Surrey Law Society Magazine September 2014

Autumn Issue 2014

SurreyLawyer THE VOICE OF SURREY SOLICITORS Magna Carta 800 Gala Dinner Investment seminar attracts top City speaker

Leaving your legacy to charity sponsors this edition

Our market leading self-issue pack is now better than ever!

The 3rd edition pack offers great policy coverage at exceptional premiums Conveyancing insurance for everyday needs ci self-issue policies are a fast, efficient and cost effective way of dealing with routine residential conveyancing issues benefiting from: ● Straightforward issuing instructions and policy wordings ● Limits of indemnity up to £3m ● Free escalator clause on all policies at a rate of 5% per annum for 10 years ● CML compliant policies providing you and your client with peace of mind and protecting any lender’s interest ● Two new policies – Breach of Leasehold Covenants and Absence of Build Over Agreement (Sewer)

More than just a self-issue policy provider Self-issue policies not appropriate? Our expert underwriters can quickly find you a bespoke solution for your needs.

Why shop around to get the best deal?

Unlike other legal indemnity providers, we have the advantage of working with and on behalf of more than just one insurance company when dealing with bespoke matters. This means you always get the right policy, at the right price.

✓

Please call us on

020 7397 4363 if you require assistance or wish to order a pack

Email: enquiries@conveyancinginsurance.co.uk Legal & Contingency corporate website: www.legal-contingency.co.uk

Prefer to order your policies online?

Simply head to our website: www.conveyancinginsurance.co.uk

Let Legal & Contingency do the hard work for you

Conveyancing Insurance (Ci) Self-Issue is a portfolio of insurance products provided by Legal & Contingency Limited.

Legal & Contingency Limited – 19-21 Great Tower Street London EC3R 5AR | DX: 843 London/City – Tel: +44 (0) 20 7397 4363 – Fax: +44 (0) 20 7397 4364 Legal & Contingency Ltd is authorised and regulated by the Financial Conduct Authority. Registered in England No. 3511606 | Registered Office: 19-21 Great Tower Street, London, EC3R 5AR

Contents Intro

PUBLISHER Ian Fletcher Benham Publishing Second Floor 3tc House, 16 Crosby Road North, Crosby, Liverpool L22 0NY Tel: 0151 236 4141 Facsimile: 0151 236 0440 email: admin@benhampublishing.com web: www.benhampublishing.com

4

List of officers

5

President’s Jottings

6

CEO Report Local Issues

6-13

Local news Education

ADVERTISING AND FEATURES EDITOR Anna Woodhams STUDIO MANAGER Fern Badman ACCOUNTS Joanne Casey

14

‘CPD Points’ are dead - but what will replace them? Are we ready to move to the next level?!

15

SLS Investment seminar attracts top City speaker

15

Substantial Funding for International Study Fraud

MEDIA No. 1355 PUBLISHED September 2014 © The Surrey Law Society - Benham Publishing LEGAL NOTICE © Benham Publishing.

None of the editorial or photographs may be reproduced without prior written permission from the publishers. Benham Publishing would like to point out that all editorial comment and articles are the responsibility of the originators and may or may not reflect the opinions of Benham Publishing. No responsibility can be accepted for any inaccuracies that may occur, correct at time of going to press.

Benham Publishing cannot be held responsible for any inaccuracies in web or email links supplied to us.

DISCLAIMER The Surrey Law Society welcomes all persons eligible for membership regardless of Sex, Race, Religion, Age or Sexual Orientation.

16

The Global Economic Crime Survey 2014 shows global fraud is a real danger to good business practice

16

Who commits fraud?

Legacies

18

Leaving a legacy to charity

19

A legacy that lasts forever

20

Secure the future of Kew Gardens

21

Stray dog numbers rise in South East

22

Growing the Legacy Market

23

Notched up and homemade – DIY could endanger a legacy

24

Connecting Surrey through philanthropic giving

25

The Royal Surrey County Hospital Charitable Funds

All views expressed in this publication are the views of the individual writers and not the society unless specifically stated to be otherwise.

All statements as to the law are for discussion between member and should not be relied upon as an accurate statement of the law, are of a general nature and do not constitute advice in any particular case or circumstance.

26

The Open Spaces Society – protecting and preserving commons, paths, and green spaces

27

Where there’s a way, there’s a Will!

Members of the public should not seek to rely on anything published in this magazine in court but seek qualified Legal Advice.

28

Law firm mergers soar 65%, as legal sector’s push towards consolidation continues

COVER IMAGE © NATIONAL TRUST 2014. NATIONAL TRUST IMAGES/IAN SHAW.

30

International Tax: Border Crossing

Finance

Management

Copy Deadlines Winter 2014/15 Issue Spring 2015 Issue Summer 2015 Issue

21st 20th 22nd

November February May

Anyone wishing to advertise in Surrey Lawyer please contact Anna Woodhams before copy deadline.

Email:

anna@benhampublishing.com

Tel:

0151 236 4141

Anyone wishing to submit editorial for publication in Surrey Lawyer please contact Sue Seakens, before copy deadline.

Email:

sueseakens@surreylawsociety.org.uk

Tel:

01344 860830

30

Putting a price on family history

31

The Law Society – Quo Vadis

32

How did it go?

33

£216 million bereavement bill as families urged to review life insurance

33

The Art of Translating Legalese Employment Law

34

My Big “Fat” Unfair Dismissal Claim Property

34

Surrey Law Society – Index Editorial Surrey Lawyer 3

Officers

PRESIDENT

COMMITTEE MEMBERS

LAW SOCIETY COUNCIL MEMBERS

MAREK BEDNARCZYK

WIN CUMMINS Mackrell Turner Garrett 21-25 Church Street West, Woking, Surrey GU21 6DJ Tel: 01483 755609 Fax: 01483 755818 Email: win.cummins@mtg.uk.net

DAVID STEED Harold Bell & Co 174 Kingston Road, Ewell KT19 0SD Tel: 0208 393 0231 Fax: 0208 393 0155 Email: ds@haroldbell.co.uk

Hart Brown Resolution House, Riverview, Walnut Tree Close, Guildford, GU1 4UX DX 2403 Guildford 1 Tel: 01483 887704 Fax: 01483 887758 Email: msb@hartbrown.co.uk

VICE PRESIDENT SUSHILA ABRAHAM S Abraham Solicitors 290A Ewell Road, Surbiton KT6 7AQ

ELIZABETH EYRE Barlow Robbins LLP Church House, 30 Church Street, Godalming, Surrey, GU7 1EP DX 58351 Godalming 2 Tel: 01483 417121 Fax: 01483 426836 Email: elizabetheyre@barlowrobbins.com

Tel: 020 8390 0044 Email: office@sabrahamsolicitors.co.uk

DEPUTY VICE PRESIDENT DANIEL CHURCH

MARK GOUGH Solicitor 22 Woodlands Road, Little Bookham, Surrey KT23 4HF Tel: 01372 230786 Email: mark@markgoughlaw.com

TWM Solicitors LLP 123 High Street, Epsom KT19 8AU GLORIA MCDERMOTT 18 Station Approach, Virginia Water GU25 4DW DX 94652 Virginia Water Email: gloria.mcdermott@virginmedia.com

DX 30710 Epsom Tel: 01372 729555 Fax: 01372 742101 Email: daniel.church@twmsolicitors.com

HON SECRETARY KIERAN BOWE Russell-Cooke Solicitors Bishops Palace House, Kingston Bridge, Kingston upon Thames, Surrey, KT1 1QN DX 31546 Kingston upon Thames

JULIE ROWE Palmers Solicitors 89-91 Clarence Street Kingston upon Thames KT1 1QY DX 31524 Kingston upon Thames Tel: 020 8549 7444 Fax: 020 8547 2117 Email: julie.rowe@palmerssolicitors.co.uk

Tel: 020 8541 2041 Fax: 020 8541 2009 Email: kieran.bowe@russell-cooke.co.uk

HON TREASURER NICK BALL

KEN SEAKENS Seakens Solicitors 18 Station Approach, Virginia Water GU25 4DW DX 94650 Virginia Water Tel: 01344 843666 Fax: 01344 844584 Email: ks@kseakens.co.uk

Howell Jones Solicitors 75 Surbiton Road, Kingston upon Thames, Surrey, KT1 2AF DX: 57715 Surbiton Tel (Office): 020 8549 5186 Tel (Fax): 020 8549 3383 Email: nick.ball@howell-jones.com

IAN WILKINSON The Castle Partnership 2 Wey Court, Mary Road, Guildford, Surrey GU1 4QU Tel: 01483 300905 Email: ian@castlepartnership.co.uk

JOHN PERRY Palmers Solicitors 89-91 Clarence Street Kingston upon Thames, KT1 1QY DX 31524 Kingston upon Thames Tel: 020 8549 7444 Fax: 020 8547 2117 Email: john.perry@palmerssolicitors.co.uk

CHIEF EXECUTIVE & MAGAZINE EDITOR Sue Seakens Surrey Law Society 18 Station Approach, Virginia Water GU25 4DW Web: www.surreylawsociety.org.uk DX 94652 Virginia Water Tel: 01344 860830 Fax: 01344 428511 Email: sueseakens@surreylawsociety.org.uk

SUB COMMITTEES QUO VADIS (Strategic Planning) Sushila Abraham (Chair) Nick Ball Marek Bednarczyk Daniel Church Ken Seakens CONVEYANCING & LAND LAW Win Cummins (Chair) Gary Score* Maralyn Hutchinson* Ken Seakens Matthew Truelove* FINANCIAL Nick Ball (Chair) Kieran Bowe Mark Gough Ken Seakens Sushila Abraham SOCIAL Sarah Thomas* (Chair) Daniel Church Gloria McDermott John Perry* Julie Rowe Ken Seakens *Non-Committee Member.

membership details Annual Subscriptions:

£85 per person, per year.

Corporate Subscriptions:

(20+ fee earners) £1,700 per year

Solicitor

(not in private practice) £55

Solicitor

(not practising) £30

Honorary Membership:

free

Associate Membership:

free - no voting rights

4 Surrey Lawyer

To apply for membership please contact: Sue Seakens, Chief Executive Surrey Law Society, 18 Station Approach, Virginia Water GU25 4DW Web: www.surreylawsociety.org.uk DX 94652 Virginia Water Email: sueseakens@surreylawsociety.org.uk Tel: 01344 860830 Fax: 01344 428511

Editorial

President’s Jottings

I started my contribution to the last issue of our magazine by stating that “summer” was a lovely thought. This is now our “autumn” issue! Well, the weather pundits were right about flash floods during the summer period, but good weather was enjoyed too. Autumn now beckons.

Those of you who have enjoyed the traditional summer holiday hopefully will have come back rested and ready for the challenges ahead.

I would like to take this opportunity to congratulate Andrew Caplen on his appointment in July as the President of the national Law Society. Andrew was our guest speaker at our Gala Dinner in April of course and I have met him on a number of occasions. He is a man of integrity and energy and I wish him well in his demanding role as national president. I should also add my best wishes to the new Chief Executive of the national Law Society, Catherine Dixon who has taken over from Des Hudson.

Some of us also had cause to celebrate another auspicious event in July namely the 65th anniversary of Legal Aid! I was compelled to draft a blog on my firm’s website on the very subject. I concluded my blog by asking the question “Will Legal Aid survive another 65 years? I do hope so – how will access to justice be served without it?”

Some of you have been contacted and interviewed as part of the research the SLS is undertaking as part of our ongoing review of how the Society should change to meet the needs of lawyers in Surrey. Many thanks to all of you who have co-operated

and the SLS Committee will be considering the outcome in September. I also hope to undertake some visits to Surrey firms to obtain feedback face to face. I appreciate that we are all busy and giving up valuable time to either provide feedback on the telephone or via a face to face meeting is a serious commitment, but we do need to communicate effectively with our members and potential members to best prepare for the future.

Ken Seakens’ article in this issue concerning the national Law Society should be read carefully. Ken, a long standing SLS committee member as well as a past president of SLS, sets out areas where the national society may need to change for the benefit of all its members. Please get involved in this debate and as Ken suggests email your council members, David Steed and John Perry, copying Ken in with your thoughts and ideas.

Before my presidential year has finished I will be boating on the River Wey on 13 September with SLS colleagues enjoying I hope some late summer sunshine. Later in September I will be attending a function at the Middle Temple organised by the Institute of Legal Finance and Management (ILFM) followed some days later by a visit to Kingston when I will be representing the SLS at the special service for all involved in the Justice system. After the service I will be taking part in the Civic Procession with the Deputy Mayor and his guests. At the end of September I will also be walking with our Irish colleagues and Committee members past and present at the annual Walking Conference, which will be held this time in North Wales (dare we hope for some Welsh sunshine too?).

