The Court’s recent decision in the case of Quigley V Masterson has highlighted that it is possible to change the way homes are owned by actions not specifically intended for that purpose. 

When two or more people buy a property together it is possible for them to own the property in one of two ways, either as ‘joint tenants’ or ‘tenants in common’.  If the property is owned as ‘joint tenants’ they are all taken to own the whole property and do not have a specific share in the property which is theirs.  Thus if one of them dies the remaining owner or owners continue to own the whole property and no part of the property passes into the deceased owner’s estate. 

Where a property is owned as ‘tenants in common’ each owner has a specific share which on their death will pass in accordance with the Law of Intestacy (that is the law which decides who receives your property if you do not make a Will) or in accordance with the deceased person’s Will. 

If you wish to change from one way to the other the change from tenants in common to joint tenants can be achieved by all the owners making an appropriate Deed containing a declaration to the effect that henceforth they wish to own the property as joint tenants.  

To change from joint tenants to tenants in common is also straight forward.  Normally a notice is served by one of the joint tenants on the other(s).  However although there is fairly standard documentation which can be used to affect this change, change through a course of action or dealing is also possible.  This is known as Severance of the Tenancy.  

In this recent case a property was jointly owned one party issued proceedings in the Court of Protection requesting the sale of the property.  In those proceedings statements were made by that party which clearly indicated that in their view each party had a 50% share in the property.  The severance was completed when a daughter of the other owner became a party to the proceedings to act on his behalf.  

This is of concern as the change in the manner of ownership would not have been apparent from looking at the title to the property and had in this case to be established by the Court.  

The manner in which property is owned can be of importance not only with regard to inheritance, but also inheritance tax and liabilities for care homes.  It is important that everyone is aware of how they own their home and why they own it in that way so that they do not change the way in which the property is owned inadvertently. 

If you are uncertain of how you own your home or want advice as to how you should own your home please do not hesitate to contact Jonathan Dorman on 020 8422 5678.

The Law Society has called for changes to the laws relating to unmarried couples who live together on the breakdown of the relationship.  This follows the Government’s announcement that it would not be taking forward in the current Parliament the Law Commission’s proposals for reform.  This means the problems faced by unmarried couples on the breakup of the relationship and as a result for their children will continue.

For more information on this subject please contact Jonathan Dorman on 020 8422 5678.

The Office of Public Guardian have issued revised forms and guidance for those applying to register a Lasting Power of Attorney or Enduring Power of Attorney.  The revisions highlight the changes in the offices fees.

There is also amended guidance to clarify who may and may not act as a certificate provider for a Lasting Power of Attorney.

This makes it clear that the certificate provider can be someone who has known the person making the Lasting Power of Attorney for 2 years or has relevant skill or knowledge to be able to be able to form a professional judgement about that persons understanding.

Somebody with relevant professional skills must be a registered healthcare profession, a solicitor, barrister or advocate, a registered social worker, an independent mental capacity advocate or someone who considers they have the relevant professional skills and can specify what they are on the form itself.

The guidance also makes clear that family members cannot be certificate providers.  This includes spouses or civil partners or people living together, children and grandchildren, parents, grandparents, brothers and sisters including half-brothers and half-sisters, aunts and uncles, nieces and nephews, somebody related by marriage such as a son-in-law or daughter-in-law, step-parents or step-children.

There may be other relationships that the public guardianship office considered to be ineligible but are not listed above and therefore it is inadvisable to use anybody who has any family connection whatsoever.

For information on Lasting Powers of Attorney please contact Jonathan Dorman on 020 8422 5678.

The Office of Public Guardian have issued revised forms and guidance for those applying to register a Lasting Power of Attorney or Enduring Power of Attorney.  The revisions highlight the changes in the offices fees. 

 There is also amended guidance to clarify who may and may not act as a certificate provider for a Lasting Power of Attorney. 

 This makes it clear that the certificate provider can be someone who has known the person making the Lasting Power of Attorney for 2 years or has relevant skill or knowledge to be able to be able to form a professional judgement about that persons understanding. 

 Somebody with relevant professional skills must be a registered healthcare profession, a solicitor, barrister or advocate, a registered social worker, an independent mental capacity advocate or someone who considers they have the relevant professional skills and can specify what they are on the form itself. 

 The guidance also makes clear that family members cannot be certificate providers.  This includes spouses or civil partners or people living together, children and grandchildren, parents, grandparents, brothers and sisters including half-brothers and half-sisters, aunts and uncles, nieces and nephews, somebody related by marriage such as a son-in-law or daughter-in-law, step-parents or step-children. 

 There may be other relationships that the public guardianship office considered to be ineligible but are not listed above and therefore it is inadvisable to use anybody who has any family connection whatsoever.

For more information on Lasting Powers of Attorney please contact Jonathan Dorman on 020 8422 5678.

A recent report has indicated that one in ten people making Wills in Britain have included their passwords in their Wills so their families, friends and executors can access their personal data after they have died.  This is worth considering when drafting your will or updating it.

For advice on Wills and Trusts please contact Jonathan Dorman, Head of Private Client  on 020 8422 5678.

HM Revenue & Customs have on the 14th September reissued parts of their manual for Inheritance Tax including the section which relates to exemptions for regular payments out of income.  They have confirmed that in order to qualify for this exemption the gift must form part of the donors normal expenditure, it must be paid out of income and leave them with enough income for them to maintain their normal standard of living.  Part of a single gift may qualify for the exemption and other parts of the gift might be chargeable to tax or might be exempt under another provision. 

 The exemption does not apply to gifts on death, on the ending of a life interest in Trust property or transfers which are treated as potentially exempt transfers i.e. a transfer of any amount which is made out of capital to an individual.  It also does not apply to payments of premiums of a life policy which are linked to an annuity or transfers of capital assets save in limited circumstances.

 If you would like to speak to us about our Will, Trusts and Estate Planning services, please contact either Jonathan Dorman or Gail Abrahams on 020 8422 5678.