We are delighted to have moved to Tier 2 in the Private Client – Agriculture and Estates category as well as maintain our rankings in Clinical Negligence: Claimant – Tier 2 and Personal Injury: Claimant – Tier 3.  We are also newly ranked in Private Client – Personal Tax, Trusts and Probate.

The Legal 500 directory is an independently published guide that ranks law firm practices as well as individual solicitors through comprehensive research analysis including interviews with peers and clients.  We are thrilled to be recognised in the rankings again this year, which is a testament to our hard-working teams and their delivery of excellent client service.

We are proud to not only maintain, but improve our rankings, and we are thrilled with the wonderful feedback from our clients, network of experts and barristers.  Thank you to our clients and referees who took the time to participate in the interview process and provide feedback. We would also like to thank the research teams at The Legal 500 for conducting the process.

Team Feedback:

Agriculture and Estates

“The practice has provided excellent legal services, in a timely, proficient, friendly, and professional manner.” 

“Mark Dixon has provided excellent legal advice, with a high level of dedication and enthusiasm. His professionalism, commitment and knowledge has helped our company grow.”

Clinical Negligence

“SJP law are a proactive and diligent firm, that work closely with both claimants and experts. They communicate efficiently across all members of the team and are responsive and helpful.”

“The clinical negligence and personal injury department have exceptional knowledge of their industry and have built strong working relationships with experts and Counsel. They are well respected and deliver fantastic results for their client.”

Personal Injury

“Very approachable.”

“The team works very professionally and offers a holistic approach.”

Private Client Personal Tax, Trusts and Probate

“SJP Law sorted out my family’s probate perfectly and involved me whenever necessary.”

“Personal approach. Knowledgeable and skilled individuals.”

For more information on how our expert teams can help, please call us on 01482 324591 or email: info@sjplaw.co.uk

The post SJP Law ranks in Legal 500 UK 2026 appeared first on SJP Law.

When someone dies, their estate (property, money and possessions) usually needs to be administered through a legal process known as probate. In England and Wales, probate is the procedure by which the deceased’s will is proven in court and the executors are given authority to distribute the estate. If there is no will, a similar process applies through “letters of administration”.

Although many people instruct solicitors to deal with probate, individuals can apply directly through the courts. This is often referred to as “DIY probate”. While it may seem like a way to save costs, there are several risks that anyone considering this route should be aware of.

What is Probate?

Probate is the official confirmation that a will is valid and that the named executors can deal with the estate. Without a grant of probate (or letters of administration if there is no will), banks, building societies and other institutions will not usually release funds or transfer property.

The law governing probate primarily comes from the Non-Contentious Probate Rules 1987 and the Administration of Estates Act 1925. Applications are made to the HMCTS Probate Service (online in most cases, or by post where required). If the estate is worth over £5,000, the HMCTS application fee is £300; there’s no fee at £5,000 or less.

Why Some People Attempt DIY Probate

There are two main reasons people try to handle probate themselves:

• Cost – those attempting DIY probate seek to avoid paying professional fees.
• Simplicity – In straightforward estates, some executors believe they can manage the process without professional support.

However, even apparently simple estates can have hidden complications.

The Risks of DIY Probate

1. Misunderstanding Inheritance Tax

Executors are personally liable for ensuring inheritance tax (IHT) is calculated and paid correctly. Mistakes can result in penalties and interest being charged by HMRC. Complex rules apply, including allowances, reliefs, and exemptions.

2. Misinterpreting the Will

Legal terminology in wills is not always straightforward. Executors may misunderstand the provisions, leading to incorrect distribution of assets or disputes among beneficiaries.

3. Failing to Identify All Assets and Debts

Executors must ensure that all assets are collected, and all debts are paid before distributing the estate. Overlooking debts or paying beneficiaries too early can make an executor personally liable.

4. Problems with Property

Where the estate includes property, there can be complications such as mortgages, jointly owned property, or an unclear title. These issues often require legal expertise to resolve.

