With the Conservatives stealing the show by blowing the Labour Party out of the water and making victorious history, Boris Johnson has stood saying Brexit is now the ‘unarguable decision of the British People’.
For three and a half years the UK has stood still waiting for a broken Parliament to deliver Brexit and leave the EU but as the elected new government, Boris Johnson made a simple promise ‘to get Brexit done’ and take this country forward.
But what does it mean for the Wills and probate industry?
Social Care
Due to decades of economic growth and medical pioneering, people are living a lot longer, fruitful and healthier lives. However, coupled with the rise of dementia and other debilitating chonic diseases has meant the elderly care system has been put under immense pressure and continues to increase.
All political parties made considerations in their manifestos for social care and were all broadly in agreement with how to make improvements to the social care system, they did, however, vary in the amount of money needed to invest in a better system.
The Conservatives have said “We need to have a system to give every person the dignity and security that they deserve”. And have come up with a long-term for social care and committed to an ‘ambitious’ three-point plan as follows:
1) £1 billion extra of funding every year for more social care staff and better infrastructure, technology and facilities.
2) We will commit to urgently seek a cross-party consensus in order to bring forward the necessary proposal and legislation for longterm reform.
3) The prerequisite of any solution will be a guarantee that no one needing care has to sell their home to pay for it.
Pensions
Millions of Brits are facing a financial crisis in retirement due to being unprepared by not putting enough money aside for later life. A recent documentary which aired on channel 5 entitled ‘The Britain’s Great Pension Crisis’ has stated that nine million brits are ‘sleepwalking into retirement’ and two thirds of employees aged 45 and over face poverty in old age unless they act soon.
Furthermore, over five million people (37 per cent) also don’t know how much they’ve already saved in their pension, according to insurer Aviva.
On the pension issue, the Conservatives have said they “will reintroduce legislation that protects pension pots from being plundered by reckless bosses, helps savers be better informed with pension dashboards, and create a new style of pension scheme which is more sustainable for workers and employers.
Today’s Wills and Probate hears from practitioners and key stakeholders across the industry on their view of the election results and how it may impact the Wills and probate industry.
Tara McInnes, senior associate at Shoosmiths LLP said:
“As news breaks of a landslide conservative victory in the general elections, questions may be raised as to how this may affect our industry.
“Whilst nothing can be predicted with any certainty, what is clear from today’s result is that the Conservative Party now have a mandate to remove the blockage in Parliament. Most notably, this means Brexit (or more accurately phase 1 of Brexit) will be delivered by the 31st of January.
“Whilst our industry may be relatively sheltered from the impacts of Brexit generally, there is no doubt that some impact will be felt (either now or in the long term).
“The economic change to our economy risks affecting private wealth (and the value of estates). This change will either feed a rise in the number of claims brought against estates, if Brexit improves the economy, or in contrast the economic change could stagnate the economy, reduce property prices (which are the main assets of estates) and reduce claims given that low value estates are difficult to contest due to the rules on cost recovery, in particular proportionality. In addition, if the property market stalls, estates may struggle to generate cash to settle liabilities and make funds available to assist parties reaching out of court settlements.
“Whilst Brexit is a key issue, one further and notable impact of the election may be that amendments are made to inheritance tax (or even its abolition). Currently inheritance tax can apply to estates starting at a modest value of £325,000 (assuming there is no inherited relief from a spouse). If the threshold is amended, or the tax abolished, estates become significantly more valuable which would undoubtedly encourage more claims against estates and the expansion of our industry.
“Overall, the election result is unlikely to affect our industry over night. However, as with any election, the benefit of a new government will on be known in the long term.”
The Law Society of England and Wales commented following the election results:
“Repairing Britain’s justice system and championing the rule of law must be priorities for the new government alongside negotiating an ambitious future deal with the European Union”
David Greene, The Law Society of England and Wales’ vice president added:
“Our legal system needs an immediate and sustained boost in funding if Britain is to retain its world-wide reputation for justice and fairness.”
“As the new government takes office, the justice system of England and Wales is on its knees.
“Years of under-funding have led to crumbling courts, a crisis in criminal justice and growing numbers of vulnerable people refused legal aid and unable to enforce their rights.
“Access to justice for all is a cornerstone of the rule of law and our values – the stakes have rarely been higher.”
Heledd Wyn, associate director at Gregg Latchams comments:
“With a lot of rhetoric about ‘getting Brexit done’, now that we have a majority Conservative government, it will be interesting to see what attention will be paid to more domestic policies such as taxation and social care. These issues affect individuals and their families on a daily basis, and it will be important that these are not overlooked in the new government. The very long overdue green paper on social care must be a priority for the new government and no doubt a cross party issue.”
