For the most part, an LPA is used to protect someone (the “Donor”) in the event they lose the ability to speak and act for themselves – this can be because of an accident, degenerative illnesses or losing mental capacity. You can arrange an LPA for property and financial affairs, or your medical affairs, or both.

The fee for each legal document has stood at a reasonable £82 for years. However, the Office for the Public Guardian (OPC) recently raised this figure. But why have LPA costs increased all of a sudden? And what does it represent for those seeking to appoint a Lasting Power of Attorney in the coming months?

If you fall into this category, St Helens Law is here to help. Our Lasting Powers of Attorney solicitors are highly experienced and well-equipped to answer any queries you may have before moving forward with an application. Contact a member of the team today for more information, or keep reading to learn more.

How Much Does Lasting Power of Attorney Cost?

As of November 17th 2025, the new fee for a Lasting Power of Attorney application is £92. This is a rise of £10 from the previous figure.

Why are Lasting Power of Attorney Costs Increasing?

Just like any other government body, the OPG needs to cover enough costs to keep its operations active. As demand increases or internal changes are made, prices can be changed to reflect this.

It’s not always precisely clear why these increases happen when they do. But, in this case, we have a pretty good idea…

The government has been discussing moving towards a fully digital LPA system for several years now. This will move the entire LPA application process online and would remove one of the most awkward and time-consuming elements of the process: having witnesses prove their identity and sign the documents in person.

Not only would this save time, but it may also help those applying for LPA avoid costly errors.

Why are LPA Forms Rejected?

Should any mistake be made on any LPA form during the application process, it can be rejected by the OPG, meaning applicants would need to start all over again. On top of this, they need to pay a resubmission fee (formerly £41, now £46).

To make matters worse, the most common causes of these rejections usually aren’t anything complicated:

• Signing Order: The process requires a precise sequence of signatures. The Donor (the person setting up the LPA) must sign first, then the Certificate Provider, and the Attorneys sign last. If you don’t sign in the correct order, the application will be rejected automatically.
• Clerical Mistakes: Rejections often stem from simple administrative errors, such as a misspelt name, an outdated address, or forgetting to include a date or signature on a required section.
• Correction Method is Key: If you make a mistake on the paper form, you must correct it properly. This means crossing out the error cleanly with a single line and writing your initials next to it. Never use Tipp-Ex or a pencil, as this is grounds for rejection.

With over 50,000 LPA rejections due to mistakes in the 2023-24 period, this represents upwards of £2,300,000 in unnecessary secondary payments that people could have avoided by simply using the services of an experienced LPA solicitor, like St Helens Law.

When is LPA Moving to an Online Service?

The Powers of Attorney Act 2023 outlined the government’s digital LPA plans, but as of yet, no formal announcements have been made. So keep an eye on news reports, or speak to one of our experts if you have any questions.

But if you feel like you should wait for the digital platform to be brought in to make the whole process easier, you should not delay. The longer you wait, the more you’re putting yourself at risk should the unthinkable happen, and you could lose the ability to make your own decisions by not appointing a trusted friend or relative to act on your behalf.

Worried the forms are too complicated? That’s what we’re here for. Get in touch with a member of the St Helens Law team today, and we’d be happy to take the burden off your shoulders.

Does Everyone Pay Full Price for LPA Applications?

No, there are some instances where you may be able to apply for Lasting Power of Attorney at a heavy discount, or even completely free.

If the person setting up the LPA received certain means-tested benefits, they may be able to apply via a fee exemption, meaning they won’t pay a penny. The means-tested benefits listed on the official GOV.UK website includes:

• Income Support
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Guarantee Credit element of Pension Credit
• Housing Benefit
• Council Tax Reduction/Support
• Local Housing Allowance
• A combination of Working Tax Credit and at least one of the following: Child Tax Credit, Disability Element of Working Tax Credit, or Severe Disability Element of Working Tax Credit.

If the donor’s gross annual income before tax is less than £12,000 per year, they automatically qualify for a 50% reduction in price.

So be sure to check your eligibility for any of the above before you make your applications.

Wondering How to Apply for LPA? Speak to St Helens Law

If you’ve never dealt with them before, Lasting Power of Attorney forms can feel incredibly confusing, and it seems as though there are a ridiculous number of hoops you need to jump through just to give yourself the peace of mind you deserve.

That’s why it’s always wisest to appoint the services of a trained, reliable LPA solicitor – and our Lasting Power of Attorney service team is ready and waiting to help. With decades of combined experience amongst our staff, you can be sure that your LPA will be formalised, completed and legally-binding as quickly as possible and completely mistake-free. We’re also experts in probate, wills and several other areas of family law.

Get in touch with St Helens Law today to get started.

The post Why are Lasting Power of Attorney Fees Going Up? appeared first on St Helens Law.

According to the NHS Resolution’s Annual Report 2023/24, only 52% of claims made received a financial payout. This figure may sound low, but it’s even more concerning when you learn that, just a couple of years earlier, the figure sat at a measly 48%.

If you feel you’ve been treated poorly by the NHS or a healthcare professional and want to explore your legal options, at St Helens Law, our specialist team of clinical negligence solicitors and compensation experts is here to guide you through the process, maximising your chances of a successful claim. Get in touch with a member of the team to start your journey today, or keep reading to learn more.

