A will is at the end of the day an instruction to whoever you’ve designated to handle your estate as to how you would like your estate to be apportioned after you’ve passed away. By pets we do not purport you’re passing on your pet snake – even though you can if you wish! Keep reading for more

Many people say if you make a will you can make certain that no inheritance tax will be charged on your estate, as if the same rule applies to everyone. In actual fact many estates would not attract inheritance tax as they’re lower than the allowance. Other last wills and testaments  could be more involved and we would at all times recommend that you seek advice from a professional will writer before making an effort to do it yourself.

If inheritance is charged, your trustees would have six months, from the end of the month in which you die, to pay the tax. At the end of this period interest will be accrued and charged. Inheritance tax on certain assets, such as land and buildings, could be delayed, but will still be payable in time.

There are many gifts which are without inheritance tax whether they are passed within your life or at the time of your death. These are contributions which you have made to UK charities or to your husband or wife or a civil partner. If you are separated but not legally divorced (the legal partnership hasn’t been dissolved) then you’re still free to make the gift. This pertains if you both live permanently in the UK. This also|In addition this} applies to donations to political parties in the British Isles and various national institutions such as national museums, universities and the National Trust.

It may give the impression of being an easy way of evading inheritance tax by passing your home on to somebody else, while  still residing there. This isn’t correct, , and inheritance tax would be levied on the total value of the “gift”. An additional complication in some situations could be that the one offering the gift could be made to pay income tax on the price of the gift which they have retained. If this  comes about they can make the choice of treating it as a gift with privisos.

There are a few circumstances where a would be exempt transfer fee may be payable. These are gifts that are subject to inheritance tax as long as you live for seven years after the gift is given. These include gifts to friends or relatives or various trusts, such as one made to a person who is  inflicted with a disability. You would need to talk to a specialist  on this one, as there is a level where the real profit of the gift is adjusted. Such as if you suddenly die shortly after making the gift, inheritance tax will be due on virtually all of it, however if you pass away later in the seven year period, then less tax will be accrued. These transfers are usually referred to as PETS.

Obviously, if you do not draw up a wills at all, or draft a will which proves invalid, then the Tax Bureau will in fact go in and decide everything for you. Exact laws of intestacy will apply and the people that you’d in reality want to give your home and valued possessions to could be left high and dry. A accurately written will rules out any difference of opinions. So do not take the chance – draw up a last will and testament and make sure that your loved ones know where to find it!

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