In October I hope to be at the Oval with our friends at the South London Law Society celebrating the achievements of their society and no doubt learning from that society’s experience over the last year.

My presidential year has moved along quickly and I will be passing the baton to my successor at the AGM on 26 November 2014 at the Guildhall in Guildford (6.30 to 9.00 pm).

Robert Bourns the current Deputy Vice President of the national Law Society will be our guest speaker. Robert is a senior partner at TLT solicitors and a past president of Bristol Law Society. He is an experienced advocate and employment lawyer. I would welcome seeing as many members as possible at the AGM so please do come to show your support and engage with Robert and all of us.

Reaching the end of these jottings reminds me of the moment when successful contestants for the Commonwealth and European Games paused to thank everyone who helped them. I am not comparing myself with those sporting athletes of course; however, wearing the SLS President’s badge of office is a bit like being a medal winner!

So in the time honoured tradition I would conclude by thanking Sue Seakens our CEO for her advice and guidance and also our Deputy President Sushila Abrahams and our Deputy Vice President Daniel Church for their support and indeed I also give a big “thank you” to all of my colleagues on the Committee.

In addition, I must thank my fellow partners at Hart Brown for their forbearance and support during my presidential year. I thank my wife Kate for her invaluable support and encouragement. Finally, I would say thank you to all of the members of the SLS who I have met during my presidential year. Please carry on supporting the SLS and my successor after the AGM and let us work together to face the challenges to come. n

Surrey Lawyer 5

Editorial

CEO Report Autumn 2014 The membership research project is coming to an end and as a result we have been in touch with several new organisations. One of these is the National Association of Licensed Paralegals (NALP) and we will be working with them in the next few months to see how we can provide local support and networking for their Surrey-based members.

The rumours surrounding the SRA’s plans to abandon the 16 hours rule for CPD in 2016 are rife but no-one, including the SRA, seems to know exactly what will happen and when. Suffice it to say that everyone must still provide evidence of adequate CPD attainment. The latest news is that some firms will be encouraged to introduce the new ‘outcomes focussed’ CPD training plans from Spring 2015. Many firms plan to continue following the 16 hours rule in the assumption that this will meet the new criteria, until advised otherwise. This is probably a good plan but there are no guarantees and the SRA has intimated that failure to comply with the new regime will incur penalties for the firm rather than the individual.

SLS are planning to set up a seminar ‘demystifying’ the proposed new process early in

The run-up to our AGM on 26th November is, as always, one of the busiest times of the year. Apart from preparing the 2015 CPD and Events Programme, we have our Private Client Conference on 18th September and Conveyancing & Land Law Conference on 23rd October, thanks to the generous support of our sponsors – Fiona Davies at St. James’s Place Partnership, Wilkins Kennedy, Thames Water Property Searches and CATAX Solutions.

the new year, providing ‘toolkits’ to ensure you are compliant and risk-free. Firms that already conduct annual appraisals will doubtless have staff training plans in place. This is good practise for everyone and a requirement of all the key quality standards such as Lexcel, CQS and WIQS. Training plans will be the responsibility of the firm but the responsibility for following the plan will be down to the individual and his/her supervisor.

The simplest way to do a plan is to consider three things: 1. What must be done (eg Money Laundering, Data Protection etc) 2. What should to be done (skills and knowledge updates) and 3. What could be done (new skills and knowledge) Whatever happens we are ready, willing and able to provide all the support you need to

meet the new CPD regulations as and when they come into force. n

2015 Diary Date

Thursday 18th June at Runnymede: SLS Magna Carta 800 Gala Dinner Magna Carta is so much more than a peace treaty between a quarrelsome King and his barons, sealed (not signed) 800 years ago in Runnymede meadow on the banks of the Thames in June 1215. Its lasting iconic value as the foundation of so many world democracies lies in the power of a principle, which states that nobody, including the King, is above the law of the land.

To celebrate this momentous turningpoint in English legal history Surrey Law Society is holding a Magna Carta 800 Gala Dinner on Thursday 18th June at the Runnymede Hotel in Egham, just across the road from that famous meadow. Our guest speaker for the evening is Sir Geoffrey Bindman QC, distinguished champion of civil liberty and human rights. We are delighted to announce that Index Property

6 Surrey Lawyer

Information will be sponsoring this magnificent event.

Tickets will be on sale shortly at £50pp plus VAT and tables of 8, 10 and 12 are available. The cost will include a drinks reception, a 3 course banquet with wine, plus tea and coffee. Mark the date in your diary and get your ticket request in as early as possible as we will be opening this event

up to our neighbouring local law societies… but of course giving SLS Members priority booking.

Further Information and Tickets from sueseakens@surreylawsociety.org.uk

More connected than you may think

Your full service provider We connect property proffessionals essionals with more than just drainage and water information. As an experienced provider of conveyancing due diligence searches, we’re here to protect you and your clients through a comprehensive range of market leading products, supported by a proven dedication to quality service.

Come and find out how connected we are.

Call 0845 070 9148 or visit isit www.thamesw www. ater-property p yse perty sear earches ches.co.uk

ISO 9001 Registered

Quality Management

Local Issues

Council Member’s Report August 2014

The Law Society’s AGM in July was a quiet affair compared with the SGM last December about legal aid, and there were really no contentious issues raised at all. people, and he has a very strong local law society background. His stated modus operandi is to listen, to talk, to persuade and to be constructive.

The Society has also pledged to support its members in connection with the changes made to criminal and civil legal aid.

Des Hudson is finally retiring in October, having been persuaded to stay on for a while, and will be replaced by Catherine Dixon as the new CEO in January.

In the latter case, the Society has made proposals to support the judicial review proceedings against the MoJ in respect of the swingeing criminal legal aid cuts.

In the interim Paul Coen, formerly of global bank Citigroup will be interim CEO, but his role will mainly be internal governance, whilst Andrew will be the public face of The Law Society.

This was of course widely reported in the legal press in early July.

At the last Council meeting a cut in the PC fee for 2014/5 was agreed which basically came about because the TLS /SRA group has reduced its net funding requirements by some £12m.

Andrew Caplen has now assumed the mantle of President, and I know that a lot of our local practioners will have met him as he hails from Hampshire and was the Society’s guest at the annual dinner in Guildford earlier this year.

He comes from humble origins and strikes me as very much being a man of the

One of the priorities for the coming year is to progress the Society to being a truly member-centric organisation.

To that extent there will be a key communication campaign launched this autumn to promote the services of Solicitors to the general public, utilising real Solicitors and their clients.

Access to justice remains a major problem for many in this country, and it is estimated that perhaps 600,000 people have lost access to civil legal aid in the last 12 months alone The Law Society stands firmly committed to fighting these cuts, and to opening up access to justice for everyone, as a democratic right of citizenship.

The next full meeting of Council is in October, and if anyone has any issues that they want either John or me to raise on your behalf, please do get in touch. n David Steed 29.08.2014

rhw Solicitors become first law firm in Guildford to be awarded WIQS Accreditation rhw have become the first law firm in Guildford to be awarded the WIQS accreditation and be listed as such on the Law Society website. rhw’s private client team have a combined experience of approximately 80 years in dealing with Wills and Inheritance.

Edward Pennington, Solicitor within the Private Client department at rhw said: “we are delighted to be an accredited member of the Law Society’s Wills and Inheritance Quality Scheme (WIQS). This shows that we follow best practice procedures to meet the highest standards of technical expertise and client service in providing wills and probate advice to clients” •

WIQS is only open to law firms or other organisations that are authorised

and regulated by the Solicitors Regulation Authority (SRA).

•

The Senior Responsible Officer or Head of Department must have at least three years’ experience of will drafting and estate administration.

•

Accredited solicitors and other staff complete mandatory training on the WIQS standard and show compliance through annual reaccreditation and ongoing enforcement checks by the Law Society. n

8 Surrey Lawyer

Local Issues

Don’t get put out of joint with substandard healthcare With modern technology, an ageing population and an increased focus on public health, it is essential that healthcare providers adapt their practice and keep on top of medical advances to meet the needs of the UK population.

As our bodies age and our joints start to creak under years of bending, lifting and twisting it is common that at some point in our lives we will suffer varying degrees of joint pain. Whether it be discomfort in our hips, knees, shoulders or anywhere in our body that undergoes strain on a daily basis, we are all vulnerable to the symptoms of ageing joints. With modern and innovative advances in orthopaedic health, more varieties of treatment are becoming available to relieve pain. For those suffering from more debilitating conditions such as severe osteoarthritis, joint replacement surgery is considered the most effective solution for reducing pain and disability.

The most common joint replacements in the UK are hip and knee replacements with approximately 160,000 procedures performed each year.

In recent years you may have heard of a company called Depuy who implemented a metal prosthesis for total hip replacements.

These products were found to be faulty leading Depuy to voluntarily recall their product meaning patients required

corrective surgery. With various types of modern treatment becoming available it is understandable to take a cautious approach in committing to major surgery operations such as joint replacements.

At St. Anthony’s, we not only make the most up to date and pioneering treatment available but we strive in delivering the highest quality of care to patients throughout every stage of their treatment.

We ensure no corners are cut whilst taking pride in having World class Orthopaedic surgeons at the forefront of new treatments and surgical techniques. Supported by specialist teams of; nurses, anaesthetists, chartered physiotherapists, radiologists, pathologists we offer a comprehensive range of specialist treatment for hip, knee, spine, hand, foot and ankle problems. From outpatient assessments to major surgery, we offer a complete range of joint care service tailored to the needs of each individual who walks through our doors. n For further information on the services we provide visit our website at www.stanthonys.org.uk.

For enquiries you can call us on: 020 8335 6691 or to book an appointment to see a Consultant you can call our Outpatients Department on: 0208 335 4678/9. Alternatively you can us email at: info@stanthonys.org.uk.

Specialist treatment for joint problems Where and when you need it If a joint problem is stopping you getting the most out of life, St Anthony’s Hospital can help. Our consultant surgeons and chartered physiotherapists offer a comprehensive range of specialist treatment for hip, spine, knee, hand, foot and ankle problems, at a time that’s convenient to you.

For more information and quotations please contact our helpline on

020 8335 4646 Alternatively you can email us at

info@stanthonys.org.uk St Anthony’s Hospital, North Cheam, Surrey SM3 9DW.

www.stanthonys.org.uk Surrey Lawyer 9

Local Issues

TWM Solicitors appoint experienced tax adviser TWM Solicitors has appointed Stephanie Sharpe to head its private client tax advisory service. She joins TWM from a firm of London accountants. However, the majority of her 20+ year career has been spent in Guildford and this is where she will be based working for TWM. Her previous Guildford tax roles have included at PKF (UK) LLP (now part of BDO) and Smith & Williamson.

Stephanie’s expertise is as a private client tax specialist providing high level private client tax advisory services (particular areas of expertise are tax planning in relations to inheritance, tax, capital gains, estates, trusts and HMRC investigations). Her clients include high net worth individuals and entrepreneurs.

Allison Crossman, Head of Private Client at TWM Solicitors said. “We are delighted to have appointed someone of Stephanie’s calibre to the team. Her client base closely mirrors that of our own here at TWM, and our existing clients will have a lot to gain from her arrival”.

Stephanie Sharpe said. “Working back in Guildford again was a big draw for me. It’s home and also where a lot of my contacts are based. I know Allison and the TWM private client team well from my time here, their excellent reputation advising residents of Surrey and further afield is well deserved. I had no hesitation in joining and look forward to contributing to the team’s success in the month and years’ ahead. Stephanie lives in Surrey. Her interests include gardening, as well as tending an 81 year old Morris car. She is also a clay pigeon shooter, and is looking forward to having more time to practice”. n

The Very Revd Alex Wedderspoon It is unusual for the spouse of one of our Past Presidents to merit an obituary in the Surrey Lawyer but Alex Wedderspoon is certainly the exception that proves the rule.

Alex was a man of huge substance, faith, intellect and wit and a good friend of the Surrey Law Society, attending many dinners and functions in support of his wife, Past President Judith. His Daily Telegraph obituary catalogued a life of huge achievement culminating in his final “official” appointment as Dean of Guildford Cathedral. As Canon Nigel Nicholson wrote “we have all lost a dear friend and a distinguished servant of God”, but there was so much more. The angular, Scottish, deadpan, somewhat severe clerically garbed exterior belied utterly what lay underneath.