Why So Many Medical Negligence Claims Are Unsuccessful

Time Limitations

This is one of the most common ways clinical negligence claims fail, which is a dagger through the heart for many, as it’s also one of the most avoidable.

Generally, you have three years to file a clinical negligence claim, though this statistic also comes with its own strict rules. The countdown usually begins from one of two points:

• The date the negligent act occurred. Or…
• The “date of knowledge” from which you were aware that something was amiss in your medical care. This can become very complicated in cases where there is a significant time gap – i.e. misdiagnoses or delayed issues from surgical errors.

Whether or not your circumstances warrant a claim, if you miss this three-year window, you lose the opportunity to make one. In this instance, the phrase “slow and steady wins the race” may actually lose you the race, so be sure to act promptly and seek legal representation as soon as possible.

Insufficient Evidence/ Weak Expert Support

If you’re making a claim, it’s the responsibility of you and your legal team to prove beyond doubt that two things occurred:

• The care you received was negligent. And…
• This negligence caused you harm.

Without sufficient evidence backed up by expert opinions, your claim has little to no chance of being successful. This is why it’s so important to arm yourself with a team of legal specialists experienced in winning such cases, like St Helens Law.

It’s our job to gather the medical records and evidence, and to produce a strong, non-contradictory and ironclad argument that displays the negligent care you received in the greatest detail, to produce a winning result.

Causation

This is yet another hurdle that many cases fail to overcome. Your negligent treatment may be proven by your team. But there is also a responsibility for you to prove this specific treatment is what led to you sustaining physical or mental harm.

In other words, had the negligent treatment not occurred, would you still have suffered harm or not? If the answer is yes, and you cannot link one to the other, there is no direct causation, and you likely don’t have a case.

But if you’re able to prove that the negligent care you received was the direct cause, you’re in a promising position from a legal standpoint and should pursue your claim.

A Powerful Defence

Despite their position as providers of good health and recovery, medical service providers (including both the NHS and private firms) still pay excessive legal fees for teams to work on their behalf and defend them against scrutiny.

These are often lawyers with years of experience and those who specialise in the medical field, turning it into a real battle of wills, wits and evidence in clinical negligence claims.

Unfortunately, this means that even if you have a rock-solid claim, the other side still has a chance at success due to savvy legal techniques and exceptional knowledge of how to “play the system.”

To counteract this, you should side with clinical negligence solicitors who are equally experienced and committed to a successful outcome, like the team at St Helens Law. 

Rejected Settlement Offers

Surprisingly, it is still possible to lose a claim for medical negligence even if the opposing side offers you a settlement to keep you satisfied.

Let’s say, for example, you make a claim against the NHS for negligent treatment, and they offer you a settlement figure. What if you reject that figure because you think it’s too low?

Well, if the case goes to court and the case is not found in your favour, you’ll walk away with nothing, leaving you in an even worse spot than before.

What Can You Do After an Unsuccessful Medical Negligence Compensation Claim?

If your claim didn’t go the way you hoped or was thrown out, don’t panic right away. There might be a route to challenge it, like an appeal or a judicial review, depending on why it failed in the first place.

If the claim does fail, the most important thing is to act fast and get a second opinion. A fresh set of eyes from a specialist solicitor (like the team at St Helens Law) can quickly figure out if the initial failure was due to something fixable (maybe a weak expert report?) or if there’s a serious, fundamental problem with proving that the negligence actually caused your harm.

Give Yourself the Best Shot at a Successful Clinical Negligence Claim with St Helens Law

Feel like the medical care you received was subpar and want to make a claim? Or perhaps you underwent a specific procedure and want to make a surgical negligence claim? St Helens Law is on your side.

Our medical negligence solicitors will listen intently to your story, determine whether you received substandard care from your healthcare provider, and offer our professional opinion on how much compensation you may be entitled to. This includes both medical treatment offered by the NHS and private treatment.

Whether you’re looking for more information on medical negligence cases, the consequences of medical malpractice, the claims process in general, legal costs and more, we’re here to give you all the knowledge you need.

Get in touch with a member of the team via the form below, and we’ll be back in touch shortly.

The post Why Would a Clinical Negligence Claim Fail to Pay Out? appeared first on St Helens Law.

If you believe a will is invalid, it’s crucial to act quickly. Applying for a caveat prevents the estate from being distributed while the validity of the will is investigated. The sooner you apply, the stronger your position may be. Common issues include:

• Whether the document was genuinely the deceased’s will, or prepared by someone else and signed under pressure.
• Whether the will was properly executed.
• Whether the witnesses were legally valid and eligible.

These are just a few of the grounds on which a will may be contested.

When There Is No Will

If no will exists, the law decides who the administrators are and who inherits the estate. However, administrators do not always carry out their duties properly. If this happens, their actions can be challenged through the Courts.

Financial Provision Claims

Even if there is a valid will, close relatives — or those treated as such — may still be able to make a claim for financial provision under the Inheritance (Provision for Family and Dependants) Act 1975. These claims must be brought within six months of probate being granted. Importantly, financial provision claims can also be made where there is no will, provided the claimant was financially dependent on the deceased.

For more information contact St Helens Law at 01744 385171 or fill out our consultation form.

