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Making A Will.
Many people make their own wills without any regard for what may happen if their estate is liable for Inheritance Tax (death duty) after they die. DIY packs might seem to be the cheap and easy way to make a will, but they can be extremely costly if you don’t make proper provisions for avoiding as much of this tax as possible.
You can legally avoid paying Inheritance Tax in several ways, but if you don’t know your way around British law (as most laypersons don’t) then it will pay you handsomely in the end to get proper legal advice on what you should do to make sure you avoid as much death duty as possible. Once an estate is worth more than the current threshold the taxman will take a whopping 40% unless you plan to thwart him!
How much are you worth?
Most people underestimate the value of their assets by a considerable margin. Think about everything that you own – all your savings, any insurance policies that would pay out if you were to die, and shares and property as well. Paying death duty is a real prospect for most of our potential estates.
That’s why some people decide to ‘gift’ some money to people they would like to have as beneficiaries in their will before their time comes. If this is done properly it can help you to evade a significant portion of death duty.
What about monetary gifts?
It is perfectly possible to give money to people while you are still alive, as this doesn’t leave you open to having to pay death duty on the amount. There is a proviso with this however – if you die after giving that amount away before seven years have elapsed, then that sum of money will be liable for Inheritance Tax.
Many people know that there is an annual limit for gifting money
to others in this way. Another way of distributing assets among family is to give a sum of money upon the occasion of someone getting married. But the only people who know all of the legal loopholes that you can jump through regarding legal Inheritance Tax avoidance are the solicitors themselves.
That is why it is essential that you seek the help and advice of a solicitor who has extensive experience about this area of the law.
Learning about a Deed of Variation.
Sometimes someone can leave a will which has been designed to avoid Inheritance Tax by leaving everything to the spouse who lives on after them. In this case it doesn’t matter how much your estate is worth, since no Inheritance Tax will be payable if everything goes to the spouse.
However it is still vitally important that the spouse creates a will which also minimises the risk of paying large amounts of death duty, and this is what a Deed of Variation is for. The idea is that they can organise the assets in the best possible way, so long as they do so within two years of the death of their spouse.
Getting your will made professionally
Where wills are concerned seeking proper legal advice is always the best route to take. Many people decide not to do it because it costs them money, but not doing so can cost you - and your family - even more.
The best thing to do in the first instance is to seek some free advice on how to proceed with making your own will, in order to avoid being liable for a huge chunk of Inheritance Tax. Our legal experts are on hand to offer you the advice you need, and the initial consultation is completely free of charge. Simply call or fill out the form to have an expert contact you to discuss your situation now.
HELPLINE 0870 185 1842