Why Lasting Power Of Attorney Is Essential For Carers

According to figures from Carers UK, around one in eight adults in the UK acts as a carer for a loved one. That’s a massive 6.5 million people in total, and that’s only set to continue to grow in the coming years. Every day a further 6,000 people take on caring responsibilities, with the total likely to pass nine million by 2037.

However, a recent survey by YouGov on behalf of Carers Trust has highlighted the lack of Lasting Power of Attorney (LPA) agreements in place for carers. The survey found that a massive 82% of respondents had not made an LPA, while even among those who had there were concerning gaps in the understanding of the different types of LPA.

But in truth, an LPA is a sensible move in these circumstances. LPAs allow an appointed ‘attorney’ to make certain decisions on behalf of someone if they are no longer able to make those decisions for themselves. They come in two distinct forms – a property and financial affairs LPA, and a health and welfare LPA – though you can go for a combined version which encompasses both.

Having an LPA in place can make life much easier for carers. For example, it may be that the person you care for needs to make changes to their home in order to continue living there, such as the installation of a ramp for wheelchair access. Without an LPA, the carer would not be able to use your money to pay for that ramp, so may end up turning to expensive credit, adding to their worries.

Carers are often best placed to know exactly what is best for the people they care for and what decisions they would make if they still had the ability to do so. An LPA empowers carers to make just those decisions with confidence.

Jon O’Brien from Finance North Estate Planning Services said: “Millions of us act as carers for loved ones across the nation, which can be a stressful role at the best of times. But without an LPA in place, it can make looking after that loved one so much harder. Arranging an LPA is very simple, inexpensive and can deliver peace of mind.


To find out more please contact us below

Finance North Estate Planning Services
Cheshire Office – 0161 771 2056
Staffordshire Office 01782 963 303

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Don’t Make Inheritance Tax Taxing

Whenever Brits are polled on their most hated tax, without fail, one tax in particular always finishes top – inheritance tax. As a nation, we want to leave as much as we can after death to our loved ones and the thought of the taxman taking a slice evidently annoys us.

However, for there are plenty of simple and efficient ways to reduce your inheritance tax liability and ensure that you leave as much as possible to your loved ones.

  • Making a Will

It’s a simple fact that failing to write a Will generally means you will end up paying more inheritance tax. Without a Will in place, your estate will be doled out according to the rules of intestacy, and chances are the taxman will help himself to a healthy chunk of it.

One simple way to reduce your inheritance tax via your Will is to leave some to charity, as these gifts are free of tax.

  • Understand the thresholds

Inheritance tax is charged on estates once they pass £325,000 in value, at a rate of 40% on everything above that value. However, couples are able to pass their allowance over in full to their partner – in other words, couples have a £650,000 allowance overall. If their combined estate ends up being worth less than that, there will be no tax to pay.

There is also a new additional element to bear in mind here. The ‘main residence’ allowance allows you to pass on your family home to a direct descendent, with an additional tax-free allowance included. For this year it stands at £100,000 and will increase each year until 2020/21 when it hits £175,000. As this allowance applies per person, it will mean a total tax-free allowance of £1 million for couples.

  • Gifts

Even if you give something away, the taxman will still class it as being part of your estate if you die within seven years of making the gift. It’s a way of preventing people from handing over their home on their deathbed and avoiding the duty. Live longer than seven years and there’s no tax to pay.

However, there are certain gift allowances anyway which are free of tax. Everyone has a £3,000 limit each year, and what’s more this limit carries over to the following year if you don’t use it, to a maximum of £6,000.

On top of that you can give away £250 to each of any number of people every year, while further allowances are in place for wedding gifts to family members, friends and even political parties.

  •  Write your life insurance policy in Trust

Lastly, it’s a good idea to write your life insurance policy in Trust, as this essentially separates it from the rest of your estate.

Usually your life insurance payout will be added to the value of your estate before it is paid out to your loved ones, meaning they have to wait a while in order to receive anything and then may have to pay tax on that payout too.

But writing it in Trust means it is viewed as being outside of your estate, ensuring that your loved ones get every penny and likely get the money quicker to boot.

For expert advice on inheritance tax, contact us today on 0161 771 2056 or email help@FinanceNorthEPS.co.uk.


To find out more please contact us below

Finance North Estate Planning Services
Cheshire Office – 0161 771 2056
Staffordshire Office 01782 963 303

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