5. Disputes Between Beneficiaries

DIY probate can increase the risk of disputes if beneficiaries feel the estate is being mishandled. Executors can be taken to court for breach of duty.

6. Executor’s Personal Liability

Executors carry significant personal responsibilities. Errors in tax, distribution or administration can result in financial liability, even if the mistakes were unintentional.

When DIY Probate May Be Less Risky

DIY probate might be manageable where:

• The estate is small, and all cash balances are under each institution’s probate threshold (check with each bank/building society)
• There is no property.
• There are a few beneficiaries, all of whom agree on the process.
• There are no tax liabilities or foreign assets.

Even in these cases, care should be taken to follow official guidance.

Balancing Cost and Risk

While solicitors’ fees can seem significant, they can save time, reduce stress and protect executors from costly mistakes. A solicitor can also deal with HMRC and the Probate Registry on your behalf and ensure that the estate is administered in accordance with the law.

Final Thoughts

Probate is a necessary legal process that should not be taken lightly. DIY probate is possible, but the risks can outweigh the savings if the estate is anything other than very simple. Executors should think carefully about whether they have the time, knowledge, and confidence to handle the process themselves.

If you are facing probate, it is always advisable to seek independent legal advice to ensure that the estate is dealt with correctly and to protect yourself from personal liability.

The post DIY Probate in England – Understanding the Risks appeared first on SJP Law.

What is Freehold?

If you purchase a freehold property, you own both the building and the land it stands on outright. Your ownership is not limited by time, and you are responsible for the upkeep of the property and the land.

Freehold is generally considered the most straightforward form of ownership, as there is no landlord or ground rent to pay. Most houses in England are sold as freehold, although there are exceptions.

What is Leasehold?

A leasehold property means you own the right to live in the property for a fixed number of years, decades, or even centuries (leases are commonly granted for 99, 125, or 999 years). The land itself remains owned by the freeholder or landlord.

As a leaseholder, you may be required to pay:

• Ground rent (though reforms are phasing out new ground rents for most residential leases),
• Service charges and maintenance fees for shared spaces such as hallways, gardens, or lifts,
• Contributions to major works like roof repairs or external decoration.

Flats are almost always sold as leasehold because of the shared nature of the building. Some houses were historically sold as leasehold, but this practice has been widely criticised and since 2019 most new-build houses cannot legally be sold on a leasehold basis (with limited exceptions).

Key Differences Between Freehold and Leasehold

The distinction between freehold and leasehold can have long-term implications for property owners.

• Ownership: Freehold gives you permanent ownership of the land and property. Leasehold grants ownership for a fixed term only.
• Costs: Leaseholders may face ongoing costs such as ground rent, service charges, and fees for extending their lease. Freeholders are responsible for the entire cost of maintaining the property.
• Control: Freeholders have complete control over their property (subject to planning laws). Leaseholders may also require permission from the freeholder for alterations.
• Expiry: Leasehold ownership reduces in value as the lease term shortens. Extending a lease can be expensive, particularly if the remaining term is less than 80 years.

Recent Reforms

The law relating to leasehold is evolving. The Leasehold Reform (Ground Rent) Act 2022 abolished ground rent for most new residential long leases. Existing leaseholders may still have to pay ground rent unless they extend or vary their lease. The Leasehold and Freehold Reform Act 2024 (not yet fully in force) is expected to make it easier and cheaper to extend leases (standardising them to 990 years and abolishing marriage value) or buy the freehold, as well as increasing service charge transparency

Which is Better?

Buyers often prefer freehold because it avoids ongoing costs and restrictions. However, leasehold is common with flats and may be the only available option in some areas. The “better” choice depends on your circumstances, and, in the case of a lease, its terms and how long is left on it. Different rules apply in Scotland and Northern Ireland, where leasehold ownership is uncommon or has been abolished.

Final Thoughts

Whether you are considering a freehold or leasehold property, it is essential to understand the implications of each before committing to a purchase. A solicitor at SJP Law can explain your rights and responsibilities, help you review the terms of a lease, and advise on any risks.

