As the credit crunch reduces access to conventional forms of funding via the banking system, there is growing evidence that some companies are delaying paying their invoices as an informal way of obtaining credit at the expense of their suppliers.

Mark Gardner insolvency and debt collection expert and partner within Latimer Hinks warns that some businesses within the region are avoiding paying supplier invoices for more than 100 days.

Mark said: “When it comes to chasing debt, some businesses seem to become terribly embarrassed by the issue and fail to challenge debtors appropriately and directly. Small and medium sized businesses need to learn to manage their customer contracts and debtors more effectively. Legally, there are penalties that companies can impose on late payers but, understandably, many are reluctant to do so for fear of losing goodwill and potential repeat business. Nevertheless, there are some steps businesses can take to ensure that they manage creditors and debt more effectively.”

Even before the credit crunch took hold last summer, a study by Leeds University’s Business School reported that the average small or medium sized business wrote off £14,000 in unpaid debts each year. After 15 years of relative economic stability, Mark argues that many businesses have simply become complacent and forgotten how to manage debt.

Mark said: “During the good times when there was ready access to credit, businesses did not follow up on debts as vigorously as they should have. The economic climate has shifted significantly and business practices need to change accordingly. Monitoring customer accounts to flag up trouble before it occurs should be a full-time role – not one that is undertaken on a slow Friday afternoon when someone in the office has a bit of free time.”

To help business owners learn to manage their debts more effectively, Latimer Hinks has published a ten-point plan which the firm is making freely available via its website. The plan includes advice such as requesting trade reference before accepting new business, making best use of electronic communication and how to decide if a debt is worth pursuing.

Mark added: “The market conditions are tough at the moment and only the brave will survive. A good customer is one that pays on time and a successful business is one with the ability to manage its cash flow. Our ten-point plan is a good place to start but if people need specific advice, they should contact a solicitor specialising in debt collection who can discuss all the options to develop a strategy for recovery of debts.”

The Latimer Hinks guide to managing business creditors is available via the resources page under fact sheets

Natalie Walker, solicitor in Darlington law firm Latimer Hinks, is urging people to seek a professional legal review of their last will and testament to avoid lengthy family feuds and conflict.

An appeal by Doctor Christine Gill against her parent’s will is currently being heard by Leeds High Court. When her mother died in 2006, Doctor Gill was shocked to learn that she had been excluded from both of her parent’s wills; their entire legacy being gifted to the RSPCA. The estate, valued at £2.4 million, includes a farm house near Northallerton and 270 acres of surrounding land.

Natalie said: “The Doctor Gill case is an extreme example but it does highlight how important it is to draw up a robust, legally binding will with the help of professional advice. People are entitled to leave their possessions to whomever they like and charity bequests have become increasingly popular over the last few years. However, it is important that people understand the implications of their decisions and make certain that their arrangements are clearly set down in a legally binding will to ensure that their wishes are carried out fully.”

Every year, there are many examples of people failing to make adequate arrangements within their wills. One such example is of someone using an off-the-shelf DIY will kit who, not fully understanding the implications, asked the main beneficiary to counter sign the document as a witness. As you cannot receive a gift from a will that you have signed as an official witness, this person was barred from the legacy and did not inherit.

Further problems can arise when wills are poorly written and therefore cause confusion as to what has been left and to whom. However, perhaps the only thing worse than leaving a poorly written or ‘void’ will is to die leaving no will at all. It is estimated that up to 60 percent of all Britons have not written a will and, unless they seek to rectify this, the laws of intestacy will be invoked upon their death.

Natalie said: “If a person is married and dies without a will in place, their property would, in the majority of cases, automatically transfer to the surviving partner unless the value of the property in the deceased person’s sole name was over the current Statutory legacy amount of £125,000. However, intestacy laws have not kept apace with social trends and an unmarried person would not be entitled to anything upon the death of their partner. The intestacy laws are an unreliable backstop to making a will and should not be looked upon as a reliable substitute.

