estate planning
Avoid Inheritance Tax using Inheritance Tax Saving Wills
Just a few short years ago Inheritance Tax was considered a tax payable only by the very rich. You might be surprised to know that the 2005/06 tax year generated £3.9 billion of Inheritance Tax for the Chancellor and by far and away the largest part of this will come from ordinary people who just didn't think it would affect them. You may also be surprised to know that by taking a little trouble planning for inheritance tax, this tax can be avoided entirely by many. Inheritance tax is effectively a voluntary tax that can seriously affect the value of any estate you leave. The last 10 years have seen rising house values overtake Inheritance Tax allowances and an increasingly large percentage of the population are now unwittingly liable for Inheritance Tax. In addition a growing number of people simply do not realise the extent of their estate and consistently underestimate their net worth.
Using "Inheritance Tax saving Wills" it's possible to fully utilise available Inheritance Tax allowances so that this voluntary tax is only paid on estates in excess of £570,000 (Tax year 2006/07). Wills that include Nil Rate Band Discretionary Trusts can save up to £114,000 (£120,000 from 6 April 2007)!
Protecting your property
For many the family home is the major asset and they generally want to make sure that the whole of the value of the property is passed on to their loved ones. Sadly there are two major threats and either could significantly reduce the value of your estate unnecessarily. Firstly, local authorities can access the value of your home to pay care home fees should either partner need this care. 1 in 4 men and 1 in 3 women spend their last years in care so the likelihood is you will be affected. Residential care facilities currently cost in the region of £33,000 per year and it is very easy to see how charges at this level quickly deplete an estate.
Secondly, a widow or widower re-marries and then dies, leaving the new spouse to inherit. This will effectively disinherit any children from the original marriage.
With advice and planning you can avoid these potential pitfalls and ensure your children and loved ones inherit what is rightfully theirs. All this but without losing any control over all your assets until both partners are gone.
A Protective Property Trust Will does precisely what it says. It helps you to protect your property. A Trust is set up so each spouse or partner can determine where their share of any property is distributed on second death. These Wills are suitable for mitigating long-term care costs, to avoid the death and remarriage scenario and for newly married couples with children from former relationships.
Get a quote
Please Note, by submitting the form you are requesting telephone contact from an adviser.