The post Freehold vs Leasehold: Understanding the Difference appeared first on SJP Law.

Despite ongoing pressure from legal and policy bodies, meaningful reform still lags behind. In the meantime, the risks for cohabiting couples remain high, particularly with the persistent myth of the ‘common law marriage’.

Explained Monika Bone, at Stamp Jackson & Procter Limited, based in Hull and York: “There is no such thing in England and Wales and couples who live together without marrying or entering a civil partnership need to be aware they do not have the same legal rights or financial claims.

“That means if a cohabiting couple separates, whether they share children or not, there is no automatic right to the protections that marriage brings – such as maintenance, a share of property, pensions or other assets – regardless of how long a couple have been together.”

The number of cohabiting couples has more than doubled over the past 25 years and now exceeds 3.5 million households according to the latest figures from the Office for National Statistics, but the law has not kept pace with societal change.  While the Law Commission has long advocated for reform to introduce basic financial protections for cohabiting couples who have children or have lived together for a significant period, successive governments have failed to legislate.

In 2022, the Women and Equalities Committee called for urgent action to address the lack of legal protection, and the Labour Party has expressed support for cohabitation reform, but no clear timeline has been set beyond saying a formal consultation will be issued this year ‘to build public consensus on what cohabitation reform should look like’.

“It’s a persistent legal blind spot,” added Monika.  “Cohabiting couples often build long, committed lives together – even raising children or buying homes – but have no automatic legal safety net if things go wrong. Until reforms catch up, couples should get advice early to avoid the risk of unfair outcomes if the worst happens and relationships breakdown.

“For now, the safest approach for cohabiting couples is to act as though there will be no legal safety net – and put the necessary agreements in place. That way, if the worst happens, the outcome doesn’t depend on a legal system still catching up with modern family life.”

Until legal reform happens, the best protection is preparation. Legal experts recommend a few key steps:

• Create a cohabitation agreement: This sets out how property, finances and responsibilities will be handled during the relationship and in the event it ends.

• Sign a declaration of trust: Where a property is jointly owned, this clarifies who owns what share.

• Make a will: Cohabiting partners do not automatically inherit under intestacy laws.

• Consider parental rights: Unmarried fathers are only automatically granted parental responsibility if named on the birth certificate. Legal advice can help clarify child arrangements and support.

The post Cohabiting couples face legal blind spots as reform drags on appeared first on SJP Law.

This strategy relates to the Residence Nil Rate Band (RNRB), a valuable relief on inheritance tax that kicks in when individuals pass on the family home to their direct descendants.  It provides an additional threshold of £175,000 per person, or £350,000 for a couple, when combined with the standard nil rate band.

But there’s a catch. For estates worth over £2 million, the RNRB is gradually tapered away at a rate of £1 for every £2 over the threshold.  Once your estate exceeds £2.35 million, or £2.7m where a partner’s allowance has been passed on, the allowance disappears altogether. For high-net worth individuals, this taper can erode a significant benefit intended to protect the family home.

Passing on assets can help reduce the value of an estate, but that’s not an option when you need continued use of them or do not wish to pass them on until death.  But there is a potential workaround, by a legitimate form of last-minute tax planning combined with what’s known as a Potentially Exempt Transfer, or PET.

Under PET rules, a gift made during someone’s lifetime is exempt from inheritance tax if the donor survives for seven years. If they die within that period, the gift is brought back into  account for tax purposes. But, and here’s the crucial detail, PETs are not included when calculating the value of the estate for the RNRB tapering rule.

This means that a gift made shortly before death  will reduce the value of the estate for the purposes of RNRB even if the donor only survives the gift by a very short time.  This can reinstate the full £175,000 tax free allowance – or £350,000 if a partner has passed on their allowance to the survivor – with a potential inheritance tax saving of as much as £140,000 on larger estates over £2.7m.

As ever, expert advice is essential.  Said Monika Bone, tax and estate planning specialist with Hull solicitors SJP Law ltd: “This is one of the few occasions where acting at the last minute can still bring huge benefit to your estate planning. The tax saving can be substantial, but timing, advice and precision are everything and the rules can easily trip up those who aren’t aware of the details.”

