Tuesday, November 27th, 2007
Chancellor Darling’s pre-budget statement on inheritance tax may have spelled the end of the nil rate band discretionary trusts in wills but did it spell the end of all inheritance tax planning? Inevitably not.
Families whose total asets are less than or around the £600,000 mark can now concentrate of getting their Wills right from a family perpective, without focusing on inheritance tax - and unless you are single and penniless you need a Will. Couples with young children, co-habiting couples, individuals with families or friends with special needs, owners of property abroad need Wills as indeed does anyone who has some assets and is unhappy about leaving it the the 1925 Administration of Estates Act to decide who gets what. Under those rules if you die without a will leaving a spouse or civil partner and children then the surviving spouse or civil partner will only receive £125,000 outright.
For those whose total family assets exceed £1million, and with local property values, pension and death in service benefits a surprising number of people are included then you need a Will and you need to look at inheritance tax. An estate of £1.25 million even after 2 tax free allowances will still pay £300,000 of tax to the Revenue. If you are comfortable with that then fine. If not you need to talk to Ed Walter to see what can be done. Between now and Christmas he will provide you with a free diagnostic interview of up to 30 mins without obligation.
© Copyright 2009 Burt Brill & Cardens Solicitors