Wills & IHT Planning

First and foremost a properly drafted Will ensures that your assets pass to your intended beneficiaries on your death. Otherwise, “intestacy” rules apply, and can have unexpected consequences.

A Will is also a basic mechanism for efficient Inheritance Tax (IHT) planning. For married couples in particular (and Civil Partners after 5 December 2005) it can ensure use of two IHT “nil rate bands”. This can save up to £110,000* for a family with assets over £550,000* (*2005-06 tax year)

By including a Trust in your Will, co-ordinated with trusts of your pension and life policies, assets can be distributed flexibly and to the best IHT advantage. A Trust will also provide a means of protecting family assets in case of unstable marriages / divorce, financial insolvency, or mental or physical disabilities.

For those with property abroad, there can be a need for a separate Will in each country. “Forced heirship” and local tax rules apply in many European countries, and can give rise to awkward conflicts with UK planning which need careful co-ordination to resolve.

The difficulty is not understanding that Wills and other succession planning arrangements should be put in place or reviewed, but finding the time!

For a free initial consultation contact Helen Webster.