Making gifts of assets: Law Society update

The Law Society have updated their practice note for solicitors advising clients on the transfer of assets.

As a way of planning for future care, clients may seek advice about transferring their investments or property to family members or friends.

If an individual lacks property to sell, the funding of their care cannot be provided for through the sale of their home and instead, qualify for state support. Therefore, in order to save their property and possessions, people look towards gifting as a viable solution.

However, it is essential that prior to disposing of an asset, the specific criteria surrounding gifting is acknowledged and adhered to. In cases where someone does not possess an item that would have otherwise been considered during a financial assessment, the issue of deliberate deprivation may arise – potentially resulting in serious consequences.

If a solicitor is found to have assisted a client in the deliberate deprivation, they may also be implicated.

It is, therefore, essential that when clients are being advised on the gifting of assets, they are made aware of the risks, benefits and the exact responsibility of the legal professional within the process.

At a time when care costs are increasing and consumers are increasingly investigating ways to save, there has arguably never been a more relevant time for care to be taken when advising on transferring assets.

The practice note is designed specifically for the benefit of legal professionals providing clarity and detail upon what they should consider.

The recent amendments include:

• Removal of outdated information
• Changes to certain wording
• The tax considerations section being made more concise

The making gifts of assets practice note can be accessed here.