Legal Facts

THE IMPORTANCE OF GETTING YOUR LEGAL AFFAIRS IN ORDER

As individuals and families, we work hard and spend many years accumulating a safety net for our retirement in the form of property, savings and other assets.

As we grow older we often worry about what will happen to our personal and financial affairs and who will manage them if we become ill or have to go into hospital or a nursing home.

It is important that you seek professional advice to get your legal affairs in order at this stage of your life. This is true whether you are receiving care in a Care Home, or in your own home.

Elizabeth Webbe, a Partner at Trethowans Solicitors, and an expert in this area of the law has produced a helpful guide to the ten essential legal issues you should consider.

1 - Have you made a Will?
If the answer is no, put one in place, straight away. If your answer is yes, now is the time to review it. You wish to leave your assets to the heirs of your choice, not those chosen by the State, a valid Will ensures that your wishes are followed. If you can no longer make a Will, a Will can be made for you by your family, with the authority of the Court. This is called a Statutory Will.

2 - Have you made a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a legal document in which you appoint one or more individuals to manage your affairs on your behalf. By creating an LPA you are ensuring that your affairs can be kept in order should you later become physically or mentally incapable of managing your own affairs. It is not possible to create an LPA after you have become mentally incapacitated.
There are two types of LPA: one for financial decision making and one for all those daily personal decisions which are not financial. You choose who you want to help you with those decisions. If you have not made one and lose capacity, how can anyone access your money to pay for your care, or decide in which Care Home you are to live?

3 – Who is the Next of Kin?
This term means nothing in Law. Unless you make a Lasting Power of Attorney, no-one is authorised legally to make financial and personal decisions for you. This includes your closest relatives.

4 - Do you know what a “Deputy” is?
They are someone chosen by the authorities to handle your financial and other decisions for you. This is what happens if you have not made a Lasting Power of Attorney. The Deputy may well NOT be the person you would have chosen.

5 - Have you had a Primary Care Trust (NHS) assessment?
Everyone entering a home or receiving nursing care in their own home is entitled to this assessment. This is nothing to do with the Local Authority means testing assessment.

6- What is a Primary Care Trust Assessment?
It is an assessment of your physical and mental state by health care professionals, to see if you qualify for Continuing Care Funding. This is funding of your care by the NHS and is NOT means tested. If you qualify, 100% of your care fees are paid for you, regardless of your own means.

7 - Have you looked at your Inheritance Tax situation?
What can you do now to minimize the liability to Inheritance Tax (death duties) payable on your death? Do you know all of the tax breaks which are available? If so, are you using them? More may become available if you are leaving your own home.

8 - Statutory Gifts
If you have not done all you can to save tax, it is possible for family members to apply to the Court to have it authorise gifts of your assets to them, while you are still alive, provided you do not need the money yourself.

9 - Has your spouse, partner or family member got Alzheimer’s?
If yes, it is essential that your Will does not leave your assets to them directly. It might prevent them qualifying for Local Authority funding in the future. A properly written Will can preserve an inheritance for your family.

10 - Deprivation of Assets
If you give your house or money to family members to save it from being means tested as yours this may well not work, particularly if you are about to go into a Care Home. There is a lot that can be done to protect your property, assets and savings.
To find out more about getting your legal affairs in order or for further information on any of the points mentioned above, please do get in touch with Elizabeth at:

Elizabeth Webbe, Partner
Trethowans Solicitors
Tel: 01722 426943
Email: elizabeth.webbe@trethowans.com
http://www.trethowans.com/services_for_you/care_funding.asp