He could immediately see the funny side in any aspect of human life but never decried the people who enabled him to see the ridiculous. It was positively dangerous sitting next to him at a formal gathering because with the same expertise as a ventriloquist and apparently without moving his lips at all, he could utter the most devastatingly hilarious observation reducing those around him to helpless and inappropriate mirth whilst, at the same time, appearing to be utterly engrossed in what the speaker was saying. He summed up characters instantly and had a bon mot for every conceivable occasion.

Many members of the Surrey Law Society attended the funeral of Past President Chris Davies. Here we witnessed Alex professionally moving “on casters” quietly enabling the service to proceed on time

10 Surrey Lawyer

when delays had occurred trying to accommodate many late comers. His ministry was deep and thoughtful and he provided care and a healing gift that strengthened many people in their particular time of trial.

He never lost his thirst for knowledge and had that rarest of abilities, that of being able to convey to anybody and everybody to whom he spoke that he was genuinely interested in everything they were saying and that he was learning from them. He probably was, but occasionally maybe not in the way intended!

His knowledge and wisdom was colossal and his sermons an object lesson in how to touch and educate a congregation.

It was only sad that he had to suffer so severely with lung disease towards the end of his life but, entirely in character, even though this must have been coming for some time, he accepted his lot, and never talked of his own ailments. An oft quoted saying is that if you ask somebody how they are then they will tell you. He never did, and was always more interested in your problems than his own.

We are all thinking of Judy, Caroline, Michael and their families at this time, secure in the knowledge that the memory of the twinkle in his eye will linger forever. n

Local Issues

Flash Flooding hits South East England after Heatwave Reported widely, and no doubt waking, then affecting many – the media sphere went wild recently with reports of lightning strikes and flash flooding across South East, England.

Indeed, the south coast has seen some terrific storm pictures in the last few weeks with flood warnings following “17,000 lightning strikes over 24 hours and 3,000 bolts” within the peak two hours.

A quick glance at online media, initially paints a picture reminiscent of this year’s winter flooding. However, a closer look quickly reveals a very different picture and environmental scenario.

This winter, saw widespread fluvial (river/tidal) and groundwater flooding affecting large swathes of the country (3, 4). By nature, these sources (types) of flooding are typically longer in duration and primarily affect those areas within or immediately adjacent to a water course and/or areas where the geology makes the ground (surface/sub-surface) susceptible to groundwater flooding.

On the face of it, this summer was very much a surface water flood event. High intensity rainfall dumped water at such a volume, that in many places, both natural and artificial drainage was overwhelmed and overland flow (surface water flooding) generated. Whilst, the majority of those areas submerged will have drained quickly leaving little affect, for those whose cars and homes were flooded, the legacy lives on.

Surface water (pluvial) flooding is generally more likely to occur in low lying areas (i.e. in a depression relative to the surrounding landscape), or to premises at the bottom of a slope. In urban environments, surface water risk can be triggered or exacerbated by impermeable (hard) surfaces which allow little absorption of water.

The expectations from climatic projections suggest extreme weather will happen more frequently in the future. Protect yourself and your liabilities – know and understand your flood risk.

Index Property Information offers a range of flood risk assessments to guide property conveyancing decisions - Flood, Floodview & Floodinsight. For rural transactions, GroundSure Agricultural assesses the flood and contamination risk from past and present activities in consideration of soil pollution hazards.

For more information call 01276 451203 or email threecounties@indexpi.co.uk. n

According to the Met Office, some areas saw more than half the average total July rainfall for England in just an hour (5).

So what caused the weather?

Very warm and humid air over the last week has dominated the UK, bringing us some of the hottest weather this year (so far). This tireless heat and humidity led to a progressive build-up of energy, which was released in spectacular fashion as an area of low pressure moved in, interacted and destabilised this very warm/humid air mass (hence the thunderstorms). A further factor light winds; exacerbated the situation with thunderstorms moving slowly, leading to areas experiencing prolonged periods of intense downpours (8).

The result of the recent weather in the South East was widespread travel disruption, inconvenience and inevitable financial loss.

In parts of Sussex, Surrey, London and Essex; flash (surface water) flooding brought roads and rail services to a standstill, and left some motorists trapped in their cars requiring rescue.

In Sussex, commuters found Worthing train station inundated with water. In Brighton, torrential rain mixed with hail stones to produce a somewhat artic scene and later left fire officers trying to pump water from flooded roads. A statement from Southern Water said torrential rain across Sussex led some sewers to be “overwhelmed by the sheer volume of water”.

In Brighton, the clean-up operation continued. Worthing train station is again operational, with fire crews having pumped some 4ft of water out of the underpass between platforms. Flooded homes and businesses are slowly being remediated.

According to the Environment Agency in 2009, in England there are some 2.4 million properties at risk of river/coastal (fluvial) flooding and 2.8 million at risk of surface water (pluvial) flooding.

A further 1 million properties have been identified to be at risk from both types.

Surrey Lawyer 11

Local Issues

Wine of the Season with Conal Gregory, Master of Wine

Without doubt Rioja is Spain’s best known wine region.

Protected from the Atlantic by the Ebro mountains, the three red grapes of Tempranillo together with a little Garnacha and Graciano yield rich wines with structure. One of the stars is Marques de Caceres, founded in 1970, whose Reserva 2009 is aged 20-22 months in French oak barrels. It shows supple elegance. Enjoy particularly with lamb. £16.49 or £14.01 when two bottles bought (Majestic Wine).

Across from the northern Rhone town of Tournon lies the hill of Hermitage. Imagine a delicious dry white with aromas of acacia flowers, honeysuckle and apricot with a taste of white stone fruit and figs. The Marsanne and Roussanne grapes yield wines of length that will keep for a decade, if you can resist that long! A tip is to opt for the less expensive Crozes-Hermitage. A cracking example is Les Marelles from Gilles Robin. £19.75 (Lea & Sandeman). n Sponsored by NFU Mutual Bespoke, high-value home insurance tailored to protect everything you value, including art, antiques, fine wine and more.

Visit www.nfumutual.co.uk/bespoke for further information.

12 Surrey Lawyer

Local Issues

Going Up at Downs Solicitors LLP Surrey-based, entrepreneurial law firm, Downs Solicitors LLP, is delighted to announce that it has promoted four lawyers as part of its annual review. The changes see Amber O’Connor, Neil Pfister and Williams Edwards all promoted to partners and Richard Cunningham is now an Associate.

Amber joined Downs as a trainee in 2006, qualifying into the private client team in 2008. She deals with Wills, the administration of estates, Lasting Powers of Attorney and mental capacity work. Amber splits her time between the Cobham and Dorking offices.

Neil Pfister has been with the Corporate and Commercial team since 2012 and specialises in the core areas of IT, media and hightech commercial law, including the creation and delivery of procurement agreements, contracts, licences, distribution and agency agreements and a number of IT specific agreements. He is also experienced in mergers & acquisitions, restructuring, refinancing and start-up ventures, as well as Intellectual Property licensing and related issues.

William Edwards, also a private client lawyer, joined the Godalming team in 2012. He specialises in a broad range of matters including tax planning, wealth protection, administration

of estates, Wills, Trusts and Lasting Powers of Attorney. He also administers substantial estates with assets in a variety of jurisdictions.

Richard Cunningham manages the residential conveyancing team. He acts for a variety of clients including property developers. Previously Richard has managed the property portfolio of a large firm of London-based surveyors, as well as advising Premier League footballers and entertainment professionals on their property acquisitions.

Commenting on the promotions Chris Shipley, the firm’s senior partner, said “I am delighted that the firm is in a position to make these internal promotions which recognise the achievements and contributions they have made to the firm’s continued growth and success over the last 12 months.

These latest appointments emphasise our continuous investment in attracting, retaining and developing high calibre individuals.” n

Surrey Lawyer 13

Education

‘CPD Points’ are dead - but what will replace them? Are we ready to move to the next level?

By Hannah MacKinlay

The scrapping of the solicitors CPD accreditation and points scheme by the SRA from October 2016 is controversial. In its place firms will have to certify annually that their staff have competence in their respective areas of law.

To put it bluntly the question COLPS have to ask themselves is have staff actually learned what they need to by going to courses or watching webinars they have chosen. And anyway - is this an effective use of their time?

A recent survey by the Solicitors Journal found that the amount of time solicitors spend on learning and development is expected to decrease under the new regime. Worryingly 78% do not believe that the new regime will result in any significant improvement in training at all.

But how do other businesses deal with training their staff?

Manufacturing and service industries also have a constant need to train and develop their staff in new techniques, and skills. Do they herd people into a room and talk at them for three hours?

Do they sit them in front of a on a badly produced ‘talking head’ or slide show webinar for an hour?

No, most definitely not. The business has to make sure that its staff have actually learned something of value that will add money to their bottom line, by providing better service, making less mistakes, increasing efficiency or gaining a competitive advantage. Put simply, it’s about effective learning, not points. Two hundred people in a huge hall listening entirely passively to seminars all day is about points, not effective learning. Listening to a one hour sales pitch masquerading as a ‘free seminar or webinar’ is not about learning either.

Often the training methods that industry uses have little emphasis on lectures and more emphasis on coaching, mentoring, ‘on-the-job’ learning, online fully interactive courses and selfstudy. Indeed research I carried out earlier in the year showed

that traditional stand-up training is often not the best way of training at all, with on-the-job and more interactive learning often being better. For example many lawyers use one hour webinars to get their points but the optimum time for any online webinar is only 20 minutes so bite-size is best.

Manufacturing industry has the advantage that it can invest thousands of pounds in preparing a carefully thought through and professionally designed training course that will be used by hundreds or thousands of people. By comparison only larger solicitors firms even have professionally staffed training departments.

But are we missing an opportunity here? If we follow industry’s example we should focus on the most effective way of training rather than just assuming that courses are the natural solution.

Look at excellent websites such as Cathy Moore’s (http://blog.cathy-moore.com) for slightly irreverent but thought provoking ideas on how to save the world from boring training (as she puts it).

I feel it’s as much about resources as courses, and also then going on to think about how the advice is ultimately communicated effectively and efficiently. Poor communication with clients is the second most common cause of negligence claims.

For example, assume you have a tricky issue to advise on.

Rather than reading out of date books, or booking a course two months ahead or listening to an hour of a webinar in the hope that it covers the point at issue, surely it must be better to have some online resource that deals with the problem so you can go straight to the answer? Or be able to find out if anyone else has had the same problem (at least one firm has an internal ‘social network’ to share information and solve problems). Or you might have a “Job Aid” which guides you through the decision process and points out the key facts that affect the outcome?

Perhaps we will see convergence between online knowledge providers (such as LexisNexis and Practical Law) with the traditional legal training providers. Perhaps they will move into working with firms more closely to develop their staff on established programs supported by distance learning, assignments, and modules. These might still include some interactive group discussions and short punchy 20 minute webinars as part of a blended learning approach.

Taking it one step further, once you have considered the law and facts, why reinvent the wheel when you then come to give your advice to the client? After all the same questions and same advice come up repeatedly. In the interests of quality, consistency and accuracy why do we not take a leaf from the book of other service industries and produce attractive, desktop published, plain English, understandable guides? Why do we insist on sending clients bespoke long confusing letters that they don’t read (and are inefficient to produce)?

As an exercise, I have put together draft guides dealing with common issues like that arise in property law such as joint ownership, boundaries, adverse possession, title insurance, SDLT, & fracking, all of which can be downloaded from my website www.propertylaw.guru (for a nominal sum to cover expenses).

These could be branded up with your logo or tailored to suit your requirements if required. Similar guides could be produced for many other areas. Perhaps I have hit on something new? Let me know your thoughts and suggestions at hannahmac@mac.com. n

14 Surrey Lawyer

Education

SLS Investment seminar attracts top City speaker Justin Urquhart Stewart, one of the UK’s leading financial commentators and former City Personality of the Year is in Guildford next month as guest of honour at a SLS investment seminar hosted by SLS sponsor, the wealth management company, HFS Milbourne. makes regular appearances on the television and radio. He has a keen interest in broadening the appeal of the investment markets to both private investors and SMEs and was involved in the original development of the AIM market and the investor educational company, Proshare.

Justin is a co-founder of Seven Investment Management which manages around £6.6bn of assets on behalf of wealth managers and other professional intermediaries.

