Category Archives: Funeral Plans

What Happens to Premium Bonds After Death ?

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A Premium Bond is an investment product held with the government by National Savings and Investment (NS&I). The government pays interest on these Bonds, and this interest is distributed by a lottery in a monthly prize draw. A cash prize can be anywhere between £25 and £1 million and is free of tax. Prizes are either paid straight into the individual’s bank account, by cheque through the post, or invested back into more Bonds.

Unlike most other assets, Premium Bonds cannot simply be passed on to beneficiaries of the estate, as they cannot be transferred into someone else’s name. When administering someone’s estate and dealing with Premium Bonds, there are two main options available to the Executor(s):

• Claim the Premium Bonds immediately

they can be repaid as part of the estate administration process, and the funds from this sale will be included as part of the total estate value for the beneficiaries. In this case, the Bonds will only be eligible for prize draws in the month that they are claimed.

• Cash them out later

NS&I will hold the Premium Bonds for 12 months after the death of the owner, during which time they are eligible for the prize draw. After this period, the Executor can claim any prizes won during this time, as well as the face value of the Bonds

It’s important to consider that although the winnings are not taxable when won, they are included in the estate for the purposes of Inheritance Tax (if applicable). Additionally, probate is more than likely required when managing Premium Bonds, as the NS&I threshold is only £5,000.

Get in touch to learn more about handling Premium Bonds in an estate.

LPA applications up 19% year-on-year

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Lasting Power of Attorney

 

 

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The number of Last Power of Attorney (LPA) registrations in England and Wales is continuing to soar, new data released by the Ministry of Justice has revealed.

 

n July to September 2022, there were 201,121 LPAs registered, up 19% compared to the equivalent quarter in 2021.

This continues the trend highlighted in a recent report from IRN Legal Research which found the number of applications in Q1 and Q2 of 2022 sat at 399,109, 12.6% higher than the 354,606 seen in the same period last year.

There were also 1,502 Enduring Powers of Attorney registered, though this represents a slight decrease from the same period last year.

The total number of Powers of Attorney (POAs) registered since 2008 can be seen below:

 

The Ministry of Justice said 57% of POAs registered were from female donors in July to September 2022 and 42% were from male donors. Altogether, 52% were over 75 years old.

Elsewhere in the Court of Protection data, it was also revealed that there was a 3% increase in applications made in relation to deprivation of liberty in the most recent quarter. However, there was a decrease by 36% in the orders made for deprivation of liberty over the same period from 988 to 637.

 

Deprivation of Liberty applications and orders, January to March 2008 to July to September 2022. Source: Ministry of Justice

 

Overall, there was a decrease in both applications and orders under the Mental Capacity Act 2005. Specifically, there were 9,045 applications made in July to September 2022, down by 8%. During the same period there were 12,094 orders made, down by 2%.

 

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FCA confirms list of regulated funeral plan providers

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The regulation of the funeral plan market proposes to provide better safeguards for consumers, including a ban on cold calling and commission paid to intermediaries, and high standards on governance and financial resilience. Regulation will also provide a more formal redress scheme through the Financial Ombudsman Service and will be covered by the FSCS if their provider goes out of business.

Emily Shepperd, Executive Director of Authorisations at the FCA, said that regulation would better protect consumers:

“As this sector approaches regulation, we want to provide holders of pre-paid funeral plans with some reassurance, which is why we have published a list of the firms we intend to authorise.”

“Our regulation will lead to higher standards in the market and boost consumer protection. We want to see an improvement in the way customers are treated, with better value products, better sales practices and better controls in place so consumers can be confident they will receive the funeral they expect.”