For example, a £2.2 million estate would see their Residence Nil Rate Band reduced by £100,000 due to tapering. But a  gift of, say,  £250,000 made shortly before death will bring the estate back under the £2 million threshold so that the full RNRB allowance is available, saving their heirs £40,000 in inheritance tax.

Monika added: “While it may sound surprising, the law allows this route because PETs are deliberately excluded from the RNRB tapering test. In effect, the estate is judged on its value at death, excluding recent gifts, so creating an opportunity for savvy planning at a sensitive moment.”

Some of the other considerations to take into account include:

•             Capital Gains Tax (CGT): Gifting assets such as property or shares may trigger CGT, depending on the circumstances and the asset’s value.

•             Impact on beneficiaries: The recipient of the gift may have tax or financial planning consequences of their own to consider.

•             Record-keeping and disclosure: Accurate records and timely professional advice are essential to ensure the gift is treated correctly by HMRC.

Monika added: “For those with estates near or above the £2 million threshold, understanding how lifetime gifts interact with the RNRB can mean the difference between losing a valuable relief and passing on a larger legacy to the next generation.”

The post How a last-minute gift could save your heirs £140,000 in tax appeared first on SJP Law.

List Your Assets

Before creating your will, you must consider what makes up your estate. Whilst you don’t aim to pass away anytime soon, planning for tomorrow by working out what you have today is essential.

List all your assets, property, investments, pensions and personal belongings. Assess their value and total them up. Next, list all your debts and, again, total them. Take your debts from your assets and you will arrive at your net estate. This is the figure on which Inheritance Tax is calculated.

Listing your assets will help you decide who you should allocate those assets to.

Address Digital Assets

Don’t forget to address your digital assets. These include:

• Your email
• Social Media Accounts (Facebook, X (formerly Twitter), LinkedIn, Instagram, Pinterest, etc.)
• Digital music library
• Photo and video collections
• Files on your computer or stored online
• Cryptoassets

You will need to think carefully about these and how you can allow someone to access them after your death so they can, where possible, be distributed according to your directions.

Plan for Inheritance Tax

Once you know the extent of your estate, you will discover whether you have a potential Inheritance Tax problem. Inheritance Tax becomes payable when the net estate is more than £325,000. There are several exemptions and allowances, notably no inheritance tax payable for transfers between spouses or civil partners. However, that might not be the best option.

Seek professional advice to discover options to mitigate against or eliminate Inheritance Tax.

Decide on your Executor(s)

Your executor is key to the proper and efficient administration of your estate. You must make the right choice. Select someone you trust to deal with your estate after your death, as they will be charged with following the instructions in your will.

It is also sensible to appoint a joint or substitute executor. When you do this, should one of them die, the survivor can deal with the administration of your estate.

Identify your beneficiaries

Before putting pen to paper, consider who you wish to share in your estate and how much you want them to share. For example, do you wish to leave specific items to anyone or direct a bequest or legacy to a charity or community organisation? Make a list of your beneficiaries and what items or share in your estate you intend to leave to each.

Decide on Residuary Estate

After deciding on specific bequests and legacies, you must consider who should receive the remainder of your estate. This is called the residue, meaning anything left after individual estate items have been dealt with. You must decide how the residue will be dealt with as failure to do so will mean any residue will fall into intestacy and be dealt with under the law of succession.

Prepare for Unexpected Events

Consider what you would like to happen to bequests or legacies or the residue of your estate if those you’ve directed to receive them should die before you do. Make provision in your will to ensure that if someone you’ve named dies or, in the case of a charity or community organisation, ceases to exist, the share in the estate they were to receive is re-directed elsewhere.

Consider appointing a guardian

If you have young children, you need to think about who you would wish to look after them if you and their other parent were both to pass away. In these circumstances, naming a guardian for any minor children is essential. It is vital to discuss the guardianship with those you wish to appoint to ensure they are prepared to take on the role. You will also need to consider what financial arrangements you need to put in place to provide for your children until they reach the age of majority.

