April newsletter

Troon Kilmarnock Irvine Galston

8 Academy Street Bank Chambers, 42 Bank Street Galt House, 78 East Road 18 Wallace Street

Troon, KA10 6HS Kilmarnock, KA1 1HA Irvine, KA12 0AA Galston

Tel: 01292 313737 Tel: 01563 533121 Tel: 01294 274097 Tel: 01563 82-216

Fax: 01292 317856 Fax: 01563 570840 Fax: 01294 279692 Fax: 01563 822188

troon@mcsherryhalliday.co.uk kilmarnock@mcsherryhalliday.co.uk Irvine@mcsherryhalliday.co.uk rural@daleandmarshall.co.uk

www.mhdm-law.co.uk

The working practices of the legal profession have gone through more changes in the last decade than in its entire history. You can now access most of the law online and our role of interpretation and advice is as vital as it has always been to enable us to continue to provide the provision of high quality legal services at a reasonable cost. Our experience is invaluable to satisfy today’s client expectations. This newsletter is the first of a regular update which will be posted on our website www.mhdm-law.co.uk I hope you will find this of some interest

Jeff Halliday

Managing Partner

Introducing WRAP - Wealth Management Solutions

We are shortly about to offer our clients the new “Wrap” platform. This is an internet based platform providing access to Financial Services products and tax wrappers via one easily accessible portal. Our clients will have access to a full range of UK retail open-ended investment companies and unit trusts.

This latest technology allows our clients bespoke portfolio construction to incorporate ISA’s, Self Invested Personal Pensions (including Protected rights), general investments and both Onshore and Offshore life assurance Bonds. For liquidity purposes this enables you to view your total investments held within the portfolio across all the products and applicable tax rules.

Your consolidated information will relate to your entire range of fund holdings and product wrappers whilst also providing you with the ability to obtain annual tax statements and up-to-date information as and when required.

In order that your investment portfolio can be managed effectively, switches can be carried out within the platform between products and fund managers at no cost.

As we are Independent Financial Advisers, we can offer a whole of market service to source the most competitive and suitable product available.

For information on our Wrap or the other financial services inclusive of mortgage, retirement or pension advice, please contact Alan Hewitt on 01563 533121 (option 3) or send an email enquiry to ah@mcsherryhalliday.co.uk

Property Update

The last 2 years has resulted in a market downturn which is now beginning to show signs of a recovery - despite continued lending restrictions. The introduction of Home Reports has changed the marketing structure for sales. Through our GSPC network we deliver a cost effective professional package which allows buyers to view a Home Report on line free of charge. For more information contact Margaret Taylor on 01563 533121 (option 1) or send an email to kproperty@mcsherryhalliday.co.uk

Should I give away my assets to my children, particularly the family home, to avoid nursing care charges?

Important factors to consider :-

· If a local authority considers that you have divested yourself of capital then they can treat the capital divested as “notional capital” which means it is calculated back in to your capital for assessment purposes.

· Most title deeds are in a joint survivorship basis which means on the first death the survivor inherits the property without it coming in to the deceased’s estate. It is possible to “evacuate” the special destination and to own the property in equal halves but with no survivorship destination. On a first death half of the property could pass to your children in trust and therefore in the eventual nursing home case at least half of the property would be discounted as it is not within the ownership of the last survivor. There are however taxation issues which require to be considered.

· What happens if your children die before you and their estate, which includes your house, ends up in the hands of a third party?

· What if your children are sequestrated and the property then becomes vest in a trustee in bankruptcy?

· What happens if your children become incapax?

· What happens if you fall out with your children?

· Who is liable for maintenance of your property?

· Loss of control. You will not be able to sell your property, downsize or raise capital without your children’s consent.

· Choice. If you are funding your own care, you or your family select the location and standard care.

This is what in legal speak is “a crystal ball” question.

McSHERRY HALLIDAY DALE and MARSHALL is authorised and regulated by the Financial Services Authority.

FSA Registration number 113475.

The guidance and/or advice contained within this website is subject to the UK regularatory regime and is, therefore, primarily targeted at customers in the UK. Taxation and Trusts are not regulated by the Financial Services Authority.