Inheritance Tax Update
The new additional Inheritance Tax allowance (the Residence Nil Rate Band) was introduced in April 2017. It can save an estate up to £140,000 in tax but it is proving to be complicated to administer and the extra allowance can be easily lost.
We have found that many Wills produced in the past cannot take advantage of this extra allowance. Now is the time to review your Wills.
Even after someone has passed away, it is possible in some cases to apply this extra allowance, again potentially saving up to £140,000 in tax.
New Probate application fees
The Government are due to introduce new probate application fees. The current fee to apply for a Grant of Probate is £215 but the new fee will depend on the value of the estate - an estate valued at £500,000 will have to pay £2,500 under the new rules. Estates valued at more than £1,000,000 will pay £4,000.
At the moment we are not sure when the new fees will be introduced but it is currently possible to apply for a Grant of Probate far earlier than normal, thus potentially saving thousands of pounds.
We can also suggest ways in which you could significantly reduce the new fee once it is introduced. Call us today for a free informal chat.
Give us a call as there may be ways to reduce these fess
Care Home Funding
The Government are currently working on new proposals for care funding. We can be sure that whatever they finally implement, it will not make the situation any easier for those who need care or their families.
The most important thing however is to plan early. There are simple yet effective steps that can be taken to reduce the risk that all your hard-earned assets will disappear. For example we strongly recommend that if possible all jointly owned assets are split between couples to ensure that all the assets cannot be taken later in care fees.
Talk to us today, it could save you and your family a lot of money and worry later on.
Powers of Attorney - an essential part of your planning
If you or a loved one suffer an illness or accident which means that they cannot deal with their affairs, it might be necessary for the Court of Protection to appoint someone to take charge. This is an expensive and time consuming process.
To avoid this you should create a Lasting Powers of Attorney now. You decide now who you would want to help you if you were unable to deal with your affairs and then these people are able to step in immediately if you have a problem later.
You decide who these people will be, they can be family, friends or professionals. You can also decide how they will act for you and even what sort of decisions they can or can't make.
It's important that these are prepared correctly, to both fully reflect your wishes and also to allow your attorneys to always act in your best interests.