“Justin has considerable experience following the ups and downs of the markets and his observations and assessments are keenly followed by both professional and amateur investors. We are therefore delighted and privileged to have Justin as key note speaker and we will no doubt benefit from his insightful comments on market sentiment and investment prospects, both for the UK and the wider world,” said Rod Milne for HFS Milbourne.

The event takes place on Wednesday 15 October at G Live! Guildford and runs from 9.00 am to 2.30 pm with complimentary refreshments and lunch provided. Justin will look at the investment markets and provide an economic update after which there will follow a Q and A session.

Justin is one of the industry’s most recognisable and trusted financial experts and as a well-known media figure he

The programme includes an address from Iain Halket, Chair of HFS Milbourne investment committee on modern portfolio management and a post Budget pensions update from Edward Nice, a chartered financial planner at HFS Milbourne.

Entry is free to active members of law societies in the south east and carries 3 CPD points. RSVP to Sue Seakens at Surrey Law Society to reserve a space: sueseakens@surreylawsociety.org.uk HFS Milbourne: tel 01483 468888 www.hfsmilbourne.co.uk n

SLS Investment Seminar Keynote speaker: Justin Urquhart Stewart Wednesday 15 October, G Live, Guildford

PROGRAMME 09:00 Registration 09:30 HFS Milbourne introduction (Rod Milne) 09:45 Modern portfolio management (Iain Halket) 10:30 Pensions Update following recent Budget changes (Edward Nice) 11:00 Coffee 11:20 Investment markets and economic update (Justin Urquhart Stewart) 12:20 Q&A with Justin Urquhart Stewart 12:30 Lunch 14:30 Close

Substantial Funding for International Study The HM Hubbard Trust is once again inviting applications from solicitors and trainees. The Trust provides Scholarships of up to £27,000 for a year’s Master’s level course to be carried out in Canada, Spain or France. Preference is given to trainees and solicitors who have recently passed their Legal Practice Course or have been practising as a lawyer for up to 3 years.

The Trust was established by the will of the London based solicitor, Henry Malcolm Hubbard, who had substantial business interests in Canada, Spain and Latin America. It is believed that he worked in Barcelona and was instrumental in bringing electricity to that part of Spain.

Commenting on the awards provided by the Trust, Vince Cheshire of TMF Group (the Trust Administrator) said:

“The funding provides a life changing opportunity for ambitious lawyers.

Increasingly lawyers need to have an international outlook. Studying abroad for a higher qualification provides a substantial lift in both legal knowledge and cultural understanding both of which are very important when working across national borders.”

Further information on the Trust and the

application process can be found at the Trust web site: www.hubbardlawscholarship.com.

Application forms are also available from the site.

The application closing date is 30th November with short-listed applicants being asked to meet with the Trustees in mid-December. n

Surrey Lawyer 15

Fraud

The Global Economic Crime Survey 2014 shows global fraud is a real danger to good business practice Publication of the Global Economic Crime Survey 2014 makes interesting reading. The report should be taken seriously as 50% of respondents were senior executives.

69% of respondents had experienced economic crime in the last 24 months.

Indeed, the evidence showed a typical organisation loses 5% of revenue each year to corporate fraud.

Of course, corporate fraud takes a number of forms: asset misappropriation; procurement fraud; bribery and corruption; human resources fraud; financial statement fraud; cybercrime; money laundering; tax fraud; illegal insider trading; market fraud including price fixing; IP infringement, including data theft; mortgage fraud and even espionage. As every lawyer will know, is is almost a truism that certain economic crimes attract more attention from Government enforcement agencies than anything else.

Thus, bribery and corruption, money laundering and anti-trust/competition law are all the subject of fairly complex regulations. And so they should be. These crimes have severe impacts upon organisations.

One of the interesting parts of the report is the effect of fraud on an organisation: damage to reputation is the biggest risk over and above the financial loss itself but then there is the disruption and distraction to the running of the business.

Bribery and corruption is less of a problem in Western Europe than anywhere else, but from the statistics it is only three times less likely than places like Eastern Europe and Africa – somewhat surprising but there is a warning there.

The median loss caused by fraud was £85,000. 22% of reported cases involved losses of at least £600,000. It is thus crucial that the area of potential fraud is addressed in our businesses and those of our clients.

Many of us will know law firms where fraud has brought the downfall of dependable, trustworthy practitioners. The first objective to agree is the right management and tone at the top. There is then a need to control the business environment properly, risk assess accurately and evaluate the effectiveness of processes and procedures all the time. This takes time and effort and inevitably a good deal of work on systems. Despite the red tape associated with financial institutions, over a quarter of respondents in the financial services industry reported having experienced money laundering in the last 24 months.

Procurement fraud was the second most reported fraud globally. As a practitioner of judicial review, I have seen a number of situations where the pieces in the jigsaw do not seem to fit together – small wonder as the amount of time from when the fraud commenced until it was detected was 18 months. Judicial review proceedings of public procurement issues must, of course, generally be issued within 3 months.

Closer to home, types of human resources fraud such as false wage claims over, for example, commission, falsification

16 Surrey Lawyer

Who commits fraud?

It is estimated that £2 billion is lost to fraud in the UK each year. Whilst anti-fraud controls and audit measures can help prevent the occurrence of fraud, the unfortunate truth is that a company is still vulnerable to the threat of fraud.

The Association of Certified Fraud Examiners (ACFE) reported this year in their Global Fraud Study that over the last three years, 50% of the reported cases suffered a financial loss of £150,000; and an alarming 78% of employees or managers committed fraud.

So how do you spot a fraudster?

According to Cressey’s Fraud Triangle theory, those who commit fraud fall into the three elements: motivation, opportunity and rationalisation.

David Foster Partner, Barlow Robbins LLP 01483 464243 davidfoster@barlowrobbins.com

of entitlements/employee benefits, misclassification of payroll expenses and alike are common. Having staff who are with you in heart and mind is key as tip offs are consistently the most common detection method for fraud – over 50% of the reported cases were detected by tip offs.

Having said that, 42% of fraud was committed by employees, 36% committed by managers and 19% by owners/directors.

The profile of an internal perpetrator makes interesting reading. He – yes, he – is likely to be between 31 and 40 years old, have been employed for over 10 years and have a university degree. Before you get paranoid about all your senior staff, 44% of the perpetrators of fraud display behavioural signs of “living beyond their means”; 33% display signs of “financial difficulties”; 22% display signs of “unusual close associations with vendors/customers”.

According to the theory, each element plays a part in committing fraud.

The motivation may be a financial pressure; such as to pay for a nice lifestyle, educate their children or even to cover gambling habits.

According research by Dr. Steve Albrecht; he believed that the most likely motivating fraud factors from the list of personal characteristics were: • • • • • • • • •

No surprise then that we get back to behaviour as one of the key indicators.

Statistically, the law enforcement authorities are only informed in 49% of cases globally. Dismissal occurred in 80% of cases, and civil action in 44% of cases. In 5% of cases, the victim did nothing.

Law enforcement authorities were more likely to be involved in with external perpetrators (61%) and in 37% of cases – perhaps surprising low – this led to the cessation of the business relationship.

To sum up, fraud is there: we all need to take time out to analyse where it may occur; adopt practices, where necessary after professional advice, which reduce the risk of it causing damage; have robust after the event processes and most importantly be as close as we can to the people with whom we work. n

Living beyond their means An overwhelming desire for personal gain High personal debt A close association with customers and contractors Feeling that pay was less than his responsibility Strong challenge to beat the system Excessive gambling habits Undue financial family or peer pressure Lack of recognition for performance

Dr. Abrecht’s study also ranked a list of factors allowing the opportunities to commit fraud without being caught: • • • • • •

Placing too much trust in key employees Lack of proper procedures for authorisation of transactions No segregation of key duties and accounting functions Lack of independent checks on performance Lack of clear lines of authority and responsibility Lack of frequent policy and procedure audits

Fraud

The opportunity element may present itself to the individual; often through inadequate controls or by taking advantage of the trust he is granted in his position. Yet he will believe that he will not get caught.

Rationalisation is often the key element when ethics enter the equation and moral judgment is tested. The individual will justify his behaviour in some manner. He will believe it is not a criminal act, perhaps justifying his decision by paying the money back, or that no-one will notice. Often we see perpetrators confess by believing that the company owes it to him for all the hard work he has put in over the years; thus rationalising his behaviour.

There is also a new breed of fraudster. One who simply lacks a moral conscience sufficient to overcome temptation to defraud others.

What happens when you suspect a fraud?

Once a suspicion has arisen, don’t panic but act quickly. Seize the initiative by developing a course of action.

Analyse the available evidence and circumstances surrounding the suspicion, retain accurate records, develop a fraud theory and set out your objectives in an investigation plan.

Whatever the investigation, each case must begin with the intention that it will end in litigation.

The following is our ten point guide for planning an investigation: 1

Analyse the existing evidence and identify who appears to be involved in the fraud?

2

Prepare and test your fraud theory. Look at the precise methods of the fraud - when, where, why, who and how?

3

Who benefitted from the fraud? Was it for personal gain or to hide internal losses?

4

Consider the possibility of a “worst case� scenario. Did it involve other people, competitors, customers or suppliers?

5

Refrain from alerting the suspects of your interest. Nor should you search through their work computers, laptops or emails without first forensically securing an original hard drive image as evidence.

6

What evidence is there to prove or disprove the suspicions?

7

Where is, or who has the relevant evidence and how can it be legally obtained?

8

Consider the preferred outcome in terms of disciplinary action, prosecution or litigation if the suspicions are true (try to resist disciplinary action until the facts have been established).

9

Identify and retain the necessary skilled resources to achieve the objectives and legally collect the best evidence from digital forensics, surveillance, interviews, profiling, communication analysis and expenses records etc.

10 All evidence and records should be preserved and secured.

Any movement of evidence must be catalogued showing the continuity of movement.

All cases of fraud and corporate dishonesty are diverse.

Individuals will show different motivations, take deceitful opportunities and rationalise their actions. However, if you apply the above points to your investigation, it will ultimately help you find the truth. n TenIntelligence provides due diligence, fraud investigation and brand protection services, with offices in the UK and in Dubai, UAE.

Surrey Lawyer 17

Legacies

Leaving a legacy to charity Including a gift to charity in a will is a great way to make a difference and there are also tax benefits.

Legacies are an important source of income for many charities and the voluntary sector received around £2billion in legacy income in 2011/121. However, this is only 5% of total income and the number of people who leave legacies to charity may be only 7%2.

Solicitors and other will writers can play a role in changing this. A study carried out by the Cabinet Office Behavioural Insights Team, published in 2013, found that when will writers mentioned the possibility of a leaving a legacy to charity, the percentage who did this rose from 4.9% to 10.8%, and that this increased to 15.4% when people were asked if there are any causes they are passionate about3. This suggests that asking people at the right moment whether they want to leave a legacy is important and so is the way in which the question is asked.

Types of gift A cash gift, or pecuniary legacy, is a straightforward option. But the effects of inflation could mean the ultimate value becomes less than intended. This problem can be dealt with by updating a will regularly, or linking the cash legacy with inflation.

Another possibility is a gift of individual possessions, known as a specific legacy.

This might be property, shares or land or other things. It’s worth providing for what happens if the possession is sold during the client’s lifetime.

If a client would like a charity to benefit more significantly, an alternative option might be a residuary legacy. This involves giving a proportion of an estate to charity after expenses and any pecuniary and specific legacies have been paid.

Drafting the will It’s important that a charity is properly identified in the drafting of the legacy and its full name, address and registration number should be included. This information is available from the Charity Commission for charities in England and Wales, the Office of the Scottish Charity Regulator for Scottish charities and the Charity Commission for Northern Ireland for Northern Irish charities. Many charities have a section on their website with template wording for legacies.

A legacy can be given for specific activities of the charity, subject to an expression of wishes or binding obligations.

The risk of including a binding obligation is that the legacy could fail if the charity isn’t able to use the legacy for the purpose. A letter setting out the client’s wishes

18 Surrey Lawyer

provides more flexibility and is often a better option. The trustees of the charity should take the wishes into account, but are not bound legally to follow them.

You should also consider what happens if the charity beneficiary ceases to exist. If this is the result of a ‘relevant charity merger’ under the Charities Act 2011, and the merger is entered in the Charity Commission’s register of charity mergers, the legacy will usually take effect as a gift to the successor charity. However, a legacy may fail if the wording provides that the charity must be in existence at the date of the testator’s death.

If a legacy intended for a charity fails, the property will become part of the deceased’s residuary estate.

