UK Office of Tax Simplification Takes Aim at Inheritance Tax Death duties were first introduced, in their modern form, back in 1894 when the government introduced estate duty, a tax on the capital value of land. Estate duty was eventually replaced by Capital Transfer Tax in 1975, which introduced the concept of tax on lifetime…
If you lose the capacity to make decisions on your own behalf, and you have not granted a Power of Attorney – whether to e.g. a relative, a friend, or a solicitor – the only way that access can be obtained to your financial assets is for an application to be made to the Court of Protection for a Deputy to be appointed, who can take decisions in your place so far as your financial affairs are concerned. This is an expensive, and relatively time consuming process.
To avoid the need for this, you can grant a Lasting Power of Attorney to cover your finances. It is also possible to grant a separate Power of Attorney in relation to your Health & Welfare – in which you can set out your wishes as to how decisions as to your health and welfare are to be taken, in the event that you were to lose capacity to take them yourself.
We strongly recommend that all our clients put in place a Lasting Power of Attorney – unless they have already executed an appropriate Enduring Power of Attorney.
This area of the law is changing fast, and we are happy to guide you through its complexity.