The use of Wills and Trusts can be particularly effective in mitigating inheritance tax liabilities, but is also incredibly important if you have a spouse, children or other dependents. LIFT-Tax works with some of the UK’s leading lawyers and can help our clients get local professional advice that is vital when writing a will. We can also work with the lawyer to ensure that your Inheritance Tax (IHT) liability is mitigated as far as possible.
Trust and Will planning can be highly complex depending on your circumstnaces, and advice should be sought. Please contact us to discuss this area with one of our advisers.
Why you should write a Will
In brief, in the case of death without a valid will, who inherits and deals with the winding up of your estate is largely out of your control, and may fall to the Courts. If you have no relatives within a prescribed degree survive you, the Crown will inherit and wind up your estate, which is something that most people would wish to avoid.
Other problems can arise if you do not leave a valid will:
- If the value of your home is large in proportion to the value of your estate, and your spouse survives you, they may be compelled to sell the matrimonial home to pay out children or relatives. Similarly if your spouse dies first, you may need to sell your home or other assets to pay out the entitlement of in-laws - who may even be people you tolerate rather than like.
- If your marriage has broken down but no decree absolute of annulment or divorce has been pronounced at the date of your death, then under the laws of intestacy or under a previous will which you may not have revoked, your surviving spouse might inherit the whole or a share of your estate which is totally inconsistent with your wishes - and may deprave children
- If you are not married or in a registered Civil Partnership with your partner, they will not be entitled to anything under the Laws of Intestacy
- If you have children, a Will allows you appoint Guardians for them until they attain majority. If you die intestate, this decision will be left to the Courts