Similarly, if you have a disabled child, you should consider what guardianship provisions are required, especially as that child grows into adulthood, where a court process is necessary to formalise the guardianship.

Sign Your Will Properly

You must sign your will correctly. It must be signed at the end in the presence of two witnesses who must also sign. The witnesses mustn’t also be beneficiaries of the will.

Store Your Will Safely

Once you have drawn up and signed your will, keep it secure and inform your executor(s) of its location. That means it will be easily found following your death.

Review Your Will Regularly

Once you’ve made a will, it is essential to keep it under review. You should revisit and update your will after significant life events such as marriage, divorce or having children. Suppose you increase your wealth significantly or inherit a large sum of money or high value property. In that case, you should consider the impact on your estate and whether you need to review your will and any inheritance tax plans.

It also makes good sense to review your will every three or five years to check that the intentions you set down in your will remain your intentions at that point.

Consider a letter of wishes

You can always write a letter of wishes for your executors to guide them on how you would like your estate dealt with. This letter might include details of how you would like your funeral handled. A letter of wishes is informal and non-binding.

Seek legal advice

Last, but by no means least, when you decide to draw up your will, you should seek legal advice. By seeking legal advice, you will have peace of mind knowing your will has been prepared by a professional who is experienced in the field and that your will is competent. The last thing you would want is a will that is flawed and open to challenge, bringing confusion and upset to your beneficiaries.

The post A ‘To Do’ list for making your will appeared first on SJP Law.

What’s required for a valid will?

There are key elements required to ensure a will is valid:

• The testator must be at least 18 years of age. The testator is the person making the will.
• The testator must have the capacity to make the will. That means the testator must be of sound mind.
• The will must be in writing, and the testator must sign it (or, in certain circumstances, be signed by another person in the testator’s presence).
• The testator must sign the will in the presence of two witnesses or acknowledge their signature in the presence of two witnesses.
• Two witnesses must sign the will in the presence of the testator.

These key ingredients are impossible to replicate in a digital world, not least WhatsApp. However, when the UK was subject to lockdown and movement restrictions due to the Covid-19 pandemic, the UK Government amended the Wills Act, allowing witnessing remotely over a video link. Other jurisdictions took similar measures, some of which have become permanent.

The Law Commission and Electronic Wills

The Law Commission began a consultation into electronic Wills in 2017. The consultation was paused between 2019 and 2022 and recommenced in October 2023. The Commission produced a supplementary consultation paper, and the consultation period closed on 8 December 2023.

A key element of the consultation paper’s discussion was how a will could be executed electronically and how that execution could comply with the Wills Act. The paper also considers whether bespoke arrangements are needed to accommodate electronic wills and, potentially, a new Wills Act to satisfy those needs.

There has been no further movement since the consultation closed.

Are we likely to see wills by WhatsApp in the future?

None of us knows what the future will hold, but there is no indication that wills by WhatsApp will be valid. WhatsApp is a messaging app that does not lend itself to collaboration in a single text. There is also an issue where the testator might set the text streams to be automatically deleted. You need a will to endure, and this cannot happen if the text containing the will is deleted automatically.

The post Can you make your will on WhatsApp? appeared first on SJP Law.

Inheritance Tax is payable on an estate with a net value of more than £325,000. Any estate above that figure is charged at a flat rate of 40%. There are, of course, exemptions. For example, no IHT liability for transfers between spouses and civil partners exists. However, leaving your entire estate to your spouse or civil partner might be stoking up a future IHT liability.

This article will discuss the options available through lifetime gifting to minimise your exposure to Inheritance Tax. But before we look at estate planning, we must consider the changes introduced in the Autumn Budget 2024.

What changes did the Autumn Budget 2024 introduce?

Four key changes in the Autumn Budget 2024 impacted Inheritance Tax.

Freeze on nil-rate band

The nil-rate band of £325,000, below which you do not pay IHT, has been frozen until 2030. It had already been frozen by the previous government until 2028. The Chancellor’s Autumn Budget 2024 extended that freeze until 2030. That means if your net estate is over £325,000, it will be subject to IHT.

