Waveney McKenna

A will provides a formal document as to how you would like your estate to be administered following death. It appoints executors who will act on your behalf and confirms your wishes in areas such as legal guardians for children, any specific legacies, whether assets are to be held in trust and if so who should benefit and when as well as naming those who should benefit immediately, normally as spouse.

It is essential to ensure that your wills are up to date; if no valid will is in place then the estate will be divided in accordance with intestacy rules.

It is important to consider who you are gifting your estate too and the inheritance tax consequences as well as implications relating to long term care provision

Inheritance Tax - How much will your Estate have to pay and what legacy will you leave your loved ones?

The current rate of tax on an estate is 40% on the value above the nil rate band in the year of death. The nil rate band is currently £325,000 and tends to increase each year.

For civil partners and married couples the nil rate band of the first partner to die can be carried forward to be used by the surviving partner, thereby effectively doubling the nil rate band to be used on the death of the last surviving partner.

It is important to consider the structure of your existing investments, any joint property including bank accounts and residential property will automatically belong to the surviving partner and therefore if you wish to make gifts via your will on first death then some assets may be more appropriately held in individual names.

For mroe information on Estate Planning and Inheritance Tax please Contact Us.