No one wants to pay tax unnecessarily to the Chancellor but it's surprising how many people end up doing it. Changes to IHT rules in October 2007 affect married couples and those in civil partnerships but for everyone else the rules remain unchanged.
One of the biggest benefits of doing some comprehensive Estate Planning is that you can ensure that you don't pay a penny more in tax than you have to. This is because your Will can be drafted to include a provision to set up Trusts that will enable you to save Inheritance Tax (IHT).
These types of products are known as IOU Discretionary Will Trusts but we like to call ours the Generation Plan and Asset Protection Plan! Despite recent IHT rule changes, there are still a number of reasons why a married couple might consider provision for this in their Wills. We are one of the main specialists in the UK and (given our ability to act as a professional Trustee) are experienced in dealing with the implementation and administration of the Trust.
In addition to the Tax savings an IOU DWT can:
1. Help with Longer Term Tax Planning by preventing assets falling into their beneficiaries' Estates on 2nd death and in doing so minimise the beneficiaries future taxable Estate.
2. Protect against future remarriage by a surviving spouse. Should the surviving spouse remarry then the intended beneficiaries, usually the children, could end up being disinherited.
3. Protect against future Divorce. In the case of a surviving spouse remarrying then divorcing some years later, having funds in Trust would ensure that they are kept out of a divorce settlement.
4. Provide a level of protection against hostile creditors in the future. Sale of a property, which forms part of a Trust and is not wholly owned by any 1 individual, cannot be forced in some instances.
Why not speak with a Just Wills Consultant to find the best solution to fit your individual circumstance?
01635 31540