Tax benefits There is no Inheritance Tax (IHT) on gifts under a will to charities or community amateur sports clubs (CASCs). Legacies to overseas charities are not exempt from IHT. But gifts to an organisation within the EU do now qualify, if the organisation would qualify for charitable status if it was based in the UK. The value of a gift to a charity or CASC will be deducted from the estate before IHT is calculated. In some cases this may bring the total estate value below the taxable threshold, which is £325,000 for 2014/15.

Rebecca Fisher and Chris Rowse are both at Russell-Cooke solicitors. Rebecca is a Partner in the Private Client Team and Chris is a Senior Associate in the Charities and Social Business Team.

Where an individual leaves more than 10% of his or her net taxable estate to charity, the estate will benefit from a 36% rate of IHT, which is a 10% reduction from the usual rate of 40%.

Charities are not liable to capital gains tax (CGT). If the executors sell assets a CGT liability may arise against the executors.

This can be avoided by appropriating the assets to a beneficiary charity as the executors will then sell as bare trustees. If the asset is land it will be necessary to comply with provisions in the Charities Act 2011 concerning the disposal of charity land.

Footnotes 1

Final tip It’s a good idea to encourage clients to let a charity know that they should benefit from a legacy under a will, as this helps charities to plan ahead.

Rebecca Fisher and Chris Rowse are both at Russell-Cooke solicitors. Rebecca is a Partner in the Private Client Team and Chris is a Senior Associate in the Charities and Social Business Team. n August 2014

2

3

The UK Civil Society Almanac 2014, NCVO (http://data.ncvo.org.uk/a/almanac 14/how-much-does-the-voluntarysector-receive-in-legacy-income-2) Remember a Charity ‘Why Leave a Gift in Your Will’ (http://www.rememberacharity.org. uk/why-leave-a-gift) ‘Applying behavioural insights to charitable giving’ (28 May 2013), Cabinet Office

Legacies

A legacy that lasts forever You know better than most that clients have all kinds of reasons for remembering a charity in their will. One of the most important is the desire to pass on the things they care about to the next generation – their children and grandchildren. They want to know their gift will last and still mean something years from now.

Houses like Knole in Sevenoaks, vast areas of the Lake District, even the White Cliffs of Dover – have all been supported by gifts left in wills.

Every time someone leaves a gift to the National Trust in their will, they’re playing a direct part in helping to look after special places for future generations to enjoy. We’re a charity, not funded by the government, so we depend on memberships and donations, especially gifts in wills, to keep 350 historic houses and gardens, and miles and miles of glorious countryside and coastline in England, Wales and Northern Ireland open for everyone to enjoy.

Protecting the places they love.

Your client may have a favourite National Trust place they want to protect, such as a stretch of coastline, a woodland, garden or historic home that is close to their hearts.

They can specifically request that their

legacy goes towards looking after their special place. Or, they can decide to give their legacy to the National Trust to spend wherever the need is greatest.

You can trust us to honour your client’s wishes.

We only ever spend legacy income directly on projects or conservation work, which means that every penny of your client’s legacy will be spent exactly where

and as they wish. And by leaving a gift to the National Trust, they’ll be playing a vital part in making sure the places they’ve loved and enjoyed live on for ever, for everyone.

There are also other ways of supporting our work, such as tax effective charitable trusts and foundations – please get in touch if you would like to find out more. n

Solicitors like you have helped clients remember the National Trust in their wills and secured the future for places like the White Cliffs of Dover.

Your client’s legacy will last forever – you have our word When we take on a place, we agree to look after it forever. With a gift in their will to the National Trust, your client can choose to support our work wherever the need is greatest. Or they can dedicate their gift to the care of a place they love. We promise that every penny of their gift will go towards helping the places they’ve loved and enjoyed live on forever, for everyone.

For more information, or to order copies of our free legacy guide, please call us on 01793 817699, email legacies@nationaltrust.org.uk or visit nationaltrust.org.uk/legacies © National Trust 2014. Registered charity number 205846 Photography: © National Trust Images/John Millar

Surrey Lawyer 19

Legacies

Secure the future of Kew Gardens For over 250 years, the Royal Botanic Gardens, Kew has led the world in plant and fungal science. Today, from our World Heritage site at Kew and the gardens and Millennium Seed Bank at Wakehurst Place, we are finding innovative solutions to global challenges.

You know Kew as a beautiful local attraction, but did you know that Kew... •

is home to three art galleries, a library and a museum?

Our collections include more than 200,000 prints and drawings, encompassing world-class botanical art and illustration from the 18th-21st

•

•

centuries; over half a million library and archival records and an 85,000strong Economic Botany Collection illustrating human uses of plants for food, medicine, clothing and social activities. employs hundreds of scientists?

Our Jodrell Laboratories, Millennium Seed Bank and Herbarium are home to experts who discover and explore plants and fungi from around the world, investigating new sources of food, fuel and medicine to meet the demands of our growing population. has offered formal horticultural training since 1859?

Our apprentices, students and alumni enrich British and international horticulture, as well as our two gardens, which are enjoyed by over a million visitors each year. They stimulate curiosity, provoke debate, celebrate beauty and inspire a love of the living world.

If your clients love Kew Gardens or share our passion for inspirational horticulture, cutting-edge science, botanical art, heritage landscapes or global plant conservation, Kew Foundation (RCN 803428) is the perfect home for their legacy gift. n Contact: Kerry Watts on 020 8332 3249.

Leave a lasting legacy Legacies allow Kew to meet the challenges of the future.

Whether helping to protect our much-loved heritage gardens at Kew and Wakehurst Place or supporting the development of plant-based solutions for global challenges such as food and fuel security, a gift to Kew offers lasting benefits for future generations.

For further information contact:

Kerry Watts 020 8332 3249 legacies@kew.org

www.kew.org/legacy

The Foundation and Friends of the Royal Botanic Gardens, Kew is a registered charity No. 803428. Registered in England and Wales.

20 Surrey Lawyer

Legacies

Stray dog numbers rise in South East The 2014 annual Dogs Trust Stray Dogs Survey launched this month revealing that 9,419 stray and abandoned dogs were handled by local councils across the Meridian region between 1st April 2013 and 31st March 2014. This represents a 2% increase from the 9,200 dogs handled during the same period last year. But would you know what to do if your dog went missing?

Rather worryingly, 64% of owners in the South East were unaware that it is the Local Authority’s responsibility to pick up and care for missing strays. A further 75 per cent of respondents were also unaware that they had only seven days to recover a missing dog once he/she is in local authority care before ownership can be transferred to a new owner or they are potentially put to sleep if a new home cannot be found.

On average, dog owners thought they had 15 days to recover a missing dog, more than double the official time allocated – a figure which could help account for the 378 dogs in the Meridian region that were unnecessarily put to sleep this year. Although Local Authorities continue to encourage responsible dog ownership and do not want to put dogs to sleep, they do struggle to cope in this difficult economic climate.

Clarissa Baldwin OBE, Chief Executive of Dogs Trust says: “The number of instances of straying on our streets is declining in the UK as a whole, but we still have a significant job to do when it comes to raising awareness about responsible dog ownership. Owners are unsure of who to reach out to and how much time they have to recover their dog should he or she go missing. Microchipping not only helps speed up the process of reuniting an owner with their dog, it is

Photograph © Brian Young

also significantly reducing the number of strays overall. We’re calling on dog owners across the UK to come along to one of our free microchipping events at www.chipmydog.org.uk so that we can continue to improve the situation ahead of the change in law in Wales in 2015 and England in 2016 which will make microchipping compulsory.” n

Who’ll keep him happy when your client’s gone?

We will – as long as your client has a Canine Care Card. It’s a FREE service from Dogs Trust that guarantees a bereaved dog a home for life.

At Dogs Trust, we never put down a healthy dog. We’ll care for them at one of our 18 rehoming centres, located around the UK. One in every four of your clients has a canine companion. Naturally they’ll want to make provision for their faithful friend. And now you can help them at absolutely no cost. So contact us today for your FREE pack of Canine Care Card leaflets – and make a dog-lover happy.

Call

020 7837 0006

Or e-mail

today

ccc@dogstrust.org.uk

Or write to: Dogs Trust, Canine Care Card, FREEPOST WD360, 17 Wakley St, London EC1B 1NA (no stamp required) Please quote “DTSL”. All information will be treated as strictly confidential.

This service is currently only available for residents of the UK, Ireland, Channel Islands & the Isle of Man

www.dogstrust.org.uk Registered Charity Numbers: 227523 & SC037843

Surrey Lawyer 21

Legacies

Growing the Legacy Market Make charitable prompting the standard practice among professional advisors Latest figures show that 14.4 % of Wills that go to probate include a charitable gift, generating almost £2 billion a year for good causes.

This compares with 12.2 % in 2007. By continuing to increase the percentage of Wills that include a charitable gift, it may be possible to raise further millions every year to assist charities in carrying out their objectives for the benefit of society.

One of the biggest barriers to growing the legacy market is that most people simply are not aware that they can support their favourite charities in this way, or they are not reminded at the right moment. This is where solicitors and other professional advisors can assist: by ensuring that their clients are made aware of charitable giving during the Will-writing process.

Independent research shows that solicitors and Will-writers who always prompt their clients to give to charity write more than twice the number of charitable Wills compared with those who sometimes prompt. Work by the Cabinet Office in 2013 showed that three times as many people in the United Kingdom

%(

Bert Ryder, ex-RAF Surbiton Home resident

would leave a gift to charities that they are passionate about in their Will, if their solicitor reminded them to consider it.

The charity sector also has an important part to play in actively promoting gifts in Wills and, as other charities do, The Royal Star & Garter Homes runs marketing campaigns in the national press and a wide range of lifestyle, special interest and military publications. The Charity builds strong relationships with its supporters and its Legacy Manager, John Ingram, writes to them directly to ask if they will consider leaving a legacy.

The Royal Star & Garter Homes relies heavily on legacies to enable it to continue caring for disabled ex-Service men and women. Founded in 1916, the Charity has looked after thousands of brave veterans and enabled them to live full lives despite their disabilities, including Surbiton Home resident Bert Ryder. Bert was in the RAF for nine years during the Second World War. He was posted to RAF 85 Squadron in Kent where he provided ground support to the night-fighter ace, Wing Commander John ‘Cat’s Eye’ Cunningham. Bert then flew for six years in the Far East including Burma and Malaya. When he was demobbed, Bert served 35 years in the Metropolitan Police. He came to the Surbiton Home with his wife Jean, in 2014, when life at home became difficult because of their disabilities.

The Royal Star & Garter Homes’ award-winning Solihull Home opened in 2008, and the Home to replace the original building on Richmond Hill opened in Surbiton, Surrey, in August 2013.

Recently, it won the Pinders Healthcare Design Award 2014 in the ‘Best Dementia Home – Small’ category. Another Home will be built in High Wycombe. Residents in the new Homes are accommodated in large bed-sitting rooms with en-suite facilities and continue to benefit from the wide range of therapies and activities which the Charity provides, enabling individuals to live life to the full. In addition, each new Home incorporates a specialist unit to care for those living with dementia, for which there is an increasing demand. By 2020, it is estimated that 40,000 veterans requiring nursing care will be affected by dementia. The Royal Star & Garter Homes offers specialist nursing and therapeutic care to all ex-Service people, including those living with dementia. The state-of-the-art facilities also enable the Charity to offer interim care for young disabled Service personnel. n The Charity’s Legacy Manager, John Ingram, said: “By working together with solicitors and other professional advisers, I hope that legacy fundraisers like myself can continue to grow the legacy market to secure the future for the charities we work for.”

John Ingram, The Royal Star & Garter Homes’ Legacy Manager

22 Surrey Lawyer

Legacies

Notched up and homemade – DIY could endanger a legacy There’s around 15.5 million invalid or poor quality Wills in the UK. That racks up to an astonishing 70% of all Wills written, which could mean hundreds of thousands of intestacy cases where beneficiaries are missing, or estates thought to be destined to a friend find their way to distant family.

These statistics revealed by the 2013 Will Aid survey highlight the growing danger of homemade Wills, often resulting in invalidity due to inadequate witnesses. The research discovered around three million have a Will that’s either homemade or assembled from a DIY kit, and a further 12.5 million whose say in the future of their estate may be out of date. In fact, there’s almost 28 million adults – that’s over half of the population – who have yet to even write one.

