Write a Will

At this stage we should point out how important it is to make a will as this will dictate what happens to the estate. For an individual who dies testate this is where they have a valid will which sets our how their estate will be distributed and who it should be passed on to. Where an individual dies intestate then they do not have a valid will and the estate is then divided according to the laws of intestacy. There are diffent Laws of intestacy for England, Wales and Northern Irelant vs. Scotland. In a worse case situation with no surviving relatives exist then the Crown (the Government acting for the State) takes all the remaining assets of the estate.

It is therefore important to make a will so intentions are cleary set out and the estate is distributed in accordance with wishes.

We recommend that you seek legal advice and do not offer a Will writing service.

IHT is one of the most unpopular taxes yet it is not payable by many people and is often considered an optional tax as it is normally possible to plan for the tax well in advance and either avoid it altogether or take out insurance to pay the tax for your dependents.

IHT is payable if the total value of your estate (all the assets less all the liabilities) exceeds the IHT Allowance, currently £325,000. Tax is paid at 40% (ouch!) on the value above the IHT allowance.

One important point to note here: if you leave everything to your spouse there is no IHT to pay on your death. If you do not use the IHT allowance then this allowance is normally available to the dependents to use on the second death although it is important to keep clear evidence.

Inheritance Tax is a tax on the estate (the property, money and possessions) of someone who’s died.

You can pass a home to your husband, wife or civil partner when you die. There’s no Inheritance Tax to pay if you do this.

If you leave the home to another person in your will, it counts towards the value of the estate.

If you leave your home to your children (including adopted, foster or stepchildren) or grandchildren, your tax-free threshold will increase to £425,000.

 TAX TREATMENT IS BASED ON INDIVIDUAL CIRCUMSTANCES AND MAY BE SUBJECT TO CHANGE IN THE FUTURE.

INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM TAXATION, ARE SUBJECT TO CHANGE.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE WILL WRITING AND INHERITANCE TAX PLANNING.

Also See:

 Inheritance Tax Tax Planning

 Charitable Gifts Potentially Exempt Transfers

Financial Advice... pure and simple

Richardson & Associates Independent Financial & Mortgage Services Ltd provides financial advice and planning, in plain English, to people who want to ensure they make the right financial decisions at the right times and at the right cost. It's simple!

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