The post Challenging a Will or Estate: What You Need to Know appeared first on St Helens Law.

When someone we love passes away, it is naturally a distressing time. This distress can be intensified when probate begins, whereby the deceased person’s estate must be distributed according to their will. 

Sadly, though, this isn’t always a smooth process, with countless variables that could lead to someone disputing a will or the results of probate.

If you believe the instructions of a will have not been followed in accordance with your loved one’s wishes, or in accordance with the law, you’re entitled to seek out a contentious probate solicitor.

At St Helens Law, we specialise in will and estate disputes, and can help you gain the clarity and justice you deserve in contentious probate issues, on behalf of those who are no longer with us. Speak to one of our expert solicitors today, or keep reading to learn more.

What is contentious probate?

Contentious probate (also known as probate litigation) is the act of challenging the way probate and the distribution of assets have been handled. Though the term can be applied to any legal disputes that arise in the wake of someone’s passing with regard to cash, assets and estates.

The most common element to be disputed is the will, in which someone – usually a family member – suggests the will is not valid (more on this in a moment) or that the assets have not been fairly distributed.

Contentious probate solicitors are probate specialists who work for you to gather evidence, advise on your legal rights, communicate with the parties involved, resolve disputes and negotiate on your behalf in estate administration. Should the issues remain unresolved, they can represent you in court, too.

You’re also able to raise a dispute if you feel you have not been adequately provided for in a person’s will, with no reasonable financial provision, or if you have been left out entirely and feel you have a rightful claim to the deceased’s estate. Because these cases relate directly to the Inheritance Act 1975, it’s essential to seek out specialist solicitors like us.

How can contentious probate solicitors help?

Here are just a few scenarios in which hiring the services of a contentious probate solicitor would be a wise move:

Challenging will validity and interpretations

As mentioned above, challenging the validity of a will is the most common reason probate is contested.

If you believe a will was made while someone was not of sound mind – for instance, the person may have been suffering from a mental or physical disability that impaired their judgement – you’re well within your rights to challenge it.

On top of this, if you feel the wording within a will is unclear or has been misinterpreted, this is also grounds for contesting it.

Undue influence concerns

A will must be made freely and without pressure from third parties. Unfortunately, this is not always the case, and someone may attempt to have a will changed in their favour.

During probate, if you feel someone has been unjustly awarded a large portion of an estate, or even the whole estate, and you are suspicious of the circumstances surrounding this decision, you should raise concerns.

Beneficiary disagreements and inheritance disputes

When there are multiple beneficiaries, there is always the potential for conflict when one party feels another should not have been named in a will, or should not have been awarded the level of assets they received.

Unsuitable executors

Executors are responsible for ensuring probate is followed per the deceased’s will. In most cases, the deceased party will have named someone they feel would act in their best interests.

However, whether through incompetence or acting for their own gain, executors are not always suitable for the task they’ve been given.

If you’re concerned that an executor is not acting responsibly through probate, and they are not willing to hand over responsibility to someone more appropriate, you should speak to a solicitor who will raise the issue officially with the probate registry.

Fraud and forgery claims

It may sound like something out of the movies, but there are instances where wills can be forged so that probate favours one or multiple individuals over others.

Contentious probate without a will

Contesting probate often involves the reading and interpretation of someone’s will, but what if the person in question left no will? This is where intestacy rules come into play.

This makes the situation even more complicated, as a family member or close friend will need to be assigned as an ‘administrator’ to the deceased’s assets in lieu of a will, which opens the floodgates to disputes before the dispersal of assets has even begun.

In these cases, you may believe the wrong person, or someone who does not have the best interests of the deceased at heart, may have been assigned administrator or is attempting to become the administrator. Or this process may have already been completed, and you wish to dispute how assets are or have been handled.

In either scenario, it’s the job of a contentious probate solicitor to help you.

How much does contentious probate cost?

Because every case is different, there is no boilerplate figure on what you can expect to pay to hire a contentious probate lawyer.

To find out more about the legal costs surrounding contentious wills and probate, and discuss your concerns in greater detail, give us a call today.

Need to make a contentious probate claim? St Helens Law is here for you

If any of the above is sounding familiar and you’re worried a loved one’s assets are or have been wrongfully distributed, rest assured that the specialist lawyers at St Helens Law understand just how much contentious probate matters.

With many years of experience dealing with wills, probate and contentious probate disputes arising as a result, we’re your ideal partner to offer practical advice and have such issues resolved swiftly in your favour. Even if court proceedings need to begin.

Whether you’re seeking rightful inheritance provision for family, wish to have alleged undue influence or trust disputes investigated, or are simply seeking the best legal advice in an inheritance claim, we’re the ones you need on your side.

To find out more, speak to the contentious probate team at St Helens Law today.

The post What Do Contentious Probate Solicitors Do? appeared first on St Helens Law.

You’re about to go away for a few weeks. So you decide to lend a spare key to a trusted friend, asking them to visit your home once in a while – to check the mail, water the plants, take out the bins, etc. – until you’re back. That’s a bit like a power of attorney (POA).

But what if the trip was indefinite?

You might then give your friend their own set of keys to keep, granting them ongoing authority to access your property whenever they see fit. That’s a bit like a lasting power of attorney (LPA).

