Paul Daniels Gets Large Tax Bill – For Caring!
Not only did Paul Daniels save the State tens of thousands of pounds by keeping his mother out of residential care.
He got a large Capital Gains Tax Bill for the priviledge!
Apparently it is quite common for children not to bother taking advice in these circumstances and ending up with a double whammy of tax plus there own expenses, accoding to the Dail Mail Articel on the Paul Daniels debacle.
I think the issue is that people don’t realise they need advice, so they rush blindly into doing the “right thing” only to get a sting in the tail. Lots of expense, grief at the death, and then a tax bill for saving the State money.
How to avoid a large Capital Gains Tax Bill.
Very often, we can effect a simple cure for situations such as this, but only of we are brought in early enough.
We would also need to ensure that there was a valid and relevant Last Will in place, and Lasting Powers of Attorney can be very important in these circumstances. No-one really wants the Local Council Social Services Department to run their life and their finances – do they? But this is the fate of thousands of people every year, who haven’t taken the simple precaustions we can help them put in place.
When should you start Legal Planning?
At 18, your parents cease to have any rights over you life, without a Court Order, or Lasting Powers of Attorney. So ideally, you would start on your 18th birthday. Start co-habiting with anyone (even flatmates these days need to make it very clear that that is all they are!) and it is probably that a right of dependenancy could come into being, so an unexpected death with no carefully thought through and up to date Will could lead to a Court dispute. Equally, and accident (Schumacher) or a stroke could mean that the wrong people take charge of your life and do the wrong things.
Legal Planning is very much an ongoing process, and our Peace of Mind Service helps people to develop and maintain their legal plans from 18 onwards, through parternships, marriage, divorce children, disability and misfortune, and even protecting assets from beyond the grave.
So why not get in touch, and at least ask for our one page Guide to Estate Planning?