Most of us have specific gifts we would like to make after our deaths, but unless a clear and valid will is prepared, there is no way of ensuring that our wishes will be carried out. The language and laws surrounding wills can confuse some people. If in doubt, you should always seek legal advice.”

Doctor Gill’s hearing has been adjourned until November.

Anne Elliott, a partner and specialist tax adviser at Darlington law firm Latimer Hinks, is advising people on the implications of new Inheritance Tax legislation – commonly referred to as ‘the transferable Nil Rate Band’

Every individual is entitled to gift assets up to the value of £312,000 tax free either within seven years of death or on death. Known as the ‘Nil Rate Band’ (NRB), assets to this value can be gifted tax free. Above the NRB, IHT is payable at 40%.

Affecting married couples and civil partners, the new legislation means that up to 100% of the first to die’s unused NRB will automatically transfer to the survivor for use on the second death - resulting in an increased combined NRB allowance for the survivor’s estate.

Prior to these changes, couples could only combine their NRB allowances in their wills by immediate gifts e.g. to children or by setting up a ‘Nil Rate Band Discretionary Trust’ – in the Will of the first to die his/her NRB is gifted to a discretionary trust for the family, including the surviving spouse/civil partner. The survivor can benefit from assets within the trust but those assets do not form part of the survivor’s estate.

Anne Elliott said: “For many years, we have used NRB discretionary trusts for effective IHT planning. Even though we now have the transferable NRB there are many other advantages and features of the NRB discretionary trust which ensure they remain a useful and prudent family and tax planning arrangement for couples.

For example, if a widowed partner was to go into a new relationship/remarry, the trust would potentially safeguard the NRB assets for the benefit of any children from the first marriage/partnership.  Furthermore, a trust can also protect property should the survivor require residential care in their old age.”

Anne added: “There are some important issues and protections offered by NRB discretionary trusts and, in light of the legislative changes, I would advise people to review their wills. It is good practice to periodically review your will (we recommend every 3-5 years) especially if there has been a change in family circumstances e.g. a birth, death, marriage, divorce.”

September is typically the second-busiest month of the year for divorce actions as vulnerable relationships crumble under the pressure of couples spending time together during the summer holidays. With the slow down in the economy and ever rising commodity prices hitting disposable incomes, the team at Latimer Hinks expect to receive an increase in divorce enquiries this year.

Judith Middleton, family law specialist and partner in Latimer Hinks said: “We normally witness a slow down in divorce cases in the lead in to the summer holidays. However, this year, that has just not happened and we remain as busy as ever. It seems that rising petrol, energy and food prices combined with a widespread shortage of credit are stretching couples to the limit. Sadly, many are separating as a result.”

Post-summer holiday blues are witnessed each year by divorce lawyers up and down the country. Recent research* has shown that almost half of British couples rowed with their partner while on holiday, more than one in 10 couples have actually split up while abroad and one per cent of married couples have applied for a divorce after falling out on holiday.

Furthermore, the start of the new Autumn school term can prompt some couples to separate - those who had previously decided to stay together for the sake of their children. All of this has led to one relationship psychologist to identify August 30th as Britain’s most argumentative day.

Judith added: “Post-holiday depression, a disappointing holiday, financial strain and lack of sunshine all contribute to the high probability of a row.  Couples who have been cooped up on holiday together could start regarding each other with growing contempt and feel the need for a bit of space.  This often manifests itself in bickering and needless arguments.

“Couples find it easier to paper over the cracks in their relationship when levels of disposable income are high. The opposite is true when couples need to tighten their belts. Financial worries are a major source of conflict and this, combined with an unhappy summer holiday, can lead many couples to separation and divorce. Regardless of the time of year, the advice remains the same: seek professional help to unravel complicated financial and emotional issues and, if at all possible, reach an amicable settlement.”

The Multiple Sclerosis Therapy Centre in Middlesbrough was named Charity of the Year at the 2007 ceremony.

Mike Horsley, Development Manger at The Multiple Sclerosis Therapy Centre, said: “I was thrilled to accept the award on behalf of The Multiple Sclerosis Therapy Centre in Middlesbrough. To be recognised meant the world to the staff and the volunteers at the centre who work tirelessly every day to help those suffering from MS and their carers. 