Essentially, both are legal documents that provide a safety net for you and your family, helping you stay in control of your life – no matter what the future has in store. But the right one for you will depend on your specific circumstances and what you’re hoping to achieve.

To help you choose, here we take a closer look at each and explore how our specialist solicitors can help you take this crucial step and ensure you’re prepared for all eventualities.

Two options – ordinary or lasting

In England and Wales, there are two main types of power of attorney.

Both of which involve one person (the donor) giving another person (the attorney) the right to make decisions on their behalf. And both of which can only be set up if you still have ‘mental capacity’ and the ability to weigh up information for yourself.

1.     Ordinary power of attorney

This is a time-limited agreement.

It gives the attorney authority to act on your behalf, standing in and handling matters relating to your finances, assets, property and investments – but only for a set period of time.

As such, it can be a useful option if you need someone to make decisions for you temporarily. Perhaps, for example, because you’re recovering from an injury or going on an extended overseas trip. Or maybe because you’re finding it difficult to get to the bank at the moment.

You can set a date for when the POA starts and ends and choose whether to give the attorney full or partial control of your finances – potentially restricting it to specific activities.

An ordinary POA doesn’t need to be registered with the government. But if you were to lose mental capacity in the future, the document expires and is no longer valid. This means it may not be suitable if you need someone to manage your affairs when you can no longer do so.

2.    Lasting power of attorney

An LPA is the most common form of power of attorney in the UK.

As an ongoing arrangement, it has no expiry date. You can choose for it to start immediately, or it can take effect from the point at which you lose mental capacity (e.g. due to an accident or illness), and it allows the attorney to make decisions on your behalf indefinitely.

There are two subtypes of LPA:

• Property and financial affairs LPA

This gives the attorney power to make decisions about your money and property, including managing bank accounts, paying bills, collecting a pension, selling your home, etc.

• Health and welfare LPA

This gives the attorney the power to make decisions about your living situation, daily routines, medical care etc. and can only be used once you’re unable to decide for yourself.

Most people will set up both of these at the same time. And for them to be valid, they need to be registered with the government, through the Office of the Public Guardian (OPG).

Struggling to spot the difference?

POAs and LPAs are very similar, but there are a number of subtle differences between the two – which means one is usually better suited to a person’s situation than the other. These differences include:

1. Timing

A POA is effective immediately (or from the date specified) and remains valid until either it expires, or you lose mental capacity as the donor – in which case authority is automatically revoked.

An LPA is also effective from the chosen start date, but lasts until you either decide to revoke authority or die. It’s still valid if you lose mental capacity.

• The scope of decisions

POAs relate specifically to decisions about your finances. They can be kept quite general (i.e. you can grant broad authority for all financial matters), or you can choose to be more specific, limiting authority to certain tasks – such as paying your electric bill, selling a car etc.

By contrast, LPAs can relate to financial decisions, health and welfare decisions – or both.

• Registration

An LPA must be registered with the government, via the OPG, which can take up to 20 weeks to complete. To be valid, a POA doesn’t legally need to be registered – although some places may ask to see a copy for their own verification purposes.

What is an enduring power of attorney (EPA)?

If you’ve done your research well, this is a term that’s likely to have popped up.

Essentially, EPAs were replaced by LPAs on 1^st October 2007.

They served a very similar purpose, except, they could only be used in respect of financial decisions. And since this cut-off date, no new EPAs have been created. So if you’re only just taking the first step and looking to set up a new power of attorney, they’re not relevant.

EPAs created before 2007, however, are still legally binding. They can be used to make decisions regarding the property and financial affairs of the donor. And if the donor still has mental capacity, they can be used without being registered with the OPG.

If the donor lacks capacity, the EPA must be registered to be used.  

Contact our power of attorney solicitors

POA or LPA.

Know which is the right decision for you?

Or maybe you’d like further information and tailored advice on the matter?

Either way, our specialist power of attorney solicitors can help.

Here at St Helens Law, we’re highly knowledgeable and experienced in this area of the law. Our wills and probate team can assist with everything, from identifying which option is best for your circumstances to selecting the right attorney and accurately reflecting your wishes.

The relevant application forms can all be found online – so technically, you don’t need a solicitor to appoint a power of attorney. But by guiding you skilfully through the registration process, we can help you avoid the most common stumbling blocks – preventing any unnecessary hold-ups and ensuring your chosen document is registered as quickly and seamlessly as possible.

If you’re still feeling unsure about the difference between a power of attorney, lasting power of attorney and enduring power of attorney, or have any questions, please don’t hesitate to contact us. You’re welcome to call us at any time on 01744 385171. Alternatively, send an email to info@sthelenslaw.co.uk and we’ll get back to you with further information.

You can also request a free consultation with ourpower of attorney solicitors – with no obligation to go ahead – by filling out the enquiry form at the top of this page.

The post What’s The Difference Between a Power of Attorney And Lasting Power of Attorney? appeared first on St Helens Law.

It was controversial to say the least, especially with respect to inheritance tax (IHT). A broad suite of changes has been made, which are predicted to have a significant impact on estates, personal pensions and family businesses across the country.

Managing IHT already requires a substantial amount of forward planning. But with the introduction of these new rules, more people are likely to be facing inheritance tax liabilities and will need to take a closer look at their financial situation.

