A will allows you to take charge of where your estate goes at the time of your death. Previously by establishing a nil rate band discretionary will trust you have the chance to move an amount equal to the nil rate band at the time of your death. This is given to a trust that allows your surviving spouse to still have access to capital or income, but it is not part of their estate when they die. This simple plan for married couples would currently save £120,000 in tax if the whole of the nil rate band is used. – We can recommend suitable legal services to help you implement this plan.

Changes since October 9th.

The changes to the inheritance tax rules for married couples and civil partners came into force on 9th October 2007. These allow for the transference of a previously unused nil rate band on the death of the first partner to the surviver. This has the effect of simplifying previously will planning. Alexander Calder still strongly recommend the creation of a will to avoid intestacy directing the distribution of an estate on death.

There are circumstances where a widow / widower is to re-marry, when a discretionary will trust can still be advantagous.

To contact Alexander Calder about using a will for inheritance tax planning, click here .