“Winning the award can also bring great financial benefits to the charity and we estimate that the Multiple Sclerosis Centre has received donations in the region of £10,000 as a consequence of winning the award.   It takes a lot of money to keep the centre running and this funding and recognition is invaluable in enabling us to continue helping those with MS.

“I would definitely encourage other organisations to nominate either their charity or individual volunteers or fund-raisers.   There are so many unsung heroes in our sector and it is fantastic that the achievements of some are highlighted in this way. ”

The awards, promoted and sponsored by Hartlepool accountants Howarth Clark Whitehill and Darlington law firm Latimer Hinks, aim to celebrate the individual volunteers, fundraisers and businesses who give their time and energy to local charities as well as the charities themselves. Nominees must be within the TS, DL, DH, SR and YO postcode regions.

Following the success of last year’s inaugural event, the 2008 ceremony will be held at Middlesbrough Football Club on 2nd October.

Partner at Latimer Hinks, Anne Elliott said:  “We are proud to be a part of the awards for the second year, and to support and acknowledge the work of the region’s vibrant third sector.

“Local charity work often involves operating under severe financial constraints and with little recognition.  Being nominated for an award can help to increase the profile of a charity, large or small.  We would encourage as many people and organisations as possible to consider making an application for these awards – as the old saying goes, you’ve got to be in it to win it!”

Peter Olsen, partner at Horwath Clark Whitehill said:  “We were very pleased with the success of the last year’s awards, and aim to continue to celebrate the fantastic work carried out by charity organisations and individuals across the Tees Valley, South Durham and North Yorkshire areas.

“There are an amazing number of people in the region involved in the charity sector, from fundraisers and charity workers through to volunteers and business supporters and it is for these people the awards are intended. We hope that people across the region will nominate both their favourite charity and the inspiring people who work selflessly behind the scenes.”

www.durhamteesvallycharityawards.co.uk

Darlington law firm, Latimer Hinks, has shared a charitable donation of £10,000 between three local charities. The money was raised by clients and associates at the fifth Latimer Hinks Summer Ball.

The charities – the County Durham Foundation, TFM and Magic 1170’s Cash for Kids, and the Great North Air Ambulance – each received £3,333.33. These latest donations bring the total amount of charitable funds raised by the firm’s biennial summer balls to nearly £35,000.

Anne Elliott, partner at Latimer Hinks said: “For more than a century, Latimer Hinks has made a valuable contribution to the Darlington community. I feel incredibly humbled by the generosity of the firm’s clients and associates. The Latimer Hinks Summer Ball continues to make great contributions to north east charities - all of whom undertake essential work to support people throughout our region.”

The fifth Summer Ball was held at Wynyard Hall in May. The black-tie event included a four course meal, a charitable auction and a raffle prize draw. Helping to ensure donations reached an event record of £10,000, HSBC bank generously contributed to the fund – mirroring donations £ for £ for the first £1000.

Anne added: “Everyone involved in our Summer Ball should be rightly proud of this latest achievement.”

It may not be the most romantic aspect of planning a wedding but prenuptial agreements could become an important part of preparations for the big day in the future, according to Judith Middleton, partner at Darlington law firm Latimer Hinks.

‘Pre-nups’ are not, at the moment, binding in the UK although judges can take them into account during divorce proceedings. However, the Law Commission is to consider plans to bring the legal system in England and Wales in line with other countries. It will look at whether pre-nups should be upheld by the courts and under what circumstances.
The commission hopes to produce a draft Bill on the issue by 2012. It will also consider whether agreements made after a marriage should be enforced in the courts.
Divorce law has previously resisted allowing prenuptial contracts, which are popular in the United States, particularly among celebrities and the super-rich. But senior judges and lawyers believe that the system should be modernised and they should receive legal recognition.