Will you be affected?

Here we discuss the details of the changes in further detail and explore how our wills and probate team may be able to help.

New rules for inheritance tax

Introduced as part of the Autumn 2024 budget.

1.     Caps on agricultural and business property relief

This is, by far, the change that has received the most attention.

Currently, if a claim for agricultural and business property relief is successful, 100% of the value is exempt from IHT. But from April 2026, only the first £1,000,000 will receive this 100% relief. Anything above this threshold will then be limited to 50% relief from inheritance tax.

The impact of this alteration has been a matter of contention in the media.

Based on HMRC data, the government has forecast that out of 1800 estates per year claiming relief, around 500 (29%) will potentially pay more IHT – which is a relatively small number.

However, according to the National Farmers’ Union, this is an underestimation. Citing figures from the Department for Environment, Food and Rural Affairs, they argue that approximately two-thirds of farms are worth over £1,000,000 and will therefore face a higher IHT liability.

There could be several reasons for this discrepancy, without either being technically incorrect. What is certain, though, is that at least some farms and family businesses will be affected.

2.     Frozen nil rate bands until 2030

The inheritance tax nil rate band and residence nil rate band were set to increase – in line with inflation – in 2028. However, as part of the latest budget, it was announced that these thresholds will remain frozen (at £325,000 and £175,000, respectively) until 2030.

As asset values continue to rise, unfortunately, this change is likely to cause ‘fiscal drag’ – bringing many more estates within the scope of inheritance tax.

3.     Unused pension funds liable for IHT

Another controversial change to inheritance tax.

From April 2027, unused pension funds and lump sum death benefits that are payable from registered pension schemes – including both defined contribution schemes and some defined benefit schemes – will potentially be subjected to inheritance tax.

The government are consulting on the process of how this will be calculated, and further information is due to be released in January 2025. But whatever the specific details, this change will likely add a significant amount of IHT liability to many family estates.

4.     Reduced relief on AIM and unlisted shares 

Following this latest budget – starting from April 2026 – inheritance tax relief for Alternative Investment Market (AIM) shares will also be reduced from 100% to 50%. And unlike agricultural relief, AIM shares will not be eligible for the same £1 million tax-free threshold.., send an email to info@sthelenslaw.co.uk and we’ll respond as soon as possible.

The post Inheritance Tax Changes – Have You Been affected? appeared first on St Helens Law.

That’s a lot of money missing. And somehow, the issue needs to be addressed.

Staying true to their word, Labour has officially ruled out raising taxes on working people – including VAT, income tax and national insurance. But so far, they’ve been very tight-lipped regarding their plans for inheritance tax (IHT).

Their general election manifesto was incredibly vague on this topic, simply stating that Labour will ‘end the use of offshore trusts to avoid inheritance tax’. And since being elected earlier this year, there’s been no indication whether IHT reform is on the cards or not.

One thing is for sure, however – IHT is a big source of revenue for the treasury. It raked in £7.5bn in the last financial year alone (ending March 2024), and could be an easy way for the government to (at least in part) plug the black hole and commit to their spending pledges.

As such, there’s been wide speculation on this topic – with many experts believing that one or more inheritance tax changes could be launched this autumn.

Here we take a brief look at what those changes could be.

Potential IHT changes currently on the rumour mill

1. Curbing inheritance tax relief

To help plug the deficit, Reeves has said she will look at ‘every single tax break’. And this could signal changes to Business Property Relief (BPR) and Agricultural Property Relief (APR).

Currently, a person can claim up to 100% tax relief on the inheritance of a company, shares or agricultural land (if it’s being actively farmed). This allows family-owned businesses to continue to trade following the death of the owner – without the worry of a hefty IHT bill.

It’s unlikely for this relief to be scrapped entirely, but a few changes could be in the pipeline.

Plans thought to be in consideration include:

• capping BPR and APR at £500,000 per person
• increasing the level of business activity required to qualify for relief, from 50% to 80%
• introducing a new system in which IHT is spread over 10 years

Of course, at this stage, such changes are pure speculation. But it’s easy to understand how – if they were to be implemented – they could have a significant impact on thousands of SMEs. Particularly those whose business or farm is their main asset and livelihood.

If relief is restricted, many may be forced to sell or wind up business just to pay the IHT bill.

• Abolishing relief on unquoted shares

At present, there are also tax allowances in place for unquoted shares – which are shares in a business not listed on the stock exchange or listed on the Alternative Investment Market (AIM).

These allowances have garnered some negative press in recent months.

Investing in such shares has become an increasingly popular strategy to avoid inheritance tax – allowing people to move assets in a way that reduces their bill, or eliminates it entirely. As a result, it could be an area that’s targeted in the upcoming budget.

• Adding pension pots to the mix

Pension savings are currently exempt from inheritance tax.

But unfortunately, that might be about to change.

Rumours indicate that Labour could seek to include pension pots as part of the taxable estate after death. They may also announce changes to spousal exemptions and/or introduce a new personal nil rate band (i.e. the maximum amount that can be inherited without paying tax).

All of which could potentially push more families into the ‘IHT net’ – either presenting them with a bill they wouldn’t have previously had, or increasing how much inheritance tax is owed.

