Clockwise from left: Darren Galliford, branch manager of Handelsbanken in Exeter; Felix Medland of solicitors Ford Simey; steady on, son – sometimes the Bank of Mum and Dad is pretty stretched too. . .
NEED AN EXPERT? P i c k u p t h e p h one f o r more from our a dvi ce-gi ver s
Handelsbanken Full-service bank with a decentralised way of working and strong local presence 19 Southernhay West, Exeter EX1 1PJ 01392 494452; handelsbanken.co.uk/exeter Ford Simey Solicitors with offices in Exeter, Exmouth, Sidmouth and Honiton Senate Court, Southernhay Gardens, Exeter EX1 1UG 01392 274126; fordsimey.co.uk
However, whether it will be possible to ring-fence your contribution to the property and enable you to recoup it will depend on the needs of the parties, particularly any minor children, and the Court has discretion to ensure fairness, which may mean departing from the terms of any prenuptial agreement to the extent necessary to achieve that. Cartridges: A pre-nuptial agreement would not be something you could be a party to, so this is not really worth the potentially awkward conversations it would be likely to trigger in the family. I would suggest they have a declaration of trust drafted. This will show the amount paid towards the purchase price by both parties and any other individual, and the shares in which they hold the property, and will secure their individual shares in the event of one of the parties dying. In terms of protecting my children’s future assets, what’s the best age to sign over all my wealth? Should I do it as soon as I hit, say, 75, or wait until I become ill? Cartridges: We would never suggest ‘signing over your property’ or other ‘assets’. If you relinquish the legal rights in your property, there is no 24 I EXETER LIVING I www.mediaclash.co.uk
legal entitlement to have these returned in the future. By doing this, you are therefore losing any financial security and choices over how the property is dealt with. Many people look at this as a way of reducing the value of the estate for Inheritance Tax (IHT) purposes, or for reducing any amount which can be considered for care home fees. The government has means by which they can look into the reason why a property has been ‘signed over’ and, if it is considered primarily to be to avoid care homes fees or IHT, any transfer can be reversed. Crosse & Crosse: It is only ever advisable to pass on wealth to the next generation to the extent that you are sure that you will not need to have access to the funds yourself. If you do have spare cash or assets, for inheritance tax savings to be obtained it is better to make gifts before you become ill since you need to survive for seven years for the sums to fall outside of your estate. Also, as part of overall estate planning, you should consider certain trust-based investments, which save inheritance tax. An independent financial advisor would be able to advise in that
Crosse & Crosse Proving legal advice on all aspects of law 14 Southernhay West, Exeter EX1 1PL 01392 258451; crosse.co.uk Cartridges Exeter solicitors with strong roots in local community 46-47 Cowick St, Exeter EX4 1AP 01392 256854; cartridgeslaw.co.uk
Also standing by to help, in an office near you: Legal WBW Solicitors: wbw.co.uk Gilbert Stephens: gilbertstephens.co.uk Financial Hawksmoor Investment Management: hawksmoorim.co.uk Seabrook Clark: seabrookclark.co.uk Investec: investec.co.uk Old Mill Accountants: oldmillgroup.co.uk