Estate Planning and Wills in Rochester

The threshold for Inheritance Tax (IHT) has risen in recent years to £325,000 for individuals and – together with 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 residence costs, even so, specifically within the South East, implies IHT continues to be a concern for many home owners. It really is for that reason sensible to take some time for you to think about ahead of time the prospective liability you could be leaving behind.

Ahead of you look to offset it, on the other hand, it’s crucial to establish what will accumulate as a potential liability. For many, the key contributor to their estate will probably be the value of their property and, even though this lies below the threshold, other elements can push an estate over the limit. As an example, despite the fact that persons normally speak of the benefits of ISA investing – which shelters investors from capital gains and earnings tax – ISAs usually are not sheltered from IHT.

The issue with IHT is just not only the reality it must be paid, but in addition that it becomes due fairly rapidly – frequently within six months . When your property and certain other volatile assets are involved, there is a provision that enables your beneficiaries to pay their liability via instalments while the home is sold. However, this means that, whilst waiting for that sale, other heirlooms may very well be compromised as, with no prudent preparing, some could need to be sold to meet the bills.

Nevertheless, there is action you’ll be able to take , specifically in case your liability is reasonably tiny. Handful of individuals realise that they have an annual exempted quantity that they will present to someone. At £3,000 per year, this could go some technique to reducing the overall estate. Gifts for weddings, from parents, grandparents and also good friends, are also exempt (topic to varying maximum amounts) and there are other valuable tools for instance loan trusts and discounted present schemes.

As the Government appears to close prospective tax loopholes it is always worth finding assistance on what can and can’t be carried out to ease possible IHT burdens. In the long run, it might assist your family preserve some of its most valued possessions, sentimental or otherwise.

Wills

It’s understandable that so many of us place off the task of creating a Will. It tends to make us think of our mortality and look at issues which we hope will under no circumstances occur. Nevertheless, with no a single, you could be shocked to discover how straightforward it is actually for the assets to be distributed in an undesirable way. The exact guidelines of distribution rely exactly where in the British Isles you live as some details differ involving Scotland, Ireland and England & Wales. Having said that, if you are not married, by way of 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 if you are married, there are numerous good reasons for producing 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 devoid of your say. You can also decide if ex-partners – or perhaps more importantly, ex-partner’s children – should be helped out. And, in case your estate is greater than £325,000 (£650,000 for married couples), a Will can assistance you plan to reduce your Inheritance Tax liabilities. In thinking like this, making a Will can actually become a positive, rather than negative experience. Considering such things ahead of time can assist your peace of mind and ensure that all your family and friends will likely be looked after in exactly the way you want them to be.

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