Q. My father died recently leaving behind him a substantial estate, much of which was property and assets that he amassed whilst married to my mother (who pre-deceased him). I was always lead to believe that my father’s estate would be shared between me and my two siblings (and I have seen previous versions of his will that stated that that was to be the case). However, I have learned that the entire estate has been passed to my eldest sister only, who I suspect may have manipulated my father into changing his will. Is there anything I can do?
A. First, I am sorry to hear of your loss.
It is possible to contest your father’s will and you ought to seek professional advice as soon as possible. You and your adviser may wish to consider issues such as whether your father’s last will, purporting to leave his entire estate to your sister, was valid and whether that will failed to make appropriate provision for you and your other sibling.
I suggest you consider also whether the person who prepared your father’s will acted properly, whether there were any indications that he lacked the mental capacity to amend his will and/or was being coerced. You ought consider also whether there are grounds for investigating the conduct of the trustees or executors.
I have assumed that your sister is contesting any claim that you might have upon your father’s estate. However, it might be that, having consulted a solicitor, your sister acknowledges that your father’s estate should be divided between all of his children. Similarly, she may consider it sensible to share his estate with you rather than expending it on what is likely to be expensive and acrimonious litigation.
In short, this is a very complex area of law. I recommend that you seek the advice of a solicitor, who is experienced in dealing with contested probates, as soon as is practicable.
Q. I have heard a rumour that national insurance is set to be abolished. Is this correct?
A. Not really.
Conservative MP, Ben Gummer, has proposed that national insurance be renamed as “earnings tax”. The move – which is reported to have the support of the Chancellor, George Osborne – is intended to encourage the working population to see the two taxes as being essentially the same thing.
It is expected that by renaming national insurance earnings tax it will pave the way for national insurance and income tax to be merged. However, it is likely to be some time before such a change is implemented.
Q. I am the HR Manager of a local owner-managed business. I am responsible for ensuring that we comply with our obligations in respect of auto-enrolment (which bite in autumn of this year). However, I have heard that the government is set to simplify the auto-enrolment regime. Is this correct and, if so, what are they set to change?
A. You are correct that the government is set to amend the auto-enrolment regime. It plans to introduce a series of simplifications in order to reduce the administrative burden imposed upon employers.
The amendments follow a Department of Work and Pensions consultation, undertaken in March 2013, in respect of a series of technical amendments to the administrative aspects of auto-enrolment and which, if implemented, would permit employers to exclude certain employees from the auto-enrolment process.
For example, in its response to the consultation, the DWP stated that there is a “strong case” for exempting employees from auto-enrolment who have tax-protected status in respect of their existing pension savings, i.e. people who have reached the lifetime allowance (the maximum tax-efficient amount a person is able to save into a registered pension scheme over their lifetime) and who have either fixed protection or enhanced protection. If such people are enrolled automatically and fail to opt-out immediately, they would lose the relevant protections and would face a tax liability of 55 per cent of their pension savings in excess of the lifetime allowance.
Similarly, it is anticipated that people for whom retirement is imminent or who have recently cancelled membership of their employer’s pension scheme (having joined under a contractual entitlement) will be exempted from the auto-enrolment requirements.
The DWP has confirmed that is developing proposals for “workable exceptions” to the requirements which ought to deliver “real value for both individuals and employers”. The proposals will be contained in a draft statutory instrument, although there is no timescale for when the amendments are likely to be implemented.
If you have any queries regarding your obligations in respect of auto-enrolment, I recommend that you seek advice from a chartered financial planner, who specialises in corporate planning, as a matter of urgency.
If you have a question you would like Trevor to answer, please email it to: yourmoney@rwpfg.co.uk or post it to Your Money, Rutherford Wilkinson Ltd, Northumbria House, 21-23 Brenkley Way, Blezard Business Park, Newcastle upon Tyne, NE13 6DS.
0191 217 3340
