GOOD NEWS – TRANSFERABLE NIL RATE BAND – IT WORKS!
In October 2007 the Chancellor introduced the Transferable Nil Rate Band. This means that when a widow, widower or surviving civil partner dies, the tax free allowance on the second death can include the unused portion of the first spouse or civil partner’s nil rate band. This year, that would mean a tax-free allowance of up to £624,000 (instead of £312,000). This scheme is now working well. However it is important to make sure that your executors know exactly what documents and information are needed to make the claim on the second death - it is not automatic: a formal claim must be made within a time limit. For more information on how this works and what details are needed to make a claim...  |
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TAX PLANNING WILLS – SHOULD YOU KEEP THEM?
Since 9th October 2007 we no longer recommend making nil rate band
discretionary Trust Wills for tax planning purposes. However for
those couples (married or civil partners) who made tax planning Wills
before 9th October 2007, there are still benefits (other than tax
planning) in having these Trusts in your Wills. The Trust protects
the nil rate band (currently £312,000) of the first to die
so it will not be at risk from such things as long term care fees
for the second spouse or from a second marriage or financial loss
by the second spouse. The Trusts are a useful means of protecting
assets up to the value of the nil rate band and ensuring that in
time they will pass to your eventual beneficiaries - usually your
children/ grandchildren. However the disadvantage is that if you
keep the Trust in your Will after the first death, the transferable
nil rate band is not available on the second death. The decision
on whether or not to keep the Trusts in your Wills can be left until
the first death. It depends a great deal on your individual circumstances.
We will gladly help you make this decision either now or later. For
more information... |
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LONG TERM CARE FEES – PROTECT YOUR ASSETS
Inheritance Tax has been a concern for many years, but at least it is limited to 40% of the estate after taking off the nil rate band. Long Term Care fees have become more of a worry as they can take virtually the whole estate of the person in care and if that is the surviving spouse or civil partner this may leave very little for the eventual beneficiaries. We can advise you on how to protect up to half of your joint assets by using a Trust and also keeping the transferable nil rate band available for reducing inheritance tax. For more information... |
CAN WE HELP YOU?
We will be glad to help you with any queries you have about Wills, Inheritance Tax, Trusts or Asset Protection. Please send
us an email or you can phone us on 020 8891 6141. We look forward to hearing from you.
For newsletter subscribers, your initial enquiry is
free of charge. |
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