Inheritance Tax - Trusts and Wills
Wills
We believe that any Estate Planning strategy designed to save Inheritance Tax (IHT) must begin with having a well worded Will drawn up. Ashwood Law have connections with many established Solicitor practices that may be able to help.
So often we come across people who have not taken the simple step to have a Will written which may prove difficult for the loved ones left behind.
A Will governs how a person's estate is distributed on death. If no valid Will exists the laws of intestacy apply. This could mean the deceased's unwritten wishes are not taken into account and in any event tax efficiency is likely to have been lost.
The deceased person's estate can be distributed exactly as they intended where a Will is in place – without the squabbles!
Missing a generation may also be an effective strategy! Why increase your children's estate and their own Inheritance Tax liabilities if they may already be wealthy enough to have an Inheritance Tax issue themselves?
Wills need to be reviewed and updated on a regular basis. Especially if there have been any changes in legislation or your own personal circumstances.
In practice it is advisable to make new Wills on marriage or divorce. Particular thought needs to be given if the circumstances of any of your chosen beneficiaries changes too. Do you still want your ex- son/daughter in law benefiting from your estate?
In his October 2007 Pre- Budget Report (PBR) Alistair Darling made changes to the Inheritance Tax rules which may make it necessary to have your planning reviewed.
These changes could affect the way couples need to plan and we recommend that clients, including Widows and Widowers, seek our advice to help to make sure they make the most of allowances available. Contact Ashwood Law to find out more.
Trusts
A Trust is the legal way a person can protect their assets and ensure that inheritance tax liability is minimised for their loved ones. They can also be used to protect an estate or your home from care home fees using a protective property trust. A discretionary trust can also provide for someone who cannot manage their own financial affairs. These are examples, other types of trusts may be more appropriate for your needs and circumstances.
To find out more about Wills and Trusts, contact Ashwood Law and we will be able to put you in contact with solicitor.