Press release

Inheritance Tax changes raise important questions

15th November 2007
“Since Chancellor Alistair Darling announced immediate changes to Inheritance Tax in October we have received many calls from clients who are unsure whether or not they now need to change their Wills” says Wills and Trusts specialist Rod McCulloch of Wycombe solicitors Reynolds Parry Jones. “People want to know if they still need a Discretionary Trust to protect the assets of the surviving partner, and others are concerned about the status of widows and widowers” he went on.

As is so often the case, there are no simple answers. As Mr McCulloch continued “Everybody’s circumstances are different, and it’s simply not possible to give a straight answer without looking at each case individually.”

“One thing is very clear, though. It is now possible for the estate of the surviving member of a married couple or civil partnership to benefit from the unused proportion of the tax exempt £300,000 allowance of their partner in addition to the allowance which applies to the estate of the survivor who has just died. This can give the estate a nil rate band of up to £600,000 representing an inheritance tax saving of as much as £120,000.This applies however long ago their partner died.”

Many situations are not so simple, though, and Mr McCulloch believes that anyone with concerns should talk to a solicitor. “Even if we advise that nothing needs to be done, then at least you have the peace of mind of knowing that you have reviewed your arrangements. Also, there will be circumstances in which a Will needs to be written or other arrangements need to be changed, which may save your beneficiaries a great deal of money.”

“Contact me on 01494 525941 for a private discussion of your situation” he advised.