It was discovered there was just one witness to the Will – Steven Kimms* – who was also appointed the sole executor of her estate and ultimately one of two heirs. Not only did this invalidate the Will, but the family’s barrister told the court that Helena had gone into a “catastrophic mental decline” after losing her husband and brother within a year, and so was also invalid as it was ruled she could not have known or approved it. Her legacy was therefore treated with the rules of intestacy, and passed across to her next-of-kin. Shelley and Steven Kimms did not see a penny.

With so many knowing in their minds where they would like their estate to travel after they pass on, but without having committed that destination to paper, loved ones can lose out.

Locating missing beneficiaries is at the heart of our business, but alongside this we can conduct Asset and Will searches, as well as provide Missing Will and Missing Beneficiary Insurance to cover all eventualities. With over 90 years of experience, our expertise and access to information means there is nobody better placed to undertake your research in such a timely and cost-effective manner. When it comes to administering an estate and taking care of your client’s legacy, we understand that each case is unique and can provide a bespoke service to suit your needs. n

That happened in the case of 81-year-old Helena McKae*, who left her £300,000 legacy to next-door-neighbours, Shelley Kimms* and her husband. According to Shelley, Helena felt as though her family did not “pay her enough attention” and so severed all ties to her next-of-kin. However, after she passed away in 2010, Helena’s niece contended that her aunt lacked legal capacity to execute a Will.

* Names changed for confidentiality purposes.

g ng fi c M i s si ia r i e s

Mis sin In g s

in ac ene r T B

Fr

ee

Send us an email on Linkedin titled ‘Competition’ with your address, telephone number and email to be entered into our prize draw.

e Fa Tre C h m il y eck

e ill

T: 020 7832 1430 E: legal@fraserandfraser.co.uk W: www.fraserandfraser.co.uk

operty Pr gemen a an

Contact us toda ay

t

M

Could our services help you?

an Will e d S ar

set As h c

neficiary Be nce a ur

W g nc n i M i s s ra I n su

/in/fraserandfraser

Surrey Lawyer 23

Legacies

Connecting Surrey through philanthropic giving Giving does not have to start – and end – with the signing of a cheque. In fact it is the Community Foundation for Surrey’s experience that our donors care deeply about the causes they support and the work that is carried out as a direct result of their generosity.

Many find that philanthropy is fulfilling because it is a personal gift that makes a real difference to local people’s lives. The Foundation has over 80 funds that have been established by individuals and families to enrich their local community.

An excellent example of local giving in action is the Mamie Mollan Fund, established as a bespoke fund within the Community Foundation for Surrey by her own solicitor after her death, to allow the inspiring work she undertook in her lifetime to continue. The Fund supports people at a time of need or crisis in the South West Surrey area, where Mamie lived. Since its inception in 2010 it has awarded over £23,000 to organisations taking care of those affected by sudden injury, bereavement, financial difficulty or domestic violence.

Now, thanks to a government scheme, there really is no better time to give. The

24 Surrey Lawyer

Community Foundation can almost double your donation as it is able to match any new, permanent funds on a 50% basis from the Government’s Community First scheme.

For example: a £1000 donation can benefit from the Community First match of £500 and with Gift Aid a further £250 is added resulting in a total of £1750.

In the UK alone there are over 180,000 charities and those with a little money are inundated with requests. However, to help philanthropists to give wisely the Community Foundation for Surrey presents them the opportunity to connect with their locality, as well as tease out what passions

lie beneath; whether that be supporting older people, those with disabilities or local sporting projects. By using the Community Foundation vehicle, your clients can tailor a bespoke fund, with opportunities to see the organisations they support making a tangible difference on their doorstep. Due to our local knowledge and expertise, we can find wonderful grassroots projects, operating below the radar, where a modest sum of money can make a huge difference.

For more information on giving to your community please visit our website, www.cfsurrey.org.uk, or contact us via telephone on 01483 409230. n

Legacies

The Royal Surrey County Hospital Charitable Funds The Vision

How will this be achieved?

Our long term vision at the Royal Surrey County Hospital is to transform the health services in Surrey with the aim of creating a nationally and internationally recognised centre of clinical and academic excellence.

This can only be achieved by working closely with other healthcare providers in the region and will help us to achieve the following: Specialist care closer to home Integration of care, teaching and research • Becoming one of the top cancer centres in the UK We wish to make certain that our services and care are enhanced in ways that are impossible to realise through traditional NHS funding alone and that is why we cannot do this without your help.

• •

One of the best decisions you could make Once you have provided for your family and friends please consider remembering the Royal Surrey County Hospital in your will. This will help us to ensure we are able to offer the best possible patient care and medical treatment for generations to come.

Some great reasons to make a will • •

Family, friends and the cause you believe in will all benefit.

It will ensure your wishes are known and your intentions are carried out after death.

•

Being clear and precise, it will save your loved ones from unnecessary anxiety.

• It could reduce inheritance tax – your solicitor can advise on current tax legislation.

The next step

Writing a will is relatively straight forward. However, it is always advisable to seek professional advice which can take you through the process and make sure everything is in order. If you decide to leave a legacy to the hospital please show your will writing professional our preferred wording.

Two ways to give 1

Pecuniary gift – you can choose to give a gift of a fixed amount of money 2 Residuary gift – you can choose to leave a share, or the whole, of what is left in your estate once you have provided for your loved ones.

If you would like to speak to someone in confidence please call the Fundraising Department at the Royal Surrey County Hospital on 01483 464146 or email rsctr.fundraising@nhs.net. n

Surrey Lawyer 25

The Open Spaces Society –

9LTLTILY [OVZL VWLU ZWHJLZ

Leave us a legacy to

help ensure that future

generations will enjoy

commons, open spaces and

paths, in town and country,

¸;OL 6WLU :WHJLZ :VJPL[` JHTWHPNUZ [V JYLH[L HUK JVUZLY]L JVTTVU SHUK ]PSSHNL NYLLUZ VWLU ZWHJLZ HUK YPNO[Z VM W\ISPJ HJJLZZ PU [V^U HUK JV\U[Y` PU ,UNSHUK HUK >HSLZ š

throughout England and Wales

:JHU ^P[O `V\Y

WOVUL [V ]PZP[

V\Y ^LIZP[L

9LNPZ[LYLK JOHYP[` UV

VY `V\ JHU ]PZP[ V\Y ^LIZP[L H[ ^^^ VZZ VYN \R

At the Open Spaces Society, Britain’s oldest national conservation body, we have been campaigning to protect commons, greens and paths for almost 150 years. All these are under threat in various ways including neglect, illegal obstructions and the pressure of new developments. Any gift, large or small, can make a huge difference and will allow us to continue our work to defend these open spaces and paths which are some of our nation’s finest assets.

We know that family and friends will come first but, if you have the opportunity, please think about enabling a gift to the Open Spaces Society and help us ensure that the open spaces and paths we have all enjoyed will continue to be there for future generations. n

Contact us:

;LS!

,THPS! OX'VZZ VYN \R

“I rely on the Open Spaces Society to protect our commons – but I want to know that the society will live on after me. Leaving a legacy to the society will ensure its vital work can continue,� so says Richard Mabey, countryside writer and one of our vice-presidents.

Remembering the society in a will can help us ensure that future generations will continue to enjoy commons, green spaces and paths, in town and country, throughout England and Wales.

Your open spaces need you!

@V\ JHU JVU[HJ[ [OL 6WLU :WHJLZ :VJPL[` H[!

H )LSS :[YLL[

/LUSL` VU ;OHTLZ 9. )(

protecting and preserving commons, paths, and green spaces

Open Spaces Society 25a Bell Street Henley-on-Thames RG9 2BA Phone 01491 573535 Website http://www.oss.org.uk/how-you-can-help/legacies

Remembering your local Theatre in Guildford

A growing number of our audience are providing for us in their wills, helping to ensure that Guildford’s Yvonne Arnaud Theatre will bring pleasure to future generations.

Each year the Theatre plays to an audience of over 150,000 people and our touring productions are seen by a further 85,000.

The seating capacity is an intimate 590 and we simply cannot survive on ticket sales alone.

Although we have one of the highest attendance rates in the country, we could not continue to present the quality of work for which we are renowned without additional financial support.

If you would like to discuss any aspect of leaving a bequest to the Yvonne Arnaud Theatre, in complete confidence, please contact the Funding Office on 01483 535818 or e-mail funding@yvonne-arnaud.co.uk.

www.yvonne-arnaud.co.uk

Registered Charity Number 200500.

26 Surrey Lawyer

Photo by David Wickham

C a si mp nc a e ign 18 in 65 g

Legacies

Legacies

Where there’s a way, there’s a Will!

In my opinion, throwing a bucket of ice cold water over your head is not legally binding as a pledge to make a Charitable donation. For what it’s worth, I don’t believe there is a secret plot which has resulted in half of the UK being baptized over the last few weeks either.

But I do believe that there are ways that you can leave something for your favourite charity after you die.

Everybody seems to know that any gifts you make to a ‘qualifying’ charity during your lifetime or in a Will will be exempt from Inheritance Tax. Some also know that a donation to charity in your Will can also reduce the inheritance tax rate from 40% to 36%. In order to qualify for the reduced rate the deceased must have left at least 10 per cent of the net value of their estate to a qualifying charity.

But I would hope that everybody reading this article would realise that tax efficiency is not going to be the prime motive behind any contributions to a charity.

Don’t get me wrong, we deal with clients who have set up multi-million pound charitable foundations, and it is, of course, vitally important that the tax side is structured correctly. In addition, the tax treatment might affect the amount a client actually donates - a slightly higher donation could give a better net result. But the emotive driver for the charitable donation is invariably something that has happened during a person’s life.

So I thought I’d share our views as to how our IFAs should approach this issue when someone says that they want to leave some money to charity.

OK, given that the audience for this article are legal practitioners, I’m currently trying to work out how to stop you all turning the page at this point– what can an IFA teach a lawyer about advising clients on this issue?

Firstly, I’m not actually an IFA - I’m a tax specialist, and a former Head of Tax Consulting for a Big 4 accountancy firm to boot. Hah, you didn’t expect that, did you?

Secondly, as a tax specialist who is both non-IFA and non-lawyer, I can confirm that there are some things a good IFA can teach a good solicitor when it comes to advising clients, including matters such as inheritance tax. For example, if I ask a

lawyer how to plan to reduce the inheritance tax liability for an aged client where there is an existing restrictive Power of Attorney held by a beneficiary, most solicitors tend to get a bit evasive. However, a good IFA should be able to deliver a range of very tax efficient options which also meet with the approval of the local authority.

Getting back to the issue of the charitable donation, depending on the scale of the donation, our advisors should address the issue in the following order: •

Calculate the value of the estate, and how this is likely to change before the Will is next re-visited.

•

Calculate how much the client wants beneficiaries to receive. Think in terms of percentages, as opposed to predetermined amounts expressed in £s.

•

As part of this calculation, identify the assets that are liquid and illiquid. For example, it’s no use giving a house to the grandchildren if they then have to sell up.

•

Make sure that the beneficiaries have the assets that the client wants them to have, and the cash available to pay for the costs of having them.

•

Beware the effects of inflation and deflation. If the client decides to specify a cash amount (either to beneficiaries with the rest going to a charity, or vice versa), the Will should be revisited on a frequent basis.

•

•

Make sure that the estate pays the inheritance tax before the amount of the charitable contribution is calculated.

Be aware of the historical track record of the charity when there’s a legacy.

Does the client really want potential beneficiaries to have to wage war through the courts with a charity?

Consider the actions of a well known animal charity in the estate of George Mason as an example – would the client be happy with this behaviour?

Matthew Evans Pluto Wealth Ltd www.plutowealth.co.uk

•

Consider whether it would be better not to name the charity in the Will itself, but via an Expression of Wishes.

•

Finally, where has the idea for the charitable donation come from? If someone else has suggested the idea to the client, are they influencing the client in some way? Has a charity offered fee assistance for the preparation of the Will (admittedly this is very unlikely for our clients).

Above all, we would stress that our advisors need to bear the Will in mind each and every time they deal with that client.

So that’s how an IFAs should address the issue with the client. Would a law firm deal with it in the same way?

And given that I am not an IFA or a lawyer, you may be tempted to ask how I personally would deal with it. But you’d be missing the point – do you think my colleagues would ever allow me to meet a client?

I did already tell you I’m a tax specialist, didn’t I? n

Surrey Lawyer 27

Finance

Law firm mergers soar 65%, as legal sector’s push towards consolidation continues

by Tommy White at Wilkins Kennedy LLP

The number of mergers between law firms has soared 65% in the past year; with 385 taking place in 2013, up from 234 in 2012 says Top 20 accountancy firm and Surrey Law Society sponsor Wilkins Kennedy LLP. This staggering statistic shows that the legal sector’s push towards consolidation is continuing. Just five years ago there were just 146 mergers in the same 12 month period (see graph below).

