Changes to Inheritance Tax Interest Charges
For some months the rate of interest on unpaid Inheritance Tax ('IHT') has been at an all time low of 0%. However, from the end of September interest on unpaid tax will be charged at 2.5% above bank base rate (at present 0.5%) with interest on overpaid tax receiving 1.0% below base rate, