Welcome to 2009 and the January/February issue of Elderly Client Adviser. This issue looks at equity release, wills and the transferable nil-rate band, changes to the intestacy rules, the FSA and investment advice, and financial abuse of the elderly.

I hope you all had a good Christmas and New Year. As 2008 turned into 2009, rather than flinging open our doors to 2009, shaking it vigorously by the hand, slapping it on the back and inviting it in out of the cold for something warm, I think many were peering hesitantly through the peephole or opening their doors with the security chain firmly on… some might still be found hiding under the bed.

Certainly this New Year, rather than new beginnings, brings with it the end of many careers, the demise of some practice groups or the firm as a whole, and a lot of management (rather than New Year) resolutions.

However, let’s look at the positive – I trust that the 2.5 per cent decrease in VAT has solved all your monetary woes? I know it sent me running to the shops to grab as many bargains as I could find, only to get to the tills and realise I didn’t actually have any money to spend in the first place. Had I discovered a fundamental flaw in the government’s plan? Surely not…

The presumption by the government that we are all a little on the stupid side has not gone unnoticed. Nor has the fact that we are going to have to pay in the future for what is happening now – although I have a feeling I will be paying for something I will never see any return on, akin to last year’s gym membership...

I’m sure the decrease in VAT was welcomed with open arms by firms and businesses alike, who thought nothing of the extra hours they had to put in with bills having to be recalculated, changes to pricing and fees, the potential updating of IT systems and the year-end accounts to look forward to. Extra work at a time where people are already flat out trying to keep their jobs and stay in business is not a welcome thing, especially when it happens in the lead up to Christmas.

Of course, the best part was the initial complete lack of guidance firms received, causing much confusion at the start with everyone wondering which rate to apply and when. On 11 December 2008, the Law Society did issue a practice guidance note, however this was 11 days after the change was implemented and 18 days after it was announced – 18 days during which time firms were trying to get their bills out before month-end and the Christmas holidays.

But, as we settle into 2009, all that is forgotten as Gordon Brown announces that in fact the recession looks to last a little longer than previously predicted… until somewhere in the region of 2011. One dreads to think of the consequences of this prolonged recession on the legal profession, but first things first – January tax returns. If your return to the office brought with it the realisation that tax liabilities may not be met, then 0845 302 1435 might be your lucky number. This leads direct to HM Revenue and Customs’ business support service, introduced on 24 November 2008, to help businesses struggling in current economic conditions, allowing the possibility of payment deferral on satisfaction of certain conditions.

I would like to wish you all a happy and (fingers crossed) prosperous 2009 and to thank all those who have helped me with this issue of Elderly Client Adviser.

Joanna Lee

Editor

If there are any issues you would like to see covered or if you wish to contribute please do get in touch. Any feedback would also be very gratefully received.