November 2011 - Castle Wills | Nottingham Will Writing Services

The results from a recent poll by the HSBC show that two thirds of parents questioned don’t have a Will in place.

As usual apathy is given as the reason by most who admit to “not getting around to it”. Around 25% state they intend to write one “when they are older”, with another 11% admitting that it had “never occurred to them”.

The single most important reason why parents need to write a Will is Guardianship.

By drafting a Will parents appoint Guardians of their choice who will look after their children, should it become necessary, until they reach the age of eighteen.

Many people don’t appreciate the implications of not having these arrangements in place, simply believing that the family will automatically take cialis over as guardians. They might well be horrified to learn that Social Services can step in and make alternative plans for their children.

As the report concludes “the fact that such large numbers of households are not planning ahead is leaving families exposed to unforeseen events.”

The Basics

Inheritance tax (IHT) is a tax charge based on the value of a person’s estate at the time of death. This can include the home, properties, shares and bank balances for example.
Certain transfers made out of a person’s estate during a person’s lifetime are also subject to IHT at the time the transfer is made. For example, if you gift any personal property into a discretionary trust.
Certain transfers of property can become chargeable to IHT if made within 7 years of death. These are called Potentially Exempt Transfers. For example, if you gift a sum of money or a property to a son or daughter.
There are a wide range of exemptions which valtrex apply both on death and to lifetime transfers, such as Business Property Relief and Annual Exemptions.
Assets held abroad by non-UK domiciled individuals are excluded property and as such are not subject to IHT.

Spouses and wills

Transfers between spouses or civil partners (the term “spouse” effectively means the same as “civil partner” now) are exempt from IHT on the proviso that both partners are UK domiciled.
If the transferee is non-UK domiciled only the first £55,000 is exempt.
Any nil rate band is transferable between spouses on the death of the first (subject to domicile).

Do you and your spouse have up to date wills?

Are your wills regularly updated?
Have your wills been updated since the rules changed to permit the transfer of unused spouse nil rate bands?
Your old will may provide and refer to nil rate discretionary trusts as these were very common in wills that were prepared just a few short years ago. Given the rule changes these may not be suitable now.

Action

Castle Wills | Nottingham Will Writing Services – Call us on 0115 721 0955

Monthly Archives: November 2011

Why should parents write a Will?

What are the Inheritance Tax implications of transferring property before death?

Castle Wills | Nottingham Will Writing Services | Will Writing Nottingham