Virtual Conference: Wills and Probate Update 2021

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KEY SUBJECTS

• TAX UPDATE AFTER THE 2021 BUDGET: WHAT CHANGES ARE, OR MIGHT BE, COMING AND WHAT DO THEY MEAN FOR PRIVATE CLIENTS
•  PROPERTY ISSUES FOR PRIVATE CLIENT LAWYERS
• CHANGES TO TRUST REGISTRATION POST 5AMLD
• THE USES AND LIMITATIONS OF POST-DEATH VARIATIONS
• WHAT IS A FLEXIBLE LIFE INTEREST TRUST AND WHEN TO USE THEM?

SPEAKERS

John Bunker, Solicitor, Chartered Tax Adviser and Lecturer

Professor Lesley King,  Professional Development Consultant, University of Law

Gill Steel, Solicitor & Director of LawSkills Ltd

PROGRAMME

9.30am CHAIRMAN’S INTRODUCTION

TAX UPDATE AFTER THE 2021 BUDGET: WHAT CHANGES ARE, OR MIGHT BE, COMING AND WHAT DO THEY MEAN FOR PRIVATE CLIENTS

Will the Budget on 3 March simply address expenditure needs, or start to deal with the tough tax choices needed?! There may be a second Budget in 2021, when we are clearer about moving on to a “new normal”, or big tax changes may come in 2022. When tax changes do come, IHT & CGT will be in the firing line. This talk will explore tax developments and IHT planning ideas with the Co-Editor of the new Law Society IHT Planning Handbook, John Bunker. The presentation will bring you up to date on current proposals and how best to plan for them. It will include any changes which are brought into effect from the budget and is likely to include:

• The impact of any changes that have been made on Wills, Variations and Lifetime Giving
• Possible further changes, with particular reference to the Office of Tax Simplification (OTS)’s first report on CGT (November 2020) and their IHT report (July 2019)
• The OTS repeated its proposal to end CGT “uplift” on death where there is a full spouse exemption or 100% APR or BPR. What needs to change for planning?
• Proposals for business also include increasing the “trading threshold”, which would affect many businesses with significant investment income alongside their trading
• Changes to lifetime IHT exemptions, reducing CGT annual exemptions and increasing CGT rates (more into line with income tax)? What should we advise clients?

John Bunker, Solicitor, Chartered Tax Adviser and Lecturer

PROPERTY ISSUES FOR PRIVATE CLIENT LAWYERS

There are a number of areas where property issues affect private client practitioners, particularly in the administration of estates and trusts. In this session we cannot look at all of them but will consider:

• The new rules on accelerated payment of CGT
• Stamp Duty Land Tax
  • When is it an issue in estate administration?
  • Lifetime gifts and the additional rate
  • First Time Buyers Relief

• IHT
  • Right of occupation or life interest trust: what’s the difference?
  • The accidental Immediate post-death interest

Professor Lesley King,  Professional Development Consultant, University of Law

CHANGES TO TRUST REGISTRATION POST 5AMLD

Since the coming into force of the amended 5AMLD on 6 October 2020 Trust Administrators have been asking what do they need to do next. This presentation will cover the essential information to assist, including:

• Which trusts do not have to be registered
• Which trusts must be registered and by when
• How to decide on whether registration is required for those trusts which are not clearly in one group or the other
• The process of registration as updated
• Actions required by Trust Administrators

Gill Steel, Solicitor & Director of LawSkills Ltd

THE USES AND LIMITATIONS OF POST-DEATH VARIATIONS

Practitioners use post-death variations on a regular basis and they are a hugely valuable tool. In this session we will look particularly  at some pitfalls and things they cannot do.

• The limited effect of reading back
  • Variations and income tax
  • Impact on means tested benefits and care home fees care
  • Consideration
  • The ‘short’ IPDI

• Variation on behalf of dead beneficiary
  • Not possible where beneficiary had an IPDI
  • IHTA 1984, s93

• Confusion with s144
  • When to use which
  • The differences

• Successive variations not possible
  • Combining with disclaimers and s144 appointments

Professor Lesley King,  Professional Development Consultant, University of Law

WHAT IS A FLEXIBLE LIFE INTEREST TRUST AND WHEN TO USE THEM?

Since the 1970s popular use has been made of what is known as a flexible life interest trust but since the coming into effect of the Residence Nil Rate Band practitioners have questioned their continued use and also wonder more about the differences between such trusts and Immediate Post Death Interest Trusts (IPDIs). This presentation aims to explore in more detail the essential elements and use of the flexible lie interest trust and will include:

• A flexible life interest trust distinguished from an IPDI
• Uses – pros and cons
• Differences when made during lifetime compared to in a Will
• Tax treatment

Gill Steel, Solicitor & Director of LawSkills Ltd

5.00 pm CLOSE OF PROCEEDINGS