“New inheritance tax limit: thousands will miss out unless they make this change!”

In September 14, 2015
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IHT

 

“Thousands of families need to review their wills if they want to benefit from the Government’s new inheritance tax allowance”

I read this interesting headline in an article appearing in the Telegraph the other day, which no doubt will cause panic and concern for many readers expecting to benefit from the newly announced property nil rate band allowance for inheritance tax purposes.
The article does a good job of explaining that yes, all estate planning should be reviewed in light of the new changes coming into effect in 2017, but like many media publications, there is not sufficient depth of knowledge or information being imparted, which could lead to some confusion.

My biggest problem is the article in question paints a picture that Discretionary Trusts are now a bad thing, and any Will containing a Discretionary Trust, should be re-written to take this out, in favour of claiming the new allowance.
The reality is that there are still a whole host of reasons why you might wish to have a Discretionary Trust within your Estate Planning, but your Will and Estate Planning should be correctly drawn up to take advantage of the new tax allowance and still allow the majority of your estate to be protected against divorce, care fees, bankruptcy via aTrusts Discretionary Trust.

The problem for most people occurs when they spend more on their annual holiday, than they do their Wills and Estate Planning!!! Cheap Wills and Estate Planning is always a false economy, at the time you draw up your Wills, they will be accurate, but as soon as the Government or HMRC change any allowances, laws or legislation, your planning will inevitably be out of date and incorrect.

The truth is that spending a bit more on your Estate Planning up front can save you massively in the long run. If your planning is done comprehensively and properly in the first place, it should be robust enough to ensure your wishes are carried out, but flexible enough to change and adapt over time to your own changing wishes or changes in government, legislation and the law.

If you had paid a little bit more and had properly drafted Wills & Estate Planning, you would not be faced with having to re-do all of your planning again, in light of this new legislation. Our clients thankfully have the right planning in place, so after HMRC have finished their consultation on these new changes, we will most likely just have to make a small amendment to everyone’s Estate Planning, which will save our clients hundreds and thousands of pounds in costs by not needing to re-write their Wills & Estate Planning.

The final message from me is…don’t take advice from a newspaper article! True Estate Planning is much more than just a Will; these new changes are complex and have far reaching implications, so whatever you do, take professional advice!  Estate Planning
Source: www.telegraph.co.uk/finance/tax/New-inheritance-tax-limit.html

 

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Jasmine has been a qualified Financial Planner since 2008. She has also been a member of the Society of Will Writers since 2012. She is passionate about helping Clients build their wealth and achieve the financial lifestyle they desire. Her areas of expertise are that of Savings, Investments, Pensions and Retirement Planning.

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