Easing your inheritance tax liability

As farming families frequently rely on the natural succession of the farm, where ownership is passed down through the generations, every care must be taken to avoid a hefty inheritance tax bill. The first step is, of course, to ensure that you have a valid and up-to-date Will to ensure that the legal ownership of the land and business assets used in running the farm pass to your chosen relatives or other beneficiaries. In addition, your Will should be drafted smartly to ensure that it makes use of every available opportunity to ease inheritance tax liability – particularly with regard to the use of agricultural and/or business property reliefs. Another such measure that was only introduced in 2015 is the residence nil-rate band. Laura Carter, specialist agricultural Wills & Probate Solicitor at Pearsons & Ward…

St. Gemma's Hospice Make a Will month October

Have your Will written in exchange for a donation to St Gemma's Hospice. 

Tax planning for your inheritance

Planning how to deal with your assets in a tax efficient manner is an important but potentially complex task. An increasing number of estates will be liable to inheritance tax (IHT) on death, so it is vital to consider how your will can be drafted to reduce the amount of tax that will be taken from your estate after you die, freeing up more money for your loved ones. You can also consider whether to make gifts during your lifetime to minimise your IHT liability but this raises other tax considerations. Sian Foster, wills, trusts and estate planning solicitor with Ware & Kay (with offices in York, Wetherby & Malton), explains what you need to think about when planning for your inheritance if you wish to minimise your tax bill. Why should I think about…

Is your Will as tax efficient as it can be?

Nobody likes to pay any more tax than is necessary. We can help you to ensure your Will is as tax efficient as possible. Inheritance Tax (IHT) IHT is charged on your death at 40% on the value of your assets which exceed your tax allowances. Individuals currently have a nil rate band (NRB) allowance (of £325,000. In April 2017, an additional allowance was made available if your family home is left to your Direct Descendants. This additional allowance is called the residence nil rate band (RNRB) Rate of RNRB The RNRB is currently worth an extra £150,000 and it will be increased to £175,000 from 6th April 2020. It is not available for estates of over £2.2 million. However any unused RNRB can be carried forward for use in the estate of a surviving spouse…

Protecting your farm with a Will

The family farm usually represents a lifetime’s work of those currently running it and even those before them. Making sure that the farm is trading well and structured properly to take advantage of any agricultural and business inheritance tax reliefs available ready to be passed down to future generations is a key concern for many farmers. However, unless you have left a valid Will, the delicate balance of ensuring that all your loved ones are cared for after you are gone, while still guaranteeing the continued well-being of the farm, could be put in jeopardy. Laura Carter, Wills and Probate Solicitor and agricultural law specialist at Pearsons & Ward Solicitors in Malton explains why it is essential for every farmer to have a Will to ensure their farming business continues to flourish for future generations…

What happens to my money if I die without making a Will?

Every year thousands of people die without making a Will, perhaps thinking that their home and their money will simply pass to their partner or children.  However, the legal position is not that straightforward – if someone dies without a Will, there are rules setting out how their money, property and possessions should be divided.  In many cases this won’t be what the person who has died would have chosen. Here are some examples of how the rules apply: Example 1 – married or in a civil partnership Although you might think that everything will pass to your spouse or civil partner, this may not be the case depending on the value of your estate.  Example 2 – separated If you have informally separated but not divorced or legally ended your civil partnership, your…

World Alzheimer`s Month Two Step Plan To Get Your Legal Affairs In Order

September is Alzheimer's month. To mark the occasion, and help raise awareness of the issues faced by dementia suffers and their families, Ian Fisher Head of Wills & Probate with Ware & Kay in York, Wetherby & Malton , provides an overview of the practical legal steps you can take to help protect yourself and your loved ones. 'Alzheimer's is the most common form of dementia and affects millions of people around the world. Receiving a diagnosis can be devastating and immediate thoughts will inevitably turn to treatment and healthcare support. However, it is also important to think about the legal and financial implications of a disease that will erode your ability to make decisions for yourself. Dealing with these issues at an early stage, while you still have the mental capacity to do so…

Wills With Sarah Collier

Making a Will is one of those things that people often put off, particularly when busy with family and work commitments.  However, it is important to take the time to think about how you would like your family and assets to be looked after on your death. Why should I make a Will? There are many reasons to make a Will: To avoid the intestacy rules (which provide for certain relatives to benefit when someone dies without a Will) - for example, to benefit an unmarried partner To make sure your personal belongings go to the people you choose To appoint guardians for minor children To leave a gift to a charity Inheritance tax planning   I already have a Will - should I review it? A Will is an important document that…

Planning Ahead With Wills And Lasting Powers Of Attorney

Planning ahead is the key to making life for you and your loved ones as easy as possible; this should include thinking about making a Will and Lasting Powers of Attorney. Making a Will There are many reasons to make a Will, including: To avoid the intestacy rules (which provide for certain relatives to benefit when someone dies without a Will) - for example, to benefit an unmarried partner; To make sure your personal belongings go to the people you choose; To appoint guardians for minor children; To leave a gift to a charity; Inheritance tax planning.   Lasting Powers of Attorney (LPAs) LPAs let you appoint people you know and trust to make decisions on your behalf and enables you to give guidance to those people on how decisions affecting you should…

The Importance Of Having A Power Of Attorney

Powers of attorney are useful if you need someone to make decisions on your behalf.  This may just be temporary (for example, to ensure that bills are paid if you were in hospital) or more long-term (for example, if you have been diagnosed with dementia). What is a Lasting Power of Attorney? A Lasting Power of Attorney (LPA) gives someone you trust the legal authority to make decisions for you.  There are two types of LPA, 'Property and Financial Affairs' and 'Health and Welfare', and you can create one or both.  The Property and Financial Affairs LPA allows your chosen attorneys to operate your finances, for example to mange your bank accounts and pay bills.  The attorney can act while they have mental capacity (if you consent) but also if you lose mental capacity. A…