Government has announced new measures to provide more details in Home Information Packs (HIPs) and ensure that they are available as soon as a house is put on the market.
Sellers will have to include a Property Information Questionnaire (PIQ) covering areas such as the property’s service charges, flood risk information, structural damage, gas and electricity safety and parking arrangements.
The PIQ will be in addition to the other required documents such as the Energy Performance Certificate rating the property’s energy efficiency, evidence of title, the results of standard searches and the terms of sale.
HIPs will also have to be made available to buyers as soon as the property is put on the market. At the moment, sellers can request and pay for a HIP and then start marketing their property for up to 28 days before the HIP is ready and available. That will change on 6th April this year when HIPs will have to be available from the outset. PIQs will become compulsory at the same time.
The PIQ will also be required for leasehold properties and will include a summary of the leasehold arrangements. The temporary leasehold information provision was made permanent on 1st January. It means that a copy of the lease remains the only extra information needed for leasehold properties.
HIPs are required when selling homes of all sizes in England and Wales.
Please contact Sophie Warren if you would like more information.
© Copyright 2009 Burt Brill & Cardens Solicitors