Judith said: “I welcome the plans by the Law Commission to look at pre-nuptial contracts and their validity in divorce settlements.
“A prenuptial agreement can help clarify issues before they have a chance to turn into a source of dissension. At the very least it can help couples to talk through how to deal with a situation in a way that is fair to both parties.
“At present pre-nuptial agreements are persuasive in the courts but not strictly legally binding. The Law Commission will examine in what circumstances courts should uphold the increasingly popular contracts with the aim of drawing up a draft parliamentary Bill by 2012.
“Perhaps we will see less acrimonious splits, such as the recent McCartney Mills court case, and a trend towards a more amicable alternative to bitter divorce battles and that can only be good for everyone involved.”

Rosanne Green, solicitor at Darlington law firm Latimer Hinks, has been selected as a member of the Agricultural Law Association:The Next Generation (ALATNG) regional committee.

ALA was founded in 1975 to provide a forum for professionals serving agriculture – lawyers, surveyors, accountants, bankers, farm business consultants and others – to support each other in their career progression. The membership of more than 1,100 includes some of the leading practitioners in rural affairs in the UK and Europe.

ALA:The Next Generation caters for younger professionals by arranging mixed technical and social events which allows members of all professions to meet each other.

Rosanne Green joined Latimer Hinks as a trainee in September 2004. Rosanne accepted long-term employment with Latimer Hinks after qualifying as an Agriculture and Rural Property Solicitor, also dealing with Wills, Trusts and Probate, all of which are important specialisms within the Firm.

Rosanne said: “This is an excellent opportunity to meet other young professionals who work within the rural sector in various capacities. We have the opportunity to network and socialise but also to offer invaluable support and exchange views and ideas with each other.

“I am pleased to be a representative on the committee and look forward to working with my peers in agriculture to take forward this important organisation.”

The second County Durham and Tees Valley Charity Awards, promoted and sponsored by Hartlepool accountants Howarth Clark Whitehill and Darlington law firm Latimer Hinks, aim to celebrate the individual volunteers, fundraisers and businesses who give their time, money and energy to local charities as well as the charities themselves.

Following the success of the inaugural awards in 2007, this year’s ceremony will be held at Middlesbrough Football Club on 2nd October.

The new ‘Business Supporter of the Year’ category is designed to give recognition to those businesses that have supported charity work in the County Durham & Tees Valley area. The businesses must be within the TS, DL, DH, SR and YO postcode regions.

Heather O’Driscoll, charity audit partner at Horwath Clark Whitehill said: “Last year’s event was a resounding success and we have decided to expand the awards to recognise the region’s businesses, many of whom do exceptional work in supporting the charity sector.”

Latimer Hinks Partner, Anne Elliott said: “Latimer Hinks is proud of its links with the community and our support for local charities. Many organisations quietly do a great deal of good work and we are asking charities to nominate their own supporters and ensure they receive the credit they richly deserve.”

A limited number of sponsorship opportunities are available for the awards. Details by contacting Caroline Walker on caroline.walker@recognitionpr.co.uk

Fred Burton is “an institution” – defined in Webster’s Dictionary as “someone firmly associated with a place” – nothing could be more true when considering Fred’s relationship with and place within Latimer Hinks!

“Googling” the name “Fred Burton” one discovers that a Fred Burton is a ‘counter-terrorism agent’ (could this be our Fred Burton, as during the long time he was part of the Litigation Department he was known as a “Litigation Rottweiler”?); another Fred Burton is a well-known author (could this be our Fred Burton, as he penned many a statement, many a letter and perhaps has commenced his memoirs?); another Fred Burton is an artist (well, our Fred Burton was an “artiste” – a valued member of the Kay Players, and no mean pianist); and yet another Fred Burton is an expert on Blue Iguanas (our Fred Burton is an expert on cats!!!).

Fred joined the firm of J.F. Latimer & Hinks in 1936 – yes, 72 years ago, and long before any of the rest of us were born! In fact, he didn’t actually start his law career with J.F. Latimer & Hinks, but with Steavensons, Plant and Park following his leaving school at age 14!!