The full list of approved providers is produced below

Alternative Planning Company LimitedAvalon (Europe) LimitedAvalon Trustee Company LimitedCelebration Of Life Planning LtdCentral England Co-Operative LimitedCo-Op Funeral Plans LimitedCrystal Cremations LtdDignity Funerals LimitedDistinct Funeral Plans LimitedEcclesiastical Planning Services LimitedF A Albin & Sons LimitedFamily Funerals Trust LimitedFreeman Brothers (this includes Peter Christopher Freeman and Bridgid Mary Freeman)Golden Charter LimitedGolden Leaves LimitedHaven Personal Funeral Plans LtdIndependent Funeral Planning Services LtdLow Cost Funeral Limited T/A Affordable Funerals (this includes Memoria Limited)Peace Burials LimitedPlan With Grace LimitedPure Cremation Planning LtdSouthern Co-Operative Funerals LimitedThe Independent Family Funeral Directors Ltd (this includes Fosters Family Funeral Directors)William Alty & Sons Limited

Information about all applications is available on the FCA website

FCA names funeral plan providers who are NOT authorised

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The Financial Conduct Authority has published a list of 14 funeral plan providers who will not be authorised to sell new funeral plans once the new regulatory changes take effect from 29th July 2022.

Reiterating the forthcoming changes, the FCA stated that “only funeral plan providers that we’ve authorised, or their Appointed Representatives (intermediaries who can distribute and sell their plans) may sell new funeral plans [as of 29th July]”.

Following this date, the FCA said that the 14 firms in question “will not be authorised to sell new funeral plans” and that consumers “should not buy a new plan from them”.

Reasons for not authorising a provider comes as a result of an inability to demonstrate compliance with the FCA’s regulatory standards, which may include things like poor sales practices.

The full list is as follows:

Bristol Memorial Woodlands FPCapital Life Funeral Planning LtdEmpathy UK Funeral Plans LtdEternal Peace Funeral Plans LtdFox Milton and Co Ltd, trading as Unique Funeral PlansIberian Funeral PlansMairi Urquhart & Son LtdMaplebrook Funeral Plans LimitedPride Planning LimitedRest Assured Funeral Plans LimitedSeasons Personal Funeral Plans limitedSilver Clouds Later life planning LimitedSJP Lichfield LimitedSovereign Lifecare

The FCA also noted:

“If you already have a plan with one of these firms, you should get in touch with them to find out what is happening to your plan. Your options might include receiving a refund, or your plan may be transferred to another provider.

Certain firms that applied for authorisation before 1st March 2022 can continue to administer existing plans until 31st October 2022. This is to give these firms more time to wind down their business or find an authorised provider to take on their funeral plans.”

On 17th June, the FCA published a provisional list of 24 providers that are proposed to be regulated. It said that the 24 providers make up c. 87% of the market.

Can property improvements and upgrades be made during estate administration?

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Our latest informative blog is authored by Jim Sisson, Chief Financial Officer at Tower Street Finance. 

When someone dies, the beneficiaries may want to make improvements to the property to increase its value and their inheritance. This begs the question – can improvements or upgrades be made to a property during the estate administration process? In our latest blog, Tower Street Finance’s Chief Financial Officer, Jim Sisson, answers this question by covering: 

 ✓ The responsibilities of a Personal Representative
 ✓ Things to consider before making any home improvements
 ✓ How beneficiaries should proceed
 ✓ The options available to Personal Representatives

People leave behind a variety of possessions and treasures when they pass away. Managing property is a top priority for individuals tasked with handling an estate because it is frequently one of the most valuable assets.
There are, however, never any assurances as to the state of the property. While some might have been kept up to high standards for years, others might have deteriorated. So, these concerns prompt the question: Can (or even should) an estate property receive modifications or improvements?

Personal Representatives

Consider the function of a Personal Representative with regard to property in order to answer this query. In essence, they must preserve the asset in the same state that it was in at the time of the decedent’s passing by collecting, safeguarding, and maintaining it.
As a result, they are not accountable for making improvements to the property. They would be expected to handle more common maintenance problems, such as roof repairs and water leaks. In these situations, they must, for instance, fix the leak as well as any other damage to ensure that the property is returned to its original state.
It is not the Personal Representative’s responsibility to make improvements to the property that will increase its sale value. Therefore, the legal obligations of the Personal Representative would be to dispose of the property in another method, such as with a cash buyer, if (for example) the property had a low Energy Performance Certificate rating and potential buyers were unable to secure a mortgage.
Therefore, a Personal Representative must strike a balance between their obligations to each beneficiary individually and their obligations to the estate as a whole.

