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A will is on the whole direction to whoever you’ve chosen to process your estate as to how you would like your estate to be shared after you have passed away. By pets we don’t indicate you’re bestowing your pet goldfish – although you might do! Keep reading for more

Lots of people report that, if you draw up a cheap will you can ascertain that no inheritance tax would be charged on your estate, as if the same rule applies to all. In reality many estates will not attract inheritance tax as they are beneath the allowance. Some other wills  may be more involved and we would always counsel you to check with a specialist wills writer prior to attempting to make your own will.

If inheritance tax is due, your trustees would have five months, from the end of the month in which you die, to pay the tax. At the end of this period interest will be levied and charged. Inheritance tax on specific assets, like land and buildings, may be postponed, but would still be billed sooner or later.

There are some gifts which are not subject to inheritance tax whether they’re passed throughout your life or at the time of your passing. These are contributions which you have made to UK charities or to your spouse or a civil partner. If you’re living apart but not legally divorced (or the civil partnership has not been dissolved) then you are still free to make the gift. This applies as long as both of you reside in the British Isles. This also|In addition this} conserns contributions to political parties in the British Isles and a variety of national institutions for example universities, the National Trust and national museums.

It may seem an obvious way of dodging inheritance tax by giving your house to another person, whilst  still residing there. This isn’t right, , and inheritance tax would be levied on the full value of the “gift”. An extra complication in some cases could be that the person making the gift could be charged income tax on the value of the gift which they have retained. If this  takes place they can make the choice of treating it as a gift with privisos.

There are some positions where a probably exempt transfer fee may be charged. These are gifts that are not liable to inheritance tax as long as you stay alive for 5 years after the gift is made. These take in gifts to relatives, various trusts or friends, for instance one made to a person who is  inflicted with a disability. You need to talk to an advisor  on this one, as there is a scale where the actual profit of the gift is adjusted. For example if you were to die shortly after making the gift, inheritance tax will be due on virtually all of it, however should you die later in the 7 year term, then less tax will be required. These transfers are universally referred to as PETS.

Obviously, if you do not draft a will at all, or leave a will which proves invalid, then the Revenue will in actual fact go in and decide all of it for you. Precise laws of intestacy will apply and the loved ones that you’d in reality want to pass your valued possessions and your home to could be left without anything. A correctly drafted last will and testament averts any difference of opinions. So do not take the risk – make a will and be very sure that your loved ones know where to find it!