Herald - Issue 416

v SPEAK TO THE EXPERTS FOR THE BEST ADVICE v 9th December 2021 • The HERALD • Page 63 BRYANT & CO Chartered Accountants & Business Advisers We provide a wide range of accounting and business services to individuals, partnerships and limited companies. We specialise in working with family owned businesses, providing guidance and advice as appropriate. Our services include: • Annual Accounts • Bookkeeping • VAT • Payroll and CIS • Personal and Corporate Tax Returns • Management Accounts • Business Advice • We also provide training on the use of Sage and Quickbooks, and the implementation of computerised and manual accounting systems. • Meetings can be arranged to suit your needs, including evenings and weekends if more convenient to you. • The initial meeting is free of charge, regardless of the length of time, as we believe it is important to develop a good working relationship from the outset. • All fees are agreed in advance of any work being undertaken. Please call Peter or Lisa on 023 8089 4982 to arrange a meeting to discuss your business needs. You can also contact Peter on 07976 808969, or email us at info@bryantandcompany.co.uk Have a look at our website www.bryantandcompany.co.uk for a fuller understanding of our business. ASK A PROFESSIONAL Making Christmas Gifts under Powers of Attorney by Lindsay Taylor, CGM Solicitors Christmas is known as the time of gi ing but few people are aware of the rules relating to gi s under a Lasting or Enduring Power of Attorney (‘POA’). An attorney may wish to make a gi on behalf of the donor (the person who made the POA) for a number of reasons. A person can become incapable of handling their nancial a airs instantly through a catastrophic incident or gradually through mental decline. Either way, it is common for someone to not have fully considered their estate or for circumstances to have changed to an extent that inheritance tax becomes an issue as assets are spent on care. It is important for an attorney to always make sure there are funds available for the donor’s future care however if you have established that inheritance tax may be payable on the death of the donor, you can consider how to mitigate the tax. Gi ing is a popular method, but you should be aware of your responsibilities as attorney. In order to make gi s, you will usually rst require the authority of the Court of Protection. You may also ask the Court to allow direct gi s to be made to bene ciaries in any will already made by the person in order to reduce the inheritance tax liability on death. If you fail to obtain the permission of the Court, you risk being removed by the Court of your position, having to repay the funds and being investigated by the police for fraud by abuse of position. ere are exceptions to this general rule which exist in order that the attorneys can make simple gi s out of the estate. ese must be gi s made on a customary occasion such as to relations on birthdays or at Christmas. Especially if this was performed whilst the person had the capacity to make these gi s themselves. Charities can also bene t where the person was a regular supporter. Finally, the value of the gi must be reasonable taking into account the circumstances and the funds available. If the donor made regular gi s in previous years, an attorney can continue to make these. What will be frowned upon is a huge increase in the value of such a customary gi - such as £50 becoming £5,000 the following Christmas. is is not a fanciful gure as the O ce of the Public Guardian who oversee POAs has cited such as being an event into which they had to investigate. For current or future donors reading this article, it is helpful to know what you would have wanted to happen with respect to gi ing and instructions or guidance can be written into the POA itself. Lindsay Taylor is an Associate Solicitor based at the Covid-secure Hythe O ce. For your conveyancing and private client needs you can contact CGM Solicitors on: 023 8084 2765 for an appointment.