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Wills

When most people think of writing a Will they think about avoiding the problems caused by intestacy (dying without a valid Will), about nominating executors and guardians of their choice and about distributing their assets to their loved ones in the proportions they wish. Today making the right Will for one's circumstances can achieve so much more.....Here at EPS we aim to be much more than Will writers.

Avoid Inheritance Tax using Inheritance Tax Saving Wills

20 years ago Inheritance Tax used to be a tax payable only by the very rich. In the 2005/06 tax year it is estimated that £3.9 billion of Inheritance Tax will be paid - and the large part of it will be paid unnecessarily by people who have failed to plan against paying it. Inheritance tax is the only voluntary tax. However, as a direct result of house prices rising far more quickly than Inheritance Tax allowances over the last 10 years an increasingly large percentage of the population are now liable for Inheritance Tax. Indeed many people do not realise the extent of their estate and consistently underestimate their net worth.

By writing "Inheritance Tax saving Wills" a couple can utilise both their Inheritance Tax allowances so that Inheritance Tax is only payable on estates in excess of £600,000 (Tax year 2006/07). By writing Wills including Nil Rate Band Discretionary Trusts you can save up to £120,000 (£124,800 from 6 April 2008) in Inheritance Tax, at today's rates. And because the clauses refer to the Nil Rate Band and not a specific amount your Will automatically takes the annual budget increase in allowance into account so the tax saving increases year on year!

It is important to note that proposed legislation is due in Summer 2008 (when the Finance Act 2008 comes into force) which will allow transferability of the Nil Rate Band (the amount at which IHT is charged at 0%) for married couples.  However, there are still compelling reasons to use discretionary trusts within Wills and Inheritamce Tax saving trusts will still be effective for unmarried couples.

For more information on how to avoid Inheritance Tax please click here...

Protecting your property

For most people the main asset they own is the family home and they wish to ensure that the whole of the value of the property is left to their loved ones. Unfortunately there are two major threats to you achieving your wishes: -

The first is local authority care home fees should you or your partner need to go into care. With 1 in 4 men and 1 in 3 women spending their last years in care the likelihood is you will be affected. For example 3 years in a care home costing £750 per week will cost £117,000 so it is easy to see how this could quickly deplete your estate.

The second threat is a death and remarriage scenario where the surviving spouse or partner remarries and then predeceases the new spouse leaving everything to the new spouse and effectively disinheriting their own children and/or loved ones.

By carefully planning your estate and writing the correct Wills you can avoid these potential pitfalls, ensure your children/loved ones inherit what is rightfully theirs, whilst at the same time retaining control and protecting each other. A win-win situation!

A Protective Property Trust Will does precisely what it says. It helps you to protect your property. A Trust is set up so each spouse or partner can determine where their share of any property is distributed on second death. These Wills are suitable for mitigating long-term care costs, to avoid the death and remarriage scenario and for newly married couples with children from former relationships.

For more information on how to protect your property click here...

Mirror Wills

Mirror Wills reflect each other, normally leaving everything to each other and then down to the children and grandchildren. They do not mitigate Inheritance tax and do not protect the property. These are therefore only really suitable for married couples or couples in long-term relationships, with or without children, who are not concerned with the impact of Inheritance Tax, local authority care home fees or their loved ones losing their inheritance following the death and remarriage scenario described above.

Single Wills

These Wills are suitable for single people, with or without children.

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