Unused Pensions to be subject to IHT from April 2027

The Autumn Budget 2024 introduced a new rule regarding unused pensions. Currently, unused pension funds fall outside the estate for IHT purposes. That means they do not count as part of the estate and are not subject to IHT. Some people who did not need to rely on their pension earmarked it for distribution to others after their death as it was help outside their estate and not subject to IHT.

However, from 2027, any unused pension fund will be subject to IHT as part of the estate. The government has launched a technical consultation to determine how this will work in practice.

Agriculture and Business Property Relief changes

Farmers and businesses are entitled to 100% relief on their business assets, which means these assets are not subject to IHT. However, starting in April 2026, any agricultural or business assets over £1 million will be subject to IHT at a reduced rate of 50% of the current rate. That means IHT will be charged on those assets over £1 million at a rate of 20%.

Residency-based IHT for former “non-doms”

The Autumn Budget 2024 abolished the “non-dom” status and moved to a residence-based taxation position. A foreign national who resides in the UK for at least 10 out of 20 tax years will be considered a “long-term resident”. Once this status has been established, their worldwide assets will be subject to UK IHT. Before this budget, their foreign assets were excluded from any IHT calculations. This will also impact offshore trusts, where any assets placed in an offshore trust, whilst the long-term resident held non-dom status, can now be included in the estate for IHT purposes.

Using Gifting to reduce your exposure to Inheritance Tax

Estate planning always considers lifetime giving as part of mitigating against IHT. When you dispose of assets through gifting, you potentially reduce your exposure to IHT. However, there are certain conditions you must fulfil if your estate is to avoid paying IHT.

Taper Relief (the 7-year rule)

It is generally known that if you gift property, assets or investments more than seven years before you die, these will no longer be considered part of your estate. All such gifts are considered potentially exempt transfers because they must meet specific criteria to be excluded from IHT calculations.

Potentially exempt transfers

HMRC define a potentially exempt transfer as a lifetime transfer of value that satisfies three conditions:

• It is a transfer by an individual made on or after 18 March 1986
• It would be a chargeable transfer apart from Section 3A of the Inheritance Tax Act 1984  (or, if only partly chargeable, is a potentially exempt transfer to the extent that it would be chargeable), and
• It is a gift to another individual or a specified trust.

This means the transfer must be for value to an individual or a specified trust where the transfer would be subject to IHT. Transfers between spouses do not count because they are exempt from IHT.

This means that if the gift donor survives for more than seven years, the gift’s value falls outside the estate and is not subject to IHT. However, the donor must divest themselves of the gift entirely.

Gifts with reservations

Gifts with reservations occur when the gift donor makes the gift but retains an interest in or benefits from it. A good example of this is when a parent transfers ownership of the family home to the children but remains living in it rent-free. While the donor has made a gift of the ownership, the donor benefits from the gifted property by continuing to live in it. In such circumstances, the house’s value would be included in the estate for IHT purposes.

Additional gift exemptions

There are also annual gift exemptions everyone enjoys. You can make annual gifts totalling £3,000 to anyone you want. If a child is getting married, you can give them a gift of £5,000. You can also make a wedding gift of £2,500 to a grandchild and £1,000 to anyone else.

In addition, you can make as many small gifts of £250 as you like.

Gifts to charities

Any gift you make to charity is exempt from IHT. This applies during your lifetime and on death. In addition, if you leave 10% or more of your estate to charity, the rate of IHT your estate will pay will be reduced from 40% to 36%. This can lead to substantial savings in very large estates.

Estate Planning following the Autumn Budget 2024

The overall rules about making gifts have not changed. However, the budget brought assets into the estate that previously were outside it and not subject to IHT.

Your tactics may need to change to address this. Regular lifetime giving provided it is not a gift with reservations, probably remains the most straightforward way of reducing the value of your estate.