• Higher IHT rate

One of the simplest reforms proposed, but one that would have a notable impact.

At the moment, the standard IHT rate is 40% of anything above the inheritance tax threshold of £325,000. However – to help redistribute wealth and increase inheritance tax receipts even further – there’s a strong possibility that Labour will increase this rate during the budget.

Could we help with your IHT planning?

The likelihood is, inheritance tax reform of some kind is on the horizon.

It’s hoped that any significant changes will be introduced through consultation this autumn, allowing more time for people to plan their future finances. But whatever happens between now and the October Budget, it’s worth getting to grips with some of the basics.

For example, you should ask yourself:

• Would you be affected by inheritance tax?
• Who do you want to benefit from your assets?
• Could you afford to gift assets at present?
• Do you have an up-to-date will?
• Have you discussed plans with your family or a solicitor?

With so many rumoured changes, now is the time to act. It may be that some simple forward planning could help to reduce the IHT bill due on your estate – or avoid it altogether.

Here at St Helens Law, we’re unable to provide financial advice on this matter.

However, we do have a team of experienced inheritance tax solicitors who can offer legal advice on IHT planning and the organisation of your estate – ensuring that as much inheritance as possible goes to your loved ones, and minimising the amount that goes to the tax man.

We can also assist in the writing of a will – a key part of inheritance tax planning – with both professional will drafting and online will services available to suit your preferences.

If you’re concerned about IHT, particularly with respect to the proposed inheritance tax changes and how they might affect you, why not book a free consultation with our wills and probate team? Simply fill out the form at the top of the page and we’ll get back to you with further information.

Alternatively, if you have any questions about inheritance tax planning, please don’t hesitate to contact us. You can give us a call at any time on 01744 742350 or send an email to probate@sthelenslaw.co.uk.

The post Rumoured reforms to inheritance tax appeared first on St Helens Law.

This decision has been perceived by some as a strategic move in the run-up to next year’s elections, possibly hinting at future changes that could benefit wealthier individuals in the Spring.

Surge in Inheritance Tax Receipts

A notable increase in inheritance tax receipts was observed, with a 12% rise from last year.

The figures reached £4.6 billion in the first seven months of the 2023/24 Financial Year. This was higher than the previous year’s total of £4.1 billion for the same period.

This trend suggests a potential record-high collection by the end of this year, which will have a significant impact on the UK’s economy.

Impact on Estate Planning

The ongoing uncertainty around inheritance tax has unsurprisingly influenced countless estate planning decisions.

Many individuals have expressed reluctance to make long-term commitments, as seen in various discussions among practitioners on social media platforms.

Pension Reforms and Implications

The UK government has declared a significant increase in the state pension by 8.5%, which means that starting in April 2024, pensioners will receive £221.20 weekly.

Alongside this, the government is considering a major reform: the creation of a ‘lifelong pension pot’.

This idea involves merging an individual’s pension savings into a single account, regardless of their job changes. This proposed change aims to simplify pension management for savers and enhance their financial outcomes.

Key Goals of the Pension Reform Package

The planned pension reforms are designed to revamp the entire pension system.

The key objectives of these reforms are:

• Improving Pension Outcomes: Ensuring pension savers get the most benefit from their investments.

• Strengthening the Gilt Market: The goal is to create a more stable and varied market for government bonds (gilts), which are critical for pension funds.

• Boosting the UK’s Financial Standing: These reforms are intended to solidify the UK’s reputation as a leading global financial centre.

These initiatives are part of the Chancellor’s broader efforts to reform the UK’s financial markets, making it an attractive destination for business and investment.

Comprehensive Legal Support

At St Helens Law, we recognise the intricacies and challenges that come with understanding and adapting to the latest inheritance tax and pension reform regulations.

Our dedicated team of legal experts is committed to keeping up to date with every shift in legislation and policy.

This commitment enables us to offer you the most current and strategic advice, ensuring that your financial and legal decisions are both informed and effective.

Our experienced wills and probate solicitors specialise in creating customised estate plans that align with your unique circumstances and goals.

We offer a range of services, including drafting wills, preparing powers of attorney, and advising on tax-efficient ways to pass your assets to your heirs.

Get in touch

Contact us today with any questions or concerns you may have about inheritance tax or estate planning.

You can give us a call on 01744 385171 or send us a message using our online contact form for a swift response from our helpful team.

For advice and information on the topics mentioned in this blog discuss this with an accountant or IFA. If you require one, we would be happy to refer. We do not provide financial advice, only legal advice.

The post No Changes to Inheritance Tax – Yet appeared first on St Helens Law.

Not a pleasant thought; but life is unpredictable. There’s always a risk that you could have a severe accident or develop an illness that leaves you debilitated. If you lost your mental capacity, who would make the crucial choices – regarding finances and health – on your behalf?

This is where a lasting power of attorney (LPA) comes in.

A rising number of registered LPAs

An LPA is (by far) the simplest way to plan for the future.

Essentially, it’s a legal document that allows you to appoint someone you trust to make decisions and manage your affairs – if or when you can no longer do so for yourself.

Over the last few years, LPA registrations in the UK have been worryingly low. Research has found that only one in three ‘baby boomers’ have selected a power of attorney – and according to official figures, less than 1% of the overall population has an LPA in place.