Home improvement

To be clear, the legal process of estate administration does not prevent any upgrades from taking place. However, such works are not a testamentary matter. As a result, there are a few things that need to be kept in mind:

As upgrades could incur costs and impact on the timeframe of sale, all beneficiaries should formally agree that the work is in their collective interests.If some beneficiaries do not agree with the work, the other beneficiaries could ‘pay them out’ of their share. If this is not possible, the property may need to be sold in its current state and there are products available to help if this is required.Any upgrade would be an action by the beneficiaries. Personal Representatives could assist in some capacity, but it would not be related to their legal duties.Personal Representatives may also be uncomfortable with extended delays to the administration process arising from any property works (especially if they are personally liable for any Testamentary Expenses). Products exist to fund these expenses and remove liability from the Personal Representative if required.

In all cases, all parties need to agree before proceeding.

 

Making the upgrades

So, how could beneficiaries ultimately proceed? There are two potential avenues they could explore:

The Personal Representative would need to confirm that all beneficiaries agree to any works (to ensure any risks and delays are acceptable). Unless individual beneficiary objections can be properly resolved, the works must not progress. Costs of any works could be met by an inheritance advance loan (to an individual or multiple beneficiaries). Properly constructed, this product allows beneficiaries to access a portion of their inheritance sooner, with repayment coming from distribution of inheritance from the estate.

Alternatively, the beneficiaries could request that the Personal Representative handles the work. It is possible for all beneficiaries to agree that the Personal Representative may recover these costs from the estate before distributing their inheritance. This may therefore allow a Personal Representative to use an estate funding product, taken out in their name and repaid from the proceeds of the estate.

 

Consider your options

While upgrades to an estate property are not a testamentary matter, that does not necessarily mean that they cannot be arranged.
There are potential approaches that can be taken on the issue, so it is well worth considering your options if you are in this kind of situation.
If you’d like to find out more or have any questions, please get in touch using the form below:



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Can probate fees be paid from the estate?

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When dealing with the death of a loved one, many Executors find themselves worrying about the costs of administering the estate and how fees can be paid. Acting as an Executor or Administrator is not a paid role, and it’s common to feel concerned that it may leave you out of pocket. In this blog, we’ll cover what probate is and whether probate (and other fees) can be paid out of the estate.

What is probate?

Probate, known as the Grant of Probate or Grant of Representation in England and Wales or Confirmation in Scotland, is obtained by the Executor to give them the legal right to administer the deceased’s estate. When someone dies without a Will, known as dying intestate, this role is referred to as the Administrator, and probate is called Letters of Administration.

Whether the individual died with or without a Will, the Executor or Administrator (Personal Representative) will need to work out whether probate is required. Generally, probate is required if the deceased solely owned property and/or has a certain amount of money in the bank. This amount is individual to each UK financial institution.

What is the difference between probate and estate administration?

Although probate is not required for every estate, the Executor or Administrator must always administer the estate. This process is referred to as estate administration; probate is just one part of the wider estate administration process. When administering an estate, the Personal Representative’s tasks may include notifying utility companies, preparing tax forms, selling assets and property, producing estate accounts, and more. Click here to download our complete guide to estate administration.

How much does probate cost?

The fee for obtaining a Grant of Probate is £273 for all applications except those where the estate is £5,000 or less – in this case, there is no fee to pay. Many Personal Representatives choose to instruct someone to apply on their behalf to take away the stress of the complicated paperwork; this will cost an additional fee. Whilst some providers will operate under a fixed fee, others might work on time and expense prices, and others may charge a percentage of the estate. There are different levels of professional services available to you, from simply obtaining the Grant of Probate to support with the full estate administration process.

Can probate fees be paid from the estate?

So, how are probate fees paid? The probate application fee can be paid online or via cheque (if applying by post) and then reimbursed from the estate later. Similarly, if a professional is undertaking the work on your behalf, the Executor or Administrator can claim back the cost from the estate.

Alternatively, an Executor bank account can be set up using the estate’s funds so that they do not have to pay any upfront fees themselves. However, this can depend on the amount of money in the estate and which financial institution the deceased banked with, and you may need the Grant of Probate before paying out any estate expenses from the deceased’s funds.