If you have an unused pension, depending on your personal tax situation, it may be beneficial to withdraw some of the fund and gift it to others. This would still be subject to an immediate income tax charge but might be IHT-efficient.

Dealing with the changes to agricultural and business property relief can be challenging as these are integral assets for your business. You will need to consider family involvement in the business and the basis of ownership of the assets. If you transfer ownership but continue in the business, it will likely be viewed as a gift with reservations.

The UK government has argued that allowances available to set against agricultural and business property are up to £3 million. However, that level of relief can only be achieved in limited circumstances.

Seek legal and financial advice before doing anything

Whatever you do, you must take legal and financial advice if you intend to take steps to mitigate your IHT exposure. Failure to carry out any estate planning and lifetime giving correctly can lead to the value of property, assets, and investments being added back into your estate’s value and subject to IHT.

The post Strategic lifetime gifting and how to minimise your IHT liability during your lifetime. appeared first on SJP Law.

In an unusual twist, Malcolm Chenery used a Young’s frozen fish box and a Mr Kipling mince pie box to set out his wishes, leaving his £180,000 estate — including a three-bedroom house, jewellery, and a pottery collection — to the charity Diabetes UK. Despite the unconventional medium and the two pieces of card not being physically connected, the court upheld the will.

Under English law, a will is valid if it complies with the Wills Act 1837, which requires it to be in writing, signed by the person making it, and witnessed by two independent individuals present at the same time.

While this case highlights that a will doesn’t have to follow a traditional format to stand in court, unconventional approaches often lead to unnecessary stress and costs for executors and beneficiaries. Even with the family supporting the charitable donation, this case caused additional complications.”

Simple preparation can avoid such confusion.  One important step is to organise financial documents and to create a clear list of assets, which should be kept in a place known to the executors and kept up to date.  Monika Bone from our Private Team explains that “Executors must obtain valuations for all your assets — whether property, crypto currency, premium bonds, or pottery collections like Mr Chenery’s.  Providing account details in advance can save time and stress.”

Delay in sending information about assets to HM Revenue and Customs following a death can have serious financial consequences. Executors are personally accountable for handling estates correctly, including paying inheritance tax (IHT) on time. IHT is due within six months of the month of death, with HMRC charging 7.5% interest after that time. Delays can result in penalties and mounting costs, which beneficiaries might expect executors to cover from their own funds.

Executors must also act within two years to claim some of the tax-free allowances for married couples or civil partners, who can combine allowances to pass up to £1 million tax-free. Missing this deadline can reduce the inheritance beneficiaries receive.

While the exemption for gifts between spouses is ‘absolute’ and does not have to be claimed, the transferred nil rate band does have to be claimed, and this is where the two-year time limit applies.

“Think of estate planning as a gift to your loved ones,” added Monika. “Discussing your plans with family — whether they’re included or excluded — can help avoid disputes and ensure your legacy is handled smoothly. Attention to detail now can make a world of difference later.”

Tips to make things simple for your executors

An executor is legally responsible for carrying out the instructions set out in a will.  Executors may be family, friends or a professional, but they must make sure everything is done correctly at every stage, from collecting details of all the assets, reporting to HMRC, obtaining probate, through to distributing money and other assets to beneficiaries.  Agreeing to the role and having the opportunity to discuss your wishes will help them prepare, together with some other simple steps: 

1. Draft a clear, valid will

Ensure your will complies with all legal requirements and reflects your wishes clearly. Anything that could lead to disputes should be checked and ideally discussed with those involved. Consider consulting a solicitor to ensure all bases are covered, including provisions for guardianship, specific bequests, and how you want to share your estate.  Whatever the cost of having a will drawn up by a professional, it will be small when compared with the costs involved if the validity of a home-made will is questionable.

2. Store your will securely

Keep your will in a safe but accessible place and inform your executors where it is stored. Options include a solicitor’s office, a bank’s safe deposit box, or a registered will storage service. Avoid storing it in a place that could be overlooked or difficult to access, such as a personal safe with an unknown combination.  