However, it looks like things are now starting to improve. New data released by the Ministry of Justice has revealed that the number of LPAs registered in the first quarter of 2023 is up by 33% – compared to the same period last year. And approximately 270,000 LPAs were registered between January and March alone.

Perhaps, in a post-pandemic world, people are starting to realise the importance of future planning? Maybe this increase is due to the increased publicity for LPAs? Or because application processing times have finally started to reduce (with most now completed in under 18 weeks)?

Whatever the reason, it’s welcome news.

If you’re yet to join the thousands of people who have taken this crucial step, now is the time – and here at St Helens Law, our wills and probate team is on hand to help.

Do I need a power of attorney?

The short answer is yes, probably. LPAs aren’t reserved for the elderly and those in poor health. Realistically, countless scenarios in life could lead to the loss of your mental capacity.

For example, common illnesses such as cancer, heart disease and strokes can all – sometimes very suddenly – make us dependent on other people. More than 900,000 people in the UK have dementia, which is predicted to rise to more than 1.6 million by 2040. And as for accidents, someone is admitted to hospital every 90 seconds in the UK with a brain injury.

The bottom line is – your current age and health are irrelevant.

You certainly shouldn’t wait until later in life, or when your mental capacity has already started to deteriorate, to appoint a power of attorney. In fact, by then, it’s too late. LPAs can only be registered whilst you’re of sound mind – which means it’s always better to act sooner rather than later.

What will happen if I don’t appoint a lasting power of attorney?

A commonly held misconception is that the responsibility would automatically fall to your next of kin. That’s a logical assumption; but unfortunately, it just isn’t the case.

If you lose the ability to make decisions and haven’t created an LPA:

• A deputy will be selected on your behalf

In the eyes of the law, you may no longer have the mental capacity to choose who makes your decisions going forward – so this becomes the responsibility of the Court of Protection.

They will appoint a ‘deputy’ to make any financial, health or welfare decisions on your behalf, which will usually be a solicitor or accountant. Certainly not someone you’re likely to have chosen yourself.

• You won’t have control over your future

One of the main benefits of an LPA is that it allows you to have a say in your future.

You can leave instructions for your power of attorney, such as which care home you’d prefer, which treatments you’d like, how much you’d like to pay towards your child’s university fees, etc. These can even be legally binding, so you can feel confident that any decisions made reflect your wishes.

However, without an LPA, these crucial decisions become the responsibility of a stranger. Someone who doesn’t know you as a person or what you would have wanted in those circumstances.

• Your family or friends might have to go to court

To make any decisions on your behalf, your loved ones would have to apply for a ‘deputyship’ at the Court of Protection. Not only does this cost more than an LPA (£365 plus fees), it can take up to 3 months to complete – often causing a lot of additional stress at an already difficult time.

Until deputyship is granted, they would also be unable to gain access to your bank accounts – which means, they may struggle financially to keep up with the mortgage or pay other essential bills.

What type of decisions can a lasting power of attorney make?

There are two types of power of attorney, which cover two distinct areas:

1. A property and finances LPA

This gives your attorney the power to make decisions regarding any properties you own and all financial matters, such as paying bills, managing bank accounts and investments, collecting any benefits or a pension, buying, selling and maintaining property, giving gifts on your behalf, etc.A health and welfare LPA

2. A health and welfare LPA

This allows your attorney to make decisions regarding your day-to-day health and medical treatment, plus your personal welfare. It covers things such as where you live, what happens to your pets, whether you accept medical treatment to keep you alive beyond a certain point, etc.

It’s important to note, neither of these LPAs will give your chosen person total control over you.

Whilst you still have mental capacity, your attorney must act solely on your instructions – and you can cancel the LPA at any time. In the original legal document, you can specify exactly which decisions you’re happy for them to make – and those which they can’t. And if you do lose your mental capacity, they still have to involve you as much as possible in any decisions.

By law, your attorney cannot pay themselves a fee (unless you’ve permitted this), make big gifts of money to people, combine their finances with yours, manage discretionary funds with a fund manager or get involved in any sort of tax planning. Above all, they have one legal rule to follow:

To make decisions in your best interests, not their own or anyone else’s.

Contact our lasting power of attorney solicitors

Ready to join the thousands of people who have already registered an LPA this year? We’re on hand and ready to help.

Technically, you don’t need a solicitor to appoint a power of attorney. The relevant application forms can all be found online, along with guidance from the Office of the Public Guardian (OPG) on how to fill them out.

However, it’s worth keeping in mind; although the application may appear relatively straightforward, there are many potential stumbling blocks – which can often cause lengthy delays. And given the important nature of an LPA, it’s usually advisable to recruit the help of specialist power of attorney solicitors. 

More information on the benefits of using an LPA solicitor can be found in our previous blog.

Here at St Helens Law, we’re highly knowledgeable and experienced in this area of the law. Our wills and probate team can assist with all aspects of making your LPA, from selecting the right person to accurately reflecting your wishes.

We can also guide you through the registration process, avoiding any unnecessary hold-ups and ensuring it’s completed as quickly and seamlessly as possible.

If you’re still unsure whether to register a lasting power of attorney or have any questions, please don’t hesitate to contact us. You’re welcome to call us at any time on 01744 742 360. Alternatively, send an email to info@sthelenslaw.co.uk and we’ll get back to you with further information.

