Estate planning news - Proposed changes to inheritance tax rules sparks debate

HM Revenue and Customs (HMRC) is currently considering a change to laws regarding inheritance tax (IHT) as a means to encourage charitable giving, and a full consultation on the proposals has recently closed.

However, some solicitors and investment advice practitioners have said that the proposed reduction of the inheritance tax rate from 40 percent to 36 percent for those who leave at least 10 percent of their taxable estate to charity is too complex and narrow in scope to be of real benefit to worthy causes or to reduce the burden of IHT on beneficiary families.

The change was proposed in the March Budget with a start-date set for April 2012.

Keith Johnston, director of policy and communications at the Society of Estates Practitioners, which represents professionals involved in writing and planning wills, responded to the consultation and said members' opinions were divided over the efficacy of the proposals.

"There has been quite a lot of debate among our membership about how sensible this proposal is," he said. "We don't know if it will boost charitable legacies or just add complexity to an already complex process. There's not enough evidence either way."

However, tax law specialist Fenella Martin-Redman said in the East Anglian Daily Times, "The proposed incentive is more likely to increase planned charitable legacies that are already close to the 10% threshold than encourage new ones, but the potential impact is sufficient to justify the policy."

Adding, "We broadly welcome the proposal of a lower rate of IHT. However, we think HMRC should endeavour to make the new rules as clear as possible to avoid further complications in already complex legislation.

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Introducing Law Call Plus

Introducing Law Call Plus, a new scheme from George Ide LLP to make your life just that little easier. It is simple to join, has a wide range of client benefits, and is totally free of charge.

The principle behind the scheme is simple. We want to be more proactive for our clients, raising issues which perhaps should be considered by that client, rather than waiting until we are approached.

The benefits of joining the scheme include: free initial legal consultations, discounts and set fees, free storage of wills and powers of attorney, free registration of will on a national database, free storage of deeds, legal newsletters, free asset log, and free will reviews.

We seek to be more supportive, in general day-to-day life as well as during a crisis, and to assist our clients in planning ahead for a more secure future.

We can also look after all "Life's Documentation" for our clients, ensuring that the exact location of Wills, Trusts, Deeds, Living Wills, Enduring or Lasting Powers of Attorney are known and, if appropriate, copies can be kept by us.

The achievement of these aims is greatly helped by Law Call Plus, our Client Registration Scheme, which also provides clients with a security card informing anyone seeking to help them, for example after an accident. If you are interested in signing up to this scheme or would like more information please do contact us or join up here.

Employment law solicitors could face teacher questions

There are real fears that teachers in West Sussex could be in need of the advice of their unions and employment law solicitors following revelations that education budgets in the county are down "to the bone".

With UK-wide economic pressures being felt at the heart of West Sussex schools, union spokespeople say that staff could be culled as schools attempt to balance books.

It is undoubtedly a difficult time for the profession, with staffrooms across the county feeling the pressure of cuts and widespread talk of redundancies.

It is likely that many have already taken advice from unions, colleagues and employment law solicitors as to their rights, but if the axe does fall and cuts are the genuine reason it is the sad reality that, for the vast majority, there is likely to be very little that even the best employment law solicitor can do.

It is a gloomy, if hardly surprising, outlook that this is the reality faced by teachers, when funding from the Department for Education has fallen by 23% from almost £70 million to just over £43 million.

It is sometimes easy to forget that this is an issue that it is not just about now – it is about the future of all us is West Sussex, whether we live in Chichester, Bognor Regis or elsewhere.

Employment law solicitors' speculation proves fruitless

It may be possible that the decision by Fabio Capello to resign from the job of England football manager has deprived a firm of employment law solicitors somewhere in England the chance of representing a very high-profile case.

Before the announcement of Capello's resignation, the press was awash with speculation that the FA was intent on sacking Capello anyway and that it would cite breach of contract over the Italian's public criticism of the FA's decision to strip John Terry of the captaincy.

Almost immediately, a number of newspapers sought to garner the opinion of the nation's top employment law solicitors, asking whether the FA would be within its rights to remove Capello.

One problem seemed to be that no one actually knew the details of the manager's contract with the FA – a hurdle even the most insightful employment law solicitors would fail to overcome.

One told the The Telegraph newspaper, "In relation to the issue of Capello expressing an opinion on the captaincy, it depends on his contract and whether it allows him the provision to comment publicly on any matter which contradicts the approach of his employers at the FA.

"In usual circumstance, if a senior manager publicly undermines the collective decision of a board it can still be debatable whether it is grounds for dismissal. Unless it is specified under the terms of a contract that if a board makes a decision, no senior manager will make any public comment, there may be no basis for disciplinary action."

In a football world all too familiar with long-running employment disputes such as the stand-off between Carlos Tevez and Manchester City, and recent constructive dismissal claim of Kevin Keegan, I think we can afford to feel glad to be without a pre-Euros legal battle.

Residential conveyancing market looks to future

It's been a busy end of year for those in the residential conveyancing profession.

For example, at the end of November the Society of Licensed Conveyancers (SLC) held the inaugural industry annual conference – an event which was attended by around 150 specialists and solicitors from the residential conveyancing sector.

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