Why Make A Will?
Because it enables you to state precisely who your beneficiaries are and what they will receive from your estate; to give clear instructions about funeral arrangements; to minimise tax bills and to appoint the people who will administer your estate after your death – your executors. The intestacy rules do not apply as you would expect and not all of your estate would necessarily pass to your spouse.
Inheritance tax (IHT) threshold
The IHT nil-rate band was increased to £312,000 with effect from 6 April 2008. Transfers of property between spouses or civil partners are generally exempt from IHT. This means that if an individual dies and leaves some or all of their property to their spouse or civil partner, they may not have fully used their nil-rate band. The new rules which take effect where the survivor dies on or after 9 October 2007 will allow any nil-rate band unused on the first death to be used when the surviving spouse or civil partner dies. The amount of the nil-rate band available for transfer will be based on the proportion of the nil-rate band which was unused when the first spouse or civil partner died. For example, on the first death none of the original nil-rate band was used because the whole of the estate was left to the surviving spouse. If the nil-rate band is £350,000 when the surviving spouse dies, it would be increased by 100% to £700,000.
Inheritance tax (IHT) planning
As a result of the changes from 9 October 2007, there is no longer the need to undertake specific IHT planning by those whose joint estate does not exceed £624,000 for 2008/09 (£700,000 by 2010/11). Planning remains advisable for those whose assets exceed the nil-rate band and consequently IHT remains payable.
Can Thomas May & Co Help?
Yes.We will look at your current Wills, discuss your estate and calculate your potential Inheritance Tax liability. We will discuss your wishes regarding your estate and explain the various tax planning strategies and the use of Trusts and Will Planning to minimise all forms of taxation. Our discussions and recommendations will be summarised in an Inheritance Tax Planning Report.
If you wish to implement our recommendations we can oversee the set up of Trusts and can draw up your Will. Our partners can also be appointed as executors.
At the time of death, our Trust and Estate Department will deal with obtaining probate, administering the estate and generally provide assistance to the family.
Nearly two in three people who die in Britain do so “intestate” – that is, without having made a Will. Many may have thought they had more time to sort out their affairs than, as it turned out, they actually did have.