As was the way in those days, his first appointment was as an office boy, and as part of his duties he had to deliver local letters: in doing this he became friendly with another office boy who worked at J.F. Latimer and Hinks, and he told Fred that he was leaving and if Fred wanted his job he should contact the then managing clerk, Mr. C.N. Walton (the father of Stanley N. Walton who in turn and later practised in partnership with John Hardy as Stanley N. Walton & Hardy). Believing that J.F. Latimer & Hinks was the firm to work for Fred applied to Mr. Walton, who agreed to take him on if Steavensons, Plant and Park agreed to release him, which they did.

Fred’s future career and reputation may well have made them regret that decision, but Steavensons’ loss was Latimers’ gain. The move was certainly advantageous as Fred had an immediate pay rise from 5 shillings a week to 12 shillings and 6 pence!!

Three years on, in 1937, when Fred was 16 years of age, he was told by a colleague named Arthur Snowdon that he, Arthur, was going to leave, and that Fred would be well advised to learn shorthand and typing. This he did, by taking private lessons, and as a result by the time he was 18 years of age he was Charles Hinks’ secretary. Fred would be the first to admit Charles Hinks’ reputation and skills, and he learned a lot from him. In future years when Fred had secretaries of his own they found him very efficient, easy to work for, fantastically organized, his files in perfect order – a legacy from the training he had as a secretary.

World War II then intervened, and Fred enlisted for pilot training. Due to a shortage of instructors that training did not happen, and he agreed to transfer to radar training – again through a shortage of instructors he transferred to general duties. Taking exams at Dishforth he was posted to the Middle East, to Egypt. It was there, on leave in Cairo, that he bumped into “Sticks”Gibling whom he had met on the boat taking them out to their posting. Before the war “Sticks” had been a drummer in the BBC Variety Orchestra, and was aware that Fred played the piano. Strings were pulled, and Fred was posted to Cairo to entertain the troops! – years later he entertained the “Latimers Troops” at many an office party.

Fred found that his Commanding Officer was none other than Walter Hammond – the famous cricketer. Cricket was another of Fred’s accomplishments – he played for Darlington and such was his reputation that he was known in cricketing circles as “the Mighty Atom”.

After the War, Fred returned to J.F. Latimer & Hinks and became a very valued member of the Litigation Department – who can forget the statuette always in place on his desk entitled “Sue the Bastards”!!! That statuette is still within the office somewhere. As already mentioned, Fred was a gem to work for, and over the years he was, amongst others served by Christine Howe (the daughter of another Latimer Hinks legend, Ronnie Howe), Wendy Falla, and Maureen Grainger (still on the staff). Maureen remembers that Fred frequently asked for “a nice cup of tea – it is much more refreshing”. Fred was assisted over the years in the “day to day” work by a series of assistants, most of whom moved on to other firms having had an excellent grounding from a good man.

There are many memories over the years – the time when Fred became 50 years of age and was presented with champagne by the then senior partner, Tony Little (who insisted on calling Fred “Freddie”); there was the time when a cat became trapped at the rear of the building and became quite wild – it was tamed by Fred, himself a great cat-lover, rescued and taken home; there were the times when clients and firms rang up and asked to speak “to the man who signs his letters with a figure 8” – the way Fred signed his initials appeared as such; all the office parties where he entertained and orchestrated the “singalongs”.

Fred continued working in litigation long after the time when he could have retired – like many of his contemporaries in the preceding years – Charles Hinks, Max Singleton, Mary Coward, Ronnie Howe – Latimers was a second home and a way of life. Fortunately for the firm, as Fred became older, he agreed to continue to come into the office and for many years has maintained, catalogued, and supervised the not inconsiderable library of reference books.

Priestgate will never be the same again! Fred’s presence in the office has been a “constant” and he will be greatly missed – not only for keeping us on our toes in his search for books, but for his character, his humour, and his personality.

All Fred’s colleagues, past and present, and especially the partners of the firm, wish him well, and happy times with Dorothy and the family. May the sun always shine for them – and Fred, if there is a cloud in the sky any day, call in and see us, check up on us and see whether things are being done correctly!