3. Review and update regularly

Life events — such as marriage, divorce, the birth of children, or a significant change in assets — can affect the validity or relevance of your will. Regularly reviewing your will ensures it remains aligned with your current wishes. 

4. Consider your digital assets

In today’s digital age, estate planning must include online accounts, digital assets, and even social media profiles. Leave instructions for accessing important accounts and consider appointing a digital executor if necessary.

5. Plan for taxes

While the tax-free threshold for inheritance tax (IHT) is £325,000 in the UK, estates exceeding this may be liable for significant tax payments. Proper estate planning can help mitigate IHT liabilities, for instance, by using exemptions, gifts, or trusts effectively.

6. Communicate with executors and beneficiaries

Discussing your plans with all involved reduces misunderstandings and surprises later. Executors should understand their responsibilities, and beneficiaries should be aware of your intentions to help manage expectations.

The post How to avoid making mincemeat of estate planning appeared first on SJP Law.

What is a trustee?

A trustee is a person or a firm that holds and administers property or assets held in a trust for the benefit of a third party. A trust can be created for a variety of purposes. For example, trusts can be established in bankruptcy situations or in certain types of retirement plans or to manage assets for a minor or someone lacking capacity. Alternatively, a trust may be established to hold assets with income and capital to be distributed to beneficiaries over time.

Trustees have a fiduciary responsibility to the trust’s beneficiaries which means the trustee must act in the best interests of the beneficiaries when managing the trust assets.

What are a trustee’s duties?

A Trustee’s duties are many and varied.

Making Decisions

Trustees must make all the decision regarding the trust. They must decide on the acquisition, application and disposal of the assets. They also need to implement the purposes of the trust for the benefit of the beneficiaries. They must also make decisions within the rules of the trust and have a duty to exercise reasonable care, skill and diligence when making decisions and managing the assets of the trust.

The Trustee Act 2000 extended the power of investment trustees have whilst protecting the interests of the beneficiaries against abuse of these powers.

When making decisions, unless otherwise provided for in the trust document, trustees decisions must be unanimous.

Managing assets

Trustees are responsible for managing the assets in a trust, be they money, financial instruments, property or other asset types (for example, cryptocurrency). The assets must be managed for the benefit of the beneficiaries under the trust.

The 2000 Act empowered trustees to acquire freehold or leasehold land in the UK. Also, if the trust is a discretionary trust, the trustees will have more freedom to make decisions provided those decisions are for the benefit of the beneficiaries.

Trustees can instruct professionals to act on behalf of the trust to assist in the acquisition and disposal of assets.

Act in the best interests of the beneficiaries

The trustees must, at all times, act in the best interests of the beneficiaries. They must be impartial to ensure no single trustee benefits over others. They must also avoid any conflicts of interest that might arise in relation to themselves and their own affairs and the trust estate under their charge.

Follow the rules of the trust

The trust deed establishing the trust will set out the powers of the trustees and the rules designed to benefit the beneficiaries. Trustees cannot ignore those rules when making decisions and must always follow those rules even if a beneficiary disagrees with them.

If the trust is a discretionary trust, the extent of the discretion will be specified in the trust. Again, trustees should ensure they do not exceed the powers or breach the rules set down in the trust document.

Keeping accounts and paying taxes

The trustees will be responsible for accounting to HMRC for any taxes due by the trust. The range of taxes might include Inheritance Tax, Capital Gains Tax and Income Tax. The Trustees will prepare accounts each year and submit returns to HMRC in order to account for any tax due. Trustees can instruct accountants to prepare accounts and to advise on taxation matters.

Complying with the common law duty of care

All trustees must comply with the common law duty of care. That means they must take the precautions that an ordinary prudent person of business would take in managing similar affairs of their own.

Think carefully before accepting a trustee appointment

The duties and responsibilities of trustees are onerous and can take up a great deal of time. They may bring you into conflict with the beneficiaries of the trust and this can be challenging, especially when they are family members.

Before accepting the position, take professional advice about the duties and responsibilities and familiarise yourself with the rules under which you are being asked to act as a trustee.

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