Can money be paid out of the estate before probate is granted?

Although there are some exceptions, the estate should usually never be paid out until the Executor has a Grant of Probate. However, if probate is not required, paying beneficiaries should still be one of the last tasks the Personal Representative undertakes. This is to ensure all debts and liabilities are paid from the estate first. It is usually possible to pay the funeral bill from the estate before probate is granted.

Additionally, it is advisable that the Executor places a statutory advertisement in a local paper so that any unknown creditors or beneficiaries have the chance to come forward. The recommended period for this advertisement is a minimum of two months, after which the estate can be distributed as planned. This has the added benefit of providing protection against disputes from unknown beneficiaries.

What other expenses can be deducted from the estate?

When acting as Executor or Administrator, you must keep a record of every expense you’ve had to pay so that estate accounts can be prepared, and reasonable expenses can be claimed back from the estate. Reasonable expenses are those paid by the Executor during estate administration which are unavoidable and can be confirmed as necessary to the estate/its beneficiaries. Other than probate fees, these may include:

Valuation servicesThe cost of clearing the propertyLegal fees for property saleTravel expensesInheritance Tax feesOther legal fees

Claiming expenses which are not reasonable could lead to delays in the estate administration process, as the beneficiaries are entitled to request records of everything that the Personal Representative is spending so that they receive their maximum inheritance.

When can the Executor pay beneficiaries?

Once all debts have been settled and assets accounted for, the Executor can then begin the process of paying out the estate to the beneficiaries. It is at this stage that the Personal Representative(s) can also be reimbursed for any expenses.
The Executor or Administrator should also produce estate accounts for the beneficiaries so that they can review the details of the estate’s make-up and how the share due to them has been calculated. This should include the estate’s complete assets, liabilities, fees, and expenses during administration. Essentially, estate accounts show all money coming in and out of the estate.

What help is available to Executors?

There are certain estate funding products that are available to help Executors cover the costs involved with probate and estate administration. Additionally, there are solutions available to keep the beneficiaries happy and avoid disputes. For example, Inheritance Tax loans, inheritance advances, and funding for estate expenses.

Instructing a professional that can provide a fixed, upfront cost not only assures Personal Representatives that they will not be charged any unexpected fees, but it also means that they can hand over the difficult work to an expert.

Together with Kings Court Trust, we can obtain a Grant of Probate for £950 (excluding VAT and the probate fee), taking all of the complicated paperwork on for you. We will then send your copies of the Grant to you, allowing you to begin the estate administration process. Additionally, we provide a full range of specialist estate solutions, such as completing the full estate administration on your behalf so that you have peace of mind that everything is taken care of.

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Can probate fees be paid from the estate?


August 16, 2022

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When dealing with the death of a loved one, many Executors find themselves worrying about the costs of administering the estate and how fees can be paid. Acting as an Executor or Administrator is not a paid role, and it’s common to feel concerned that it may leave you out of pocket. In this blog,


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What happens to crypto assets when someone dies?


June 23, 2022

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It’s not unexpected that managing a loved one’s digital assets after their passing is a duty that is becoming more and more prevalent as more and more areas of our life transfer to the digital realm. Due to its rising popularity, cryptocurrency is a digital asset that frequently makes news. Due to cryptocurrency’s early development


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Care Home Fees and Protective Trust Wills


June 19, 2022

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Area Coverage St Albans | Birmingham | Bath | Blackburn | Bradford | Bournemouth | Bolton | Brighton | Bromley | Bristol | Carlisle | Cambridge | Cardiff | Chester | Chelmsford | Colchester | Croydon | Canterbury | Coventry | Crewe | Dartford | Dundee | Derby | Darlington | Doncaster | Dorchester | Dudley


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Trusts in Wills


June 16, 2022

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Trusts in Wills https://youtu.be/PuosZ_WN-sU Many Wills may have a Trust written into them but there is often confusion surrounding the reasons why it has been included and what it means. It is important to remember that although the Trust in the Will is treated as coming into effect when a person dies, there may be


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Kate’s financial worries demonstrate the need for LPA


