Estate Planning and Wills in Ely

The threshold for Inheritance Tax (IHT) has risen in current years to £325,000 for individuals and – using the choice now to transfer any unused threshold to a spouse or civil partner – a total of £650,000 for legally joined couples (for the tax year 2012/13) . The relative amount of property prices, nonetheless, especially within the South East, implies IHT is still a concern for many property owners. It is consequently sensible to take some time to look at in advance the potential liability you might be leaving behind.

Before you look to offset it, even so, it’s crucial to establish what will accumulate as a prospective liability. For most, the key contributor to their estate will likely be the value of their household and, even though this lies beneath the threshold, other elements can push an estate more than the limit. As an example, though people typically talk of your benefits of ISA investing – which shelters investors from capital gains and income tax – ISAs will not be sheltered from IHT.

The problem with IHT is just not only the reality it must be paid, but additionally that it becomes due relatively speedily – frequently within six months . When your house and certain other volatile assets are involved, there is a provision that allows your beneficiaries to spend their liability through instalments while the home is sold. Nevertheless, this implies that, while waiting for that sale, other heirlooms may very well be compromised as, without having prudent preparing, some may need to be sold to meet the bills.

Nonetheless, there is action you are able to take , especially if your liability is fairly tiny. Few persons realise that they have an annual exempted amount that they will present to someone. At £3,000 per year, this could go some technique to decreasing the overall estate. Gifts for weddings, from parents, grandparents and in some cases good friends, are also exempt (topic to varying maximum amounts) and you will find other valuable tools which include loan trusts and discounted present schemes.

As the Government appears to close potential tax loopholes it truly is generally worth obtaining advice on what can and cannot be carried out to ease potential IHT burdens. In the long run, it might aid your family preserve a few of its most valued possessions, sentimental or otherwise.

Wills

It’s understandable that a great number of of us place off the activity of making a Will. It tends to make us consider our mortality and take into account things which we hope will never take place. Having said that, without one, you might be shocked to find out how straightforward it really is for your assets to become distributed in an undesirable way. The precise guidelines of distribution depend exactly where in the British Isles you live as some facts differ involving Scotland, Ireland and England & Wales. Nevertheless, if you are not married, for example, the law is united in saying your partner may get nothing. With no a marriage certificate, your children and parents will benefit instead.

Even though you are married, there are actually numerous good reasons for generating a Will. First and foremost, it allows you to take positive decisions more than who gets what – including close friends, friends’ children, charities and local societies who are entitled to nothing without having your say. It is possible to also decide if ex-partners – or perhaps more importantly, ex-partner’s children – should be helped out. And, if your estate is greater than £325,000 (£650,000 for married couples), a Will can help you plan to reduce your Inheritance Tax liabilities. In thinking like this, creating a Will can actually become a positive, rather than negative experience. Considering such factors ahead of time can enable your peace of mind and ensure that all your loved ones and friends is going to be looked after in exactly the way you want them to be.

To discuss your wills and estate planning requirements
call us today on 01621 876030.