denotes premium content | Jan 9 2009 Elderly Client Adviser archive
Volume 6 Issue 6
Features
Equity release – further commentary following Michael Stennett’s article in previous edition of ECA
In the last edition of ECA, Michael Stennett gave an informative and interesting analysis of home reversion and home income plans. However, it is fair to say that any discussion of equity release products would be incomplete without reference to other mainstream options, such as interest deferral schemes.
The impact of the Trustees Act 2000 on professional trustees
Trustees have a clear duty to act in the best interests of the beneficiaries. Unfortunately many trustees have historically believed that the best method of protecting the interests of their beneficiaries is to protect the capital. They therefore invest in low risk/low income areas which, perversely actually disadvantage beneficiaries over the longer term. Trustees however are not only required to consider the interests of the life tenant(s) but also those of the remaindermen (is this just a US legal term?). This apparent conflict coupled with restrictive investment options has left professional trustees caught between a rock and a hard place and resulted in a number of high profile cases.
The new Pension Credit
In the last issue of ECA, Mervyn Kohler drew attention to some of the benefit and allied changes for people of pension age. This article considers the proposed Pension Credit, which is due to come into effect in 2003. The government announced in the Queen’s speech that a bill would be introduced but at the time of writing this has not happened, and what is said below should be read subject to the Pension Credit Bill when it is eventually published.
Dying tidily - the perfect client’s paperwork
This Article seeks to highlight the necessity for all professional advisors to be aware of the importance of their clients having their records and paperwork in order for their financial affairs. This priority has been enhanced by the introduction of the revised IHT Form 200 demanding much greater detail and accuracy combined with the increased readiness of the Inland Revenue to impose penalties under Section 247(1) IHT Act 1984 and under Section 248 IHT Act 1984 (fraudulent or negligent supply of information provided by persons liable to IHT and by others).
Proprietary estoppel
Proprietary Estoppel under Gillett v Holt applied to support carer interests in property: Campbell v Griffin, Laverick, Bennett and West Sussex County Council – Court of Appeal Wednesday 27th June 2001. Reported by Smith Bernal Casetrack (full transcript) and LTL June 28 2001.
The future of the Court of Protection
The Court of Protection depends heavily upon the support that it receives from its administrative arm and for many years this has been the Public Trust Office. While writing in this journal last year of controversy over its future following a Quinquennial Review I stated: “The PTO will cease to exist as such from April 2001. The Court Funds Office is to be transferred to the Court Service and the Public Trustee’s trust function will pass to the Official Solicitor. … The real advance is that a new core body is to be established to carry out the PTO’s mental incapacity services. The choice of name is appaling - the Mental Incapacity Support Unit - but that is not set in stone and I shall be suggesting the Protection and Support Service unless we can have what we really need: a Public Guardian. … I would like any new body to remain under the control and supervision of the LCD until it has settled down.”