June 6, 2022

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TV personality Kate Garraway’s publicized financial worries, due to her husband currently being in a coma in hospital due to the coronavirus, is a timely reminder of the importance of Lasting Power of Attorneys (LPAs). Kate’s husband Derek was diagnosed with coronavirus back in March. Although he is now testing negative for the illness he


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The ongoing trend of leaving a digital legacy


June 5, 2022

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The ongoing trend of leaving a digital legacy The ongoing trend of leaving a digital legacyBy the end of this century, the number of dead people on the popular social media network, Facebook, is expected to outnumber living members – turning it into the world’s biggest ‘virtual graveyard’. Additionally, a recent YouGov survey revealed that


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What happens to crypto assets when someone dies?

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It’s not unexpected that managing a loved one’s digital assets after their passing is a duty that is becoming more and more prevalent as more and more areas of our life transfer to the digital realm. Due to its rising popularity, cryptocurrency is a digital asset that frequently makes news. Due to cryptocurrency’s early development (in the first decade of the twenty-first century), many people are still unfamiliar with it and may unintentionally skip the estate administration stage of dealing with cryptoassets.

What is cryptocurrency?

Cryptocurrency is digital money which uses encryption techniques to generate currency and verify the transfer of funds. It has been designed to be quicker, cheaper, and more reliable than our regular government-issued money, removing the middleman in all transactions. However, it’s important to note that there is currently no regulation for the ownership or transfer of cryptocurrency in the UK; therefore, many are still doubtful about using it.

There are various forms of cryptocurrency, including the likes of Bitcoin, Ripple, Ethereum, Litecoin, and Dogecoin. As of February 2022, Statista reported that there were 10,397 cryptocurrencies, which highlights the importance of ensuring cryptocurrencies are accounted for during estate planning and estate administration.

Currently, only one country in the world has adopted Bitcoin as an official currency. In September 2021, El Salvador adopted the cryptocurrency as an official currency alongside the US dollar. This was a controversial decision, with the International Monetary Fund (IMF) urging the country to reverse the decision and large-scale protests over the potential “instability and inflation”.

Through specialised exchange platforms like Coinbase, eToro, and Binance, standard GBP currency may be used to buy and sell cryptocurrencies. 
To save your cryptocurrency balance, these exchanges provide built-in virtual wallets that function similarly to a conventional “pocket” wallet. 
The ability for ownership to be pseudonymous, or the ability to transmit and receive money without disclosing any personally identifying information, is one of the numerous benefits of cryptocurrencies.

Can you inherit Bitcoin and other cryptocurrencies?

Yes, you can inherit Bitcoin and other cryptocurrencies upon death. A loved one can legally bequeath it to you in their estate plan like any other asset

To transfer cryptocurrency to the next of kin, certain exchanges have policies in place. 
One of the many cryptocurrency trading platforms, Coinbase, has a page on its website specifically created to instruct Personal Representatives on how to access the deceased’s cryptocurrency after their demise. 
At this time, they require a death certificate, the decedent’s will and/or a Grant of Representation, a valid government-issued photo ID, and a letter signed by the executor(s) or administrator(s) who received the Grant specifying what they want Coinbase to do with the account’s remaining funds.

Care Home Fees and Protective Trust Wills

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Care Home Fees and Protective Trust Wills

Area Coverage
 St Albans | Birmingham | Bath | Blackburn | Bradford | Bournemouth | Bolton | Brighton | Bromley | Bristol | Carlisle | Cambridge | Cardiff | Chester | Chelmsford | Colchester | Croydon | Canterbury | Coventry | Crewe | Dartford | Dundee | Derby | Darlington | Doncaster | Dorchester | Dudley | Enfield | Exeter | Fylde | Gloucester | Guildford | Harrow | Huddersfield | Harrogate | Hemel Hempstead | Hereford | Hull | Halifax | Ilford | Ipswich | London | Liverpool | Lancaster | Llandrinod | Leicester | Llandudno | Lincoln | Leeds | Luton | Manchester | Medway | Milton Keynes | Newcastle | Nottingham | Northampton | Newport | Norwich | Oldham | Oxford | Peterborough | Perth | Plymouth | Portsmouth | Preston | Reading | Redhill | Romford | Rotherham | Sheffield | Swansea | Stevenage | Stockport | Slough | Sutton | Swindon | Southampton | Salisbury | Sunderland | Southend | Stoke on Trent | Shrewsbury | Taunton |  Telford | Tonbridge | Torquay | Truro | Teeside | Twickenham | Uxbridge | Warrington | Watford | Wakefield | Wigan | Worcester | Walsall | Wolverhampton | York

Trusts in Wills

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Trusts in Wills

Many Wills may have a Trust written into them but there is often confusion surrounding the reasons why it has been included and what it means.

