Will Planning

Nearly two in three people who die in Britain die "intestate" - that is, without having made a Will. Many may have thought they had more time to sort out their affairs than, as it turned out, they actually did have.

Why make a Will?
Because it enables you to state precisely who your beneficiaries are and what they will receive from your estate; to give clear instructions about funeral arrangements; to minimise tax bills in order to leave more of your wealth to your choice of beneficiary and to appoint the people who will administer your estate after your death - your executors. The intestacy rules do not apply as you may expect and not all of your estate would necessarily pass to your spouse.

Is your Will Tax-Effective?
Each individual has a nil-rate band, currently £285,000 (2006/07), on which there is no charge to Inheritance Tax. All transfers between husband and wife are entirely free of Inheritance Tax, so transferring everything to the surviving spouse effectively means that the nil-rate band has not been used and the opportunity to save inheritance tax has been wasted. When the second or surviving spouse dies, only one nil-rate band will apply, as opposed to two, and any assets in excess of that, subject to any special relief, will be liable to tax at 40%.

The effect of failing to make any use of the nil-rate band on the death of the first spouse may be to create an additional and avoidable tax bill of £114,000 - that is 40% of £285,000.

Can thomas westcott Help?
Yes.  We will look at your current Wills, discuss your estate and calculate your potential Inheritance Tax liability. We will discuss your wishes regarding your estate and explain the various tax planning strategies and the use of Trusts and Will Planning to minimise all forms of taxation. Our discussions and recommendations will be summarised in an Inheritance Tax Planning Report.

If you wish to implement our recommendations we can oversee the set up of Trusts and can help in advising on the drawing up of your Will. Our partners can also be appointed as executors.