If you’ve decided an LPA is right for you and would like to take the first step, you can also request a free initial consultation with our lasting power of attorney solicitors by filling out our enquiry form.

The post Do I need to appoint a lasting power of attorney? appeared first on St Helens Law.

In 2021, the threshold of £325,000 was frozen until 2026. However, last year, the government announced that it was extending the policy even further until April 2028.

The consequences of this could be catastrophic for many people.

According to recent HMRC forecasts, an additional 50,000 families will be dragged into paying inheritance tax (IHT) as a result. And over 280,000 households across the UK now face the prospect of a higher inheritance tax bill due to this harsh seven-year threshold freeze.

A cruel tax that comes at the worst possible time

The IHT threshold has certainly received a lot of criticism over the last few years.

Described as unfair and archaic, it’s been accused of ‘openly penalising aspiration and saving’ and has earnt its place as one of the most hated taxes in the UK – and it’s easy to understand why.

Any assets that fall above £325,000 are taxed at 40%.

The problem is – this threshold has remained exactly the same since 2009. During that time, house prices have risen, wages are now higher, and inflation has increased. Therefore the value of people’s estates has grown. In theory, the IHT threshold should have gone up to reflect these changes. And if it had, it would currently stand at around £710,000. But of course, this isn’t the case.

More and more estates have now risen above the cut-off. In fact, the number of estates set to pay the tax from 2021-28 is predicted to be 63% higher than the previous seven years. And around 50,000 people will be forced to pay a hefty bill – who, technically, shouldn’t have to pay anything at all.

To add insult to injury, families are also often expected to pay this bill before probate has been granted, which can leave them struggling to source the money. Many find themselves either getting a short-term bank loan or paying for it out of their own funds. An extra stress that nobody needs whilst grieving a loved one.

How to avoid inheritance tax

Downing Street has recently held talks about abolishing inheritance tax completely, mainly because it would be a way to attract voters before the next election. However, as yet, nothing has been confirmed.

If your estate is currently worth more than £325,000 and you believe you could be one of the thousands of unlucky households affected by the IHT threshold freeze, now is the time to seek professional advice on inheritance planning.

There are actually several legitimate ways to help reduce your bill – or even avoid inheritance tax altogether. So it’s certainly worth speaking to a specialist to help you plan ahead.

3 of the main ways to avoid inheritance tax

1. Make a will

This can be beneficial in numerous ways.

Firstly, if you leave your estate to a spouse, they will qualify for a ‘spousal exemption’. This allows the full value to be transferred, free from inheritance tax. And when your spouse passes away, they will benefit from your unused IHT allowance, meaning they can pass on £650,000 completely tax-free.

Secondly, by leaving your home to your children, you can take advantage of the ‘property allowance’. This increases your personal threshold by £175,000 – meaning you can pass on an estate worth up to £500,000 without paying IHT. For a married couple, the combined allowance increases to £1m.

Thirdly, you can bring the value of your estate below the threshold by leaving money to a UK-registered charity. This money doesn’t count towards the total taxable value of your estate.

2. Give money as a gift

Unfortunately, it’s not as simple as giving everything away before you die. Unless it’s been seven years since you made the gift, the gifted assets will still be counted as part of your estate.

However, there are a few exemptions that can help to lessen the final tax bill in this way.

For example, you’re entitled to give away £3000 each tax year – 100% free from any inheritance tax. You can also give £250 each year to everyone you know. As long as these payments don’t go to the same person as the £3000, they are completely ignored as part of your estate and not subject to tax.

Plus, wedding gifts are also permitted tax-free – up to the value of £5000 for children, £2500 for grandchildren and £1000 for anyone else. Providing the gift is given on the day itself or shortly before the wedding.

3. Take out a life insurance policy

If you can’t find a way to reduce inheritance tax, you can always insure against it.

Life insurance is one of the simplest ways to cover the unwelcome bill.

Yes, unless you’re relatively young and healthy, policies can often be expensive – but it can still be a worthwhile investment. As the lump sum payout is usually written into trust, it’s classed as separate from the estate and readily available without probate. Which means, it can be used to clear the IHT bill – before your loved ones even receive your assets and without affecting your assets’ value.

Other potential options include paying into a pension instead of savings, releasing equity in your property for you to spend, investing in a business that qualifies for business property relief, arranging a ‘deed of variation’, or if all else fails… spending the money on something for yourself.

Contact our wills and probate team today

Inheritance tax can feel like a daunting and tricky thing to get to grips with. But with the current IHT threshold in mind, it’s crucial that you get inheritance tax planning advice – sooner rather than later – and ensure your family doesn’t get caught out by a cruel and extortionate bill after your death.

Here at St Helens Law, we can help.

Our wills and probate team have excellent knowledge and experience in this area, including a good understanding of how inheritance tax works and the best ways to minimise the bill. If you’re unsure whether IHT applies to your estate, need help with inheritance tax planning, or are interested in making a will to help avoid inheritance tax, please don’t hesitate to get in touch.

Simply give us a call on 01744 385171 to book an initial consultation. Or if you prefer, send an email to probate@sthelenslaw.co.uk and one of our specialist solicitors will respond as soon as possible.

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