It is important to remember that although the Trust in the Will is treated as coming into effect when a person dies, there may be some decisions for the named Trustees to make and it may be necessary for legal documents to be drafted to set up the Trust appropriately.

A Trust that is contained in a Will comes into effect when the Executors who have administered the estate transfer the assets (such as money or land) into the hands of Trustees. The Trustees are the legal owners of these assets but are not entitled to any benefits of the Trust, unless they are named as a beneficiary themselves. The Trustees are obliged to hold and manage the property for the benefit of a person or a group of people, who are called beneficiaries.

Trustees who are named in a Will have the option to take up their role or they can choose to retire their duty as Trustee if they so wish.  The power of appointing a new Trustee lies with them, in most instances. For Trusts involving land, at least two Trustees must be appointed.

There are several types of Trusts but the most commonly used include Trusts for minors and Discretionary Trusts.

Area Coverage
 St Albans | Birmingham | Bath | Blackburn | Bradford | Bournemouth | Bolton | Brighton | Bromley | Bristol | Carlisle | Cambridge | Cardiff | Chester | Chelmsford | Colchester | Croydon | Canterbury | Coventry | Crewe | Dartford | Dundee | Derby | Darlington | Doncaster | Dorchester | Dudley | Enfield | Exeter | Fylde | Gloucester | Guildford | Harrow | Huddersfield | Harrogate | Hemel Hempstead | Hereford | Hull | Halifax | Ilford | Ipswich | London | Liverpool | Lancaster | Llandrinod | Leicester | Llandudno | Lincoln | Leeds | Luton | Manchester | Medway | Milton Keynes | Newcastle | Nottingham | Northampton | Newport | Norwich | Oldham | Oxford | Peterborough | Perth | Plymouth | Portsmouth | Preston | Reading | Redhill | Romford | Rotherham | Sheffield | Swansea | Stevenage | Stockport | Slough | Sutton | Swindon | Southampton | Salisbury | Sunderland | Southend | Stoke on Trent | Shrewsbury | Taunton |  Telford | Tonbridge | Torquay | Truro | Teeside | Twickenham | Uxbridge | Warrington | Watford | Wakefield | Wigan | Worcester | Walsall | Wolverhampton | York

Kate’s financial worries demonstrate the need for LPA

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TV personality Kate Garraway’s publicized financial worries, due to her husband currently being in a coma in hospital due to the coronavirus, is a timely reminder of the importance of Lasting Power of Attorneys (LPAs).

Kate’s husband Derek was diagnosed with coronavirus back in March. Although he is now testing negative for the illness he is still in hospital battling against the virus’ aftermath.

This has left Kate alone, to parent their two children and to deal with the household finances and insurance policies. The latter which she is struggling with, due to Derek being the named person on the bills and different policies.

Kate spoke very open and honestly about her financial worries, on Good Morning Britain.

She said:

“One of the practical problems – which a lot of people would’ve experienced if they’ve got the absence of someone in their life – like many thing the car is entirely in Derek’s name, the insurance is in Derek’s name, a lot of our bank accounts.

“There are a lot of financial going that I’ve talked to you both about going on, which is making life very complicated because I can’t get access to things.”

She added:

“Because legally I haven’t got power of attorney. And all this other stuff that goes on when you’re dealing with a situation where someone’s been sick for a long time.”

Whilst people have been using the time in lockdown to get their affairs in order by creating Wills, it’s also beneficial to talk to your clients about the benefits of an LPA.

Kate Garraway’s situation clearly demonstrates the importance of an LPA, and may break the taboo around them only being needed for elderly or vulnerable relatives.

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