Make aWill If you die without a Will, the intestacy provisions will apply and may result in your estate being distributed in a way you would not have chosen. Keep your Will up to date to reflect changes in the family situation. In particular, Wills need to be reviewed and amended as necessary on marriage or on divorce. The precise position depends on whether English or Scots law applies. Use life assurance Life assurance arrangements can be used as a means of removing value from an estate and also as a method of funding IHT liabilities. A policy can be arranged to cover IHT due on death. It is particularly useful in providing funds to meet an IHT liability where the assets are not easily realised, eg family company shares.
Tax Planning Checklist
value of the additional nil rate band, are passed on death to direct descendants. There is also a tapered withdrawal of the additional nil rate band for estates with a net value (after deducting any liabilities but before reliefs and exemptions) of more than £2 million. The withdrawal rate is £1 for every £2 over this threshold. Charitable giving Legacies to registered charities will reduce the value of the chargeable estate and thus save 40% IHT. In addition the legacies may result in a lower IHT liability on the estate which remains chargeable. A reduced rate of IHT applies where 10% or more of a deceased’s net estate (after deducting IHT exemptions, reliefs and the nil rate band) is left to charity. In those cases the 40% rate will be reduced to 36%.
Do you have aWill?
Where is it kept - do you and your family know?
Is it up to date?
Does your Will make full use of IHT exemptions and reliefs - in particular does it take account of the newmain residence nil rate band?
Do you have adequate life assurance?
This guide is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining fromaction as a result of the material contained in this guide can be accepted by the authors or the firm.
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Preserving the Inheritance
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