Business Profile
Emily Payne has joined Dickins Hopgood Chidley LLP, specialising in all aspects of estate planning, including wills, trusts, powers of attorney and estate administration.
With the end of the tax year approaching, thoughts turn to putting financial affairs in order, and making or reviewing your will should have a place on your priority list.
In October 2007, the law changed to allow married couples or those in a civil partnership to benefit from each other’s inheritance tax allowance on death. Before late 2007, chances are that your solicitor would have recommended a “Discretionary Trust” be written into your will, so that both allowances would be used. Quite rightly so at the time, but this is no longer needed, and does make administering your estate more complicated than it should be.
A much simpler will would be where everything is left to your husband or wife, and then to your children or other relatives on the second death. This is more straightforward for your executors and no less tax-efficient.
Many people assume this is how your estate is left if you do not leave a will, but the reality can be different. Up to £250,000 would go to your husband or wife, but anything above this (including the value of your house) would be placed in a trust with half going to your children at the age of 18, and half being kept for your husband or wife’s lifetime so that he or she would collect the income. This could easily give rise to an Inheritance Tax liability, giving more to the tax man than would have been paid if a simple will were in place.
For more information contact Emily Payne on (01488) 683555 or by e-mail: epayne@dhc-solicitors.co.uk
The team at Dickins Hopgood Chidley LLP based in Hungerford provides friendly and straightforward legal advice covering a range of individual and business needs. Contact any member of the team on (01488) 683555.
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