The trend indicates that firms with an appetite for acquisitions that will improve their profitability and capture market share are increasingly snapping up smaller players in order to grow profitability and combat the increased competition from other providers of legal services.

Tommy White, Partner at Wilkins Kennedy, says: “These figures show that the rising trend for mergers shows no signs of slowing down, as financial pressures, increased competition, and to a perhaps lesser extent regulatory issues, are still having a major impact.”

Examples of law firm tie-ups in the last year include: •

King & Wood Mallesons merger with SJ Berwin in October 2013 which created a $1bn global law firm

•

In June last year, Norton Rose merged with US giant Fulbright & Jaworski and is now known as Norton Rose Fulbright

•

Leading Midlands firm Wragge & Co, which announced its merger with City firm Lawrence Graham at the end of 2013, to create Wragge Lawrence Graham & Co. The merger was formalised in May

•

In October, Manches joined forces with Penningtons to create Penningtons Manches, after Manches went into administration.

Tommy continues: “The drive for consolidation appears to be more, not less, pressing as we leave recession behind. Yes, it’s often about immediate survival, but it’s also about securing on-going profitability and competitiveness.”

“Mergers are also a useful way for firms to diversify their business to broaden their appeal to wider markets. It wouldn’t be surprising to see national and international mergers gaining even more momentum going forward.” n

Number of law firm mergers 2009-2013

“M&A, corporate finance and property work for lawyers, particularly in the south of the country are all recovering but are generally still below the heady days of pre-2007. In addition the long term, secular decline in litigation work continues – despite a helping hand from recession linked disputes.”

“Whilst some firms need to find a white knight quickly in order to stave off potential financial collapse, others are turning to mergers to deliver that boost in profitability that a merger will achieve from cost savings.

Economies of scale from a merger – especially where the merged firms can better utilise staffing levels – can be substantial.”

Recently there has also been a trend for mergers, particularly international ones, which are based on longer term strategic thinking, and are aimed at gaining access to new sectors and services, or to achieve greater global exposure.

28 Surrey Lawyer

Source: The Solicitors Regulation Authority, year to 31st December (latest data)

A RELATIONSHIP THAT IS

SOLID IN A SHIFTING LEGAL LANDSCAPE

The legal landscape is changing. To thrive, practices are evolving.

Our specialist relationship managers understand your profession. Trained as Lexel Consultants, they know SRA Accounts Rules, and are poised to support you through opportunities and challenges. lloydsbank.com/solicitors

Finance

International Tax: Border Crossing

by Keng Cheong, Corporate & International Tax Manager

It is a daunting prospect expanding your business overseas. Both business and nonbusiness factors will need to be considered. However, when it comes to tax, many businesses take the simple view of “what is the tax rate of that country?” In fact, it is anything but simple.

Businesses should view tax as part of the costs of running the business; and like any costs, legitimate planning should be taken to reduce the costs.

The following are some pertinent questions businesses should consider when expanding overseas: •

•

•

•

What is your business plan? Do you wish to trade in or trade with the target country? Expanding overseas does not mean you have to have a presence in the other country. However, if for commercial reasons an operating presence is required, there will definitely be compliance and regulatory requirements to understand and fulfil.

How will this expansion complement your current business?

Businesses can choose to incorporate a subsidiary or establish a branch in the target country. Bear in mind that whichever entity you choose, it will certainly have a direct implication in both the home and target countries.

Do you need someone on the ground? Local knowledge is important and makes commercial sense if you want to successfully sustain an expansion into another country. It is quite common for a business to either second an employee to the target country for a period of time to get the business on its feet or use a local agent, usually someone you have dealt with in the past.

Will the overseas entity have autonomy to decide how it is run? The parent company of a multinational group usually sets the strategic goal of the business. But will they also manage the overseas business or give them sufficient level of authority to decide how best to achieve that goal?

•

How will you finance the overseas operation? The most common are debt, equity and a mix of both. The latter is the most preferred as it allows the business to get around restrictions involving debts such as thin capitalisation rules) and equity (dividends subject to profitability of the business).

•

What is your profit extraction strategy? This follows from the previous point. In addition to interest (debt) and dividends (equity), other commonly used extraction strategies include royalty and management fees. Each bring their own set of complications including withholding tax and arms-length considerations.

•

Are you aware of any reliefs available in the target country?

As a way of attracting foreign investments into their country, tax reduction incentives are being offered to businesses to set up their operations in their country such as research and development relief, patent box relief and tax free zones.

The above list is by no means exhaustive. It should be used as a guide, so that you are aware of your home and overseas tax exposure. It is important for you to understand that the tax issues are not confined to the overseas operation only, but will also have an impact on the home country as well.

If you wish to discuss the issues raised above, please email Keng: keng.cheong@wardwilliams.co.uk or call 01932 830664. n

30 Surrey Lawyer

Putting a price on family history Homeowners could be putting family heirlooms at risk by failing to recognise their monetary value writes Nicki Whittaker, a High Value Home Specialist at NFU Mutual.

Heirlooms, such as paintings and jewellery, which have been passed down through the generations, often have great sentimental value. Unfortunately, because these items are rarely viewed in terms of their monetary value, there is a real danger that they will not be adequately insured.

A recent survey conducted by NFU Mutual highlighted a worrying tendency for homeowners to undervalue or overlook items which they had inherited. Indeed, in 90% of valuations undertaken by NFU Mutual’s valuation partners, homeowners had either undervalued items or simply had no idea of an item’s value.

The survey revealed that inherited items, such as jewellery, watches and furniture, were most commonly undervalued by homeowners, typically by 45%. The problem is exacerbated by the fact that most homeowners do not reassess the value of their home contents for decades, forgetting that the price of gold, the death of an artist or the popularity of items from certain periods can significantly affect the value of certain heirlooms.

One valuation specialist recalled sitting down in a policyholder’s kitchen for coffee at the end of a visit and spotting an interesting piece of china sitting in the cupboard with the mugs. Upon closer inspection, the item turned out to be a vase handed down from the policyholder’s great aunt and worth many thousands of pounds. Another valuation expert told of a walnut bureau that the owner thought was perhaps worth £1,000 but was actually worth closer to £40,000 and could have been worth more had it been better cared for!

Unfortunately, it is not until these items are stolen, or damaged in a major incident such as a flood or fire that a homeowner will even give a thought to their value or replacement and, by then, it is often too late.

The survey, which was undertaken to coincide with the launch NFU Mutual Bespoke, a new insurance product for high value homes, revealed a real problem with the insurance of inherited items. Part of the problem comes from the fact that, inherited items are rarely looked at in a monetary light, with artwork, for example, found to be undervalued in two-thirds of cases.

Heirlooms are often rich in family history and, therefore, it is essential that they are safeguarded for future generations. This doesn’t mean they cannot be enjoyed or even used but it does mean that they should be insured for their true financial worth and not just their sentimental value. n

Management

The Law Society – Quo Vadis The Law Society (TLS) has appointed a new Chief Executive., Catherine Dixon, solicitor, previously heading NHS Legal, but of what will she be nominally in charge?

The current local authority style of governance of the profession has been in place for approaching 30 years and is undoubtedly overdue for review. Council has 61 geographical seats and 39 non-geographical seats plus various office-holders and TLS has staff, Heads of Department and a Chief Executive.

Council meets around 6-8 times a year preceded by voluminous briefing papers for Council Members to absorb, usually delivered less than a week beforehand. Council determines strategy and the Executive carry it out. That is the fond belief but is it right? In the context of few meetings, overwhelming documentation and little time can Council actually perform its allotted tasks in a wholly competent manner.

No blame to the Council Members who give of their limited time freely and with genuine purpose but does this system actually deliver effective governance?

the specialist groups revert to the status quo ante? Are TLS accreditation schemes the solution or the problem? Should TLS pursue “advertising campaigns”? Is the brand “Solicitor” sufficiently recognized and supported? Does it remain appropriate in an era of mass communication that vital decisions for the profession as a whole are determined by Council alone without effective consultation? How should challenging SGMs be avoided in the future?

So many and varied questions (and I am certain you will think of more) call for deliberation and comment from the profession at large.

Isn’t the appointment of a new Chief Executive a perfect moment to pause, take stock and let TLS know what its members think about governance, strategy, communication and consultation?

If all is well, fair enough but the evidence does not point in that direction. I pray in aid of my assertion the recent SGM last December. Regardless of the narrow vote of no confidence the very fact that members of TLS felt such a meeting had to be called begs the question of whether TLS in its present form meets the aspirations and needs of its membership.

So why not pause for a moment from your busy schedule and give some consideration to the future of your beleaguered profession? Email your Council Members with your thoughts and ideas for onward transmission. You do it for your clients as easily as drawing breath so why not take this moment to do it for yourself, your professional brethren and the public at large. The latter may not know it or even appreciate it but they need you.

In essence the general feelings of the membership, as evidenced by responses to the electronic Gazette, and anecdotally at gatherings, social events, CPD or whatever, seem to be that it’s “them and us” with a notable lack of communication/consultation in between.

I would welcome copies of any emails you might conjure up for your Council Members as I am in the throes of considering the issue as to whether TLS requires any adjustments to its governance and any ideas at all from fellow professionals would be of enormous assistance in terms of informing deliberations.

Given the myriad methods of communication which the modern generation can deploy this is unfortunate at best and incompetent at worst. There could and perhaps should be a better way.

Our profession is the only real bulwark to uphold the rule of law and provide access to justice. It needs to thrive and drag itself, kicking and screaming if necessary, into the Twenty First century.

Accordingly I invite my readers, both of you, to give some thought to how better the TLS could employ its manifold assets to benefit its membership – which is, or should be, its principal purpose.

Could or should the Council be larger than 100 or smaller? If so, which and what numbers? Should the division between geographical and non-geographical be maintained or adjusted and, if so, how? Should the terms of the office-holders remain at 1 year or be longer? Should they be paid? Should there be a Board instead of a Council? Who should then determine strategy? Is the staffing level about right, too large, too small? How many Council meetings per year should there be? How should TLS communicate with the membership? How often? In what detail? Should Council survive in its current form? What, if not, should replace it? Should there be a majority of Council business carried on behind closed doors “in confidence”? Should the Divisions be retained or should

These things will not, in the context of ever more government, preserve themselves. The overwhelming faith in electronic solutions demonstrated by government of whatever persuasion is proving something of a chimera. One size, one solution is, in actuality, an illusion.

The profession has a centuries-old tradition of challenging injustice, incompetence and oppression which needs to be maintained. TLS needs to be aligned to these ideals and operating with efficiency and directed purpose.

If you have any doubts that the current setup achieves these aims please help by suggesting some viable alternatives for review.

It is your profession.

Time to help it. n

Ken Seakens, ks@kseakens.co.uk

Surrey Lawyer 31

Management

How did it go?

By the time this goes to print most law firms will have agreed (or be just about to agree) their Professional Indemnity insurance for another year. Although firms can move renewal dates to any other date in the year, so far at least, most still remain in October.

So how did it go? It is always difficult to make the time to review the process as most clients are happy the task is concluded and are keen to move on.

However it is worth spending a small amount of time to consider a few points to help with future renewal negotiations.

Did you receive your renewal terms in good time to make a decision? If not, what factors could influence this? Possibly request the renewal declaration earlier from your broker? Maybe it was outside your brokers control with underwriters taking too long to send terms. Either way, an understanding of what you require in future years and a discussion with your

brokers as to your expected timeline would be beneficial.

obtaining alternative terms? Did you stay with your existing broker anyway? Why was that? As brokers we are often in each of these situations. Reasons vary greatly for success and failure; however honest feedback is critical for brokers. If your broker retained your business it is beneficial to advise them why, so they can build on this. If they were unsuccessful either obtaining or retaining your business, then its most likely they would want to try again in future years. Advising them on what needs to be improved will again help with a more efficient process in the future.

How was the communication? Did you have to constantly chase, or were your brokers constantly chasing you? What do you prefer? As a broker we have lots of communications with insurers on behalf of our clients. Choosing how much of this is relevant and keeping our clients informed is a fine balance. When a client advises their broker what they prefer it often makes for a far more efficient renewal negotiation.

If you would like more information or a no obligation conversation regarding your insurance I can be contacted on 0845 270 6720.

The competing quotation. Did you put your existing arrangements to the test by

Tristan Webb, Managing Director, Aspire Insurance Services

I hope this information has been useful, in our experience the grass is always greener on the side of the fence you choose to cultivate. n

A wealth of expertise ...

A s an Associate Partner of St. James’s Place Wealth Management, I am familiar

with and understand the financial challenges that legal professionals face in these changing times. I focus solely on providing face-to-face advice and offer a dedicated, personal wealth management service to build long-term, trusted relationships. Together, we would create a detailed working plan, providing you with a clear direction towards meeting your personal financial goals. This includes clarifying your objectives and researching all of the options available to you.

I have the experience to help you successfully secure and enhance your financial future by offering specialist advice in a wide range of areas including:

• Investment planning • Retirement planning • Tax & estate planning An investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise.You may get back less than the amount invested. For further information, or to request your complimentary guide to wealth management, contact:

FIONA DAVIES DipPFS

Associate Partner

Tel: 020 7495 1771 Email: fiona.davies@sjpp.co.uk Web: www.sjpp.co.uk/fionadavies The Partner represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website www.sjp.co.uk/products. The title ‘Partner’ is the marketing term used to describe St. James’s Place representatives.

32 Surrey Lawyer

Management

£216 million bereavement bill as families urged to review life insurance • Up to £216m in IHT taken from life insurance policies in 2011/12 • Extra paperwork only obstacle between average saving of up to £41,000 • Up to 40% of life insurance payouts could be lost in tax An urgent review of life insurance policies is being called for after the figures from HM Revenue & Customs (HMRC) revealed bereaved families are being hit with unnecessary Inheritance Tax (IHT) bills totalling up to £216 million.

The latest figures from the taxman show the problem is getting worse. More than 5,200 people left their families with an IHT bill on their life insurance pay-out in the 2011/12 tax year, up by around 5% in two years and averaging £41,000.

Sean McCann, chartered financial planner at NFU Mutual, said: “This is completely unnecessary and should not be happening.

“Life insurance policies should, wherever possible, be written into a trust to prevent a significant chunk going to the taxman. Otherwise, up to 40 per cent of the pay-out could be claimed by the taxman when it could be going to bereaved families instead.

“Writing a policy into trust also has the benefit of speed of payment. When a policy has been written into trust, payment can reach the family bank account within three to four weeks. If it had to go through probate instead, it could delay payment for several months.

“Even if you don’t think you have an IHT problem, the speed of pay-out from a policy in trust should be an incentive to review your policy.

“Often, this money is vital to keeping the family business running, or means surviving families can make ends meet – whether it’s to replace lost income or to pay for extra childcare while the surviving parent goes out to work. ”Trusts are really simple to set up and, with most life insurance companies providing the forms free of charge, it shouldn’t cost anything other than spending a few more minutes to complete.

“However, HM Revenue & Customs’ figures show around 75,000 people left behind a life insurance policy in 2011/12 which wasn’t written into a trust. That’s 75,000 families who could have been

made worse off from an IHT bill or slow payment.” n

The Art of Translating Legalese

by Paul Stewart at Wessex Translations

Legal work requires very specialist expertise, acquired by Wessex Translations over its 40 years of business. As well as their many legal clients in the UK and Europe, they also have contracts with the Court of Justice of the European Union, the European Commission, and until the European Parliament voted to do without English translations of its proceedings, a contract with them as well!

Most legal practitioners dread cases that involve the need for an interpreter or a translator. It invariably involves considerably more hassle, often without much evidence of progress.

Translations seem to cost far more than they should, whilst interpreters want reimbursement not only for their actual work, but for waiting time and travelling time to one’s offices, the court or chambers, as well as their travelling expenses. There are also the ever present doubts about legal aid and when, if ever, one is paid.

Wessex ensure that the extra work and expense incurred by document translation and interpreters is as pain free, and as cost effective as possible. As suppliers of these services how do they achieve this for their clients in the justice system, be they lawyers, police, the CPS, or the courts and tribunals?

Firstly by maintaining the highest possible standards. Both the Lexcel practice management standard and ISO9001 quality management systems standard require accredited practioners to maintain databases of suppliers. The Lexcel standard requires practices to have a policy in relation to outsourced activities, which must include, among other things, procedures to check the quality of outsourced work, steps taken regarding protection of information, and a list of all service providers. For Wessex ISO 9001 mirrors the Lexcel standard, and requires them to evaluate and select their suppliers, translators and interpreters, based on their ability to meet our established criteria. Wessex therefore need to be equally rigorous as regards their selection and evaluation criteria.

But professional standards, however rigorously applied by the legal practitioner contracting Wessex’s services, and by Wessex itself, cannot reduce the stress involved when a translation is needed or an interpreter required.

Standards will or should undoubtedly increase or assure quality, but Wessex can help in other ways too. They can offer telephone interpreting when such a system does not encroach upon communication. Charged by the second, a telephone interpreter can be booked in real time and really only requires a speakerphone and a quiet office. Telephone interpreting is not suitable for every scenario, and there is a learning curve, but no more than when using a face-to-face interpreter, whilst costs are reduced considerably, with no adverse effects on quality of communication.

When document translation is needed Wessex can also use translation memory, software that enables them to analyse the text for duplications (matches or near matches), sometimes together with archive material from earlier translations on the same case, reducing the actual number of words that need translation, whilst increasing consistency and turnaround.

Wessex search the internet and the EU-Lex database which provides free access to EU legislative texts and other public documents, including translations that are already in the public domain. Sometimes they have been able to tell their clients that complete translations already exist, removing the need for any expenditure at all.

Legal work does not yet lend itself to 100% machine translation, although Wessex are always happy to provide one free of charge to help clients decide on whether the expense of a human translation is really necessary. One day perhaps ‘MT’ may become the norm, making all translators redundant, but we do not see that happening any time soon! n Wessex Translations Limited www.wt-lm.com 0870 1669 300 sales@wt-lm.com

Surrey Lawyer 33

Employment

My Big “Fat” Unfair Dismissal Claim Helena Woodward-Vukcevic, Employment Solicitor at law firm Hart Brown, comments on the proposal that obesity may be classified as a disability.

Severe obesity may in future be classified as a disability under EU law, providing protection for employees who are morbidly obese from disability discrimination in the workplace.

UK courts have not yet recognised obesity as a disability, however, the statutory definition of disability set out in the Equality Act 2010 Section 6(1) states; A person (P) has a disability if P has a physical or mental impairment, and the impairment has a substantial and long-term adverse effect on his ability to carry out normal day-to-day activities.

In an unfair dismissal claim brought by Karsten Kaltoft a Danish child minder, against his local authority employer, Mr Kaltoft claimed that his weight was one of the reasons behind his selection for redundancy over non-obese colleagues.

The case has now been referred up to the European Court of Justice (ECJ). The ECJ was asked to consider whether EU law prohibited discrimination on the grounds of obesity and whether obesity could be a disability.

The ECJ’s advocate general, Mr Niilo Jaaskinen advising the Court, found that EU law did not prohibit discrimination specifically on the grounds of obesity. He stated that if obesity has reached such a degree that it hinders participation in professional life, and then it could be considered to be a disability. It was concluded that in cases of very severe obesity where someone has a body mass index (BMI) of more than 40, they could in fact be considered as being disabled. The Claimant in this case weighed more than 25 stones and had a BMI of 54.

Although the advocate general’s opinion is not binding it is usually followed by the court, whose judgments have force within the EU. The ECJ will now consider the case and we await the ruling.

If the case is successful, it could mean that discrimination claims could be brought against employers by those who consider that they were not offered employment because of their weight in addition to discrimination claims brought by employees who consider that they have been treated less favourably than their non-obese colleagues. Employers could soon have a responsibility to consider what support and adjustments they may be required to provide to severely obese employees to enable them to carry out their work. n

34 Surrey Lawyer

Property

Surrey Law Society – Index Editorial Like a naughty child in days of yore, today’s search agent should be seen but not heard, or so it seems to me anyway.

Our role is a very simple one; provide good, accurate information in a timely manner at a competitive price that allows the solicitor to win business also in the cutthroat world of legal conveyancing.

With myriad products available covering everything from contaminated land to Japanese Knotweed, and the choice to be made between the Council and a Regulated Search not to mention drainage and water. Hardly surprisingly then that conveyancing solicitors become glassy eyed at the prospect of deciding what information they need to best inform their client, as they are about to invest hundreds of thousands, if not millions today, in their new home.

And, if search agents are to be seen and not heard, it’s also a challenge for all of us on this side of the fence to promote our wares.

Here at Index, we have a very straightforward philosophy - keep it simple! The world of property conveyancing is a complex one and so making at least one part of the process easy to comprehend and deal with has got to be an attractive option.

Index has invested heavily in the technology and IT infrastructure that allows this to happen and solicitors that work with us recognise immediately the benefits that this brings.

The latest iteration of our online ordering platform puts information literally at the solicitor’s fingertips when they need it; doubling up as a genuine search case management system.

Quotes can be held, profiles stored for later review and all of the search products, after delivery, remain instantly available for future download.

Index will ultimately put product cards on the same case management system so that conveyancing solicitors can see, at a glance, the information that will be provided within a report and, therefore, benefit their clients when they are thinking about their most significant of investments.

At Index London South West, I have coined a strapline taken from a previous employer; “Think Of Us As Part Of You”. We recognise that conveyancing can be stressful and difficult but the simple philosophy behind Index is to support strongly everything that the solicitor does.

Like the naughty schoolboy, search agents should be seen and not heard and the Index online ordering and case management system gives all of the visibility that you would want of us, and no more! n Kevin Johnson

Expertise, across the field

As a busy legal professional, access to the latest market insight and information is crucial. Whether you need assistance with specific business issues, support with your day-to-day search requirements, or training and development for your teams, we are dedicated to helping our clients deliver the best possible service.

With regulation and compliance experts, the largest team of knowledgeable account managers, friendly trainers and the very latest news available from our website, you can rely on SearchFlow to keep you one step ahead.

Tell us how we can make your life easier.

Call 0870 787 7625 or visit searchflow.co.uk @SearchFlow

SearchFlow

making lawyers’ lives easier

“Having our bank manager on board is like having an extra partner.”

In my opinion, your bank should be part of your business. For us this doesn’t just stop at the day to day, we refer business to each other and organise joint social events outside work. It’s great to be able to pick up the phone and talk directly to our branch manager.

Tim Wright, Finance Director, Penningtons Manches LLP

0845 045 0900

* Visit our website or call 8am-8pm Monday to Friday to contact your local branch London . Birmingham . Brighton . Bristol . Cardiff . Edinburgh . Glasgow . Leeds Liverpool . Manchester . Newcastle . Nottingham . Wolverhampton

Our business is business banking

aibgb.co.uk

*IZaZe]dcZ a^cZh deZc [gdb -Vb"-eb BdcYVn id ;g^YVn! ZmXajY^c\ WVc` ]da^YVnh ^c :c\aVcY VcY LVaZh# 8Vaah bVn WZ gZXdgYZY VcY bdc^idgZY [dg hZXjg^in VcY igV^c^c\ ejgedhZh# 7I aVcYa^cZ XVaah id %-)* cjbWZgh l^aa Xdhi cd bdgZ i]Vc * eZcXZ eZg b^cjiZ# 8]Vg\Zh [gdb di]Zg hZgk^XZ egdk^YZgh bVn kVgn VcY XVaah [gdb bdW^aZh jhjVaan Xdhi bdgZ#6aa^ZY >g^h] 7Vc` <7 VcY 6aa^ZY >g^h] 7Vc` <7 HVk^c\h 9^gZXi VgZ igVYZ bVg`h jhZY jcYZg a^XZcXZ Wn 6>7 <gdje J@ e#a#X# V l]daan dlcZY hjWh^Y^Vgn d[ 6aa^ZY >g^h] 7Vc`h! e#a#X# ! ^cXdgedgViZY ^c Cdgi]Zgc >gZaVcY# GZ\^hiZgZY D[[^XZ .' 6cc HigZZi! 7Za[Vhi # 7I& (==# GZ\^hiZgZY CjbWZg C>%&--%%# 6ji]dg^hZY Wn i]Z EgjYZci^Va GZ\jaVi^dc 6ji]dg^in VcY gZ\jaViZY Wn i]Z ;^cVcX^Va 8dcYjXi 6ji]dg^in VcY i]Z EgjYZci^Va GZ\jaVi^dc 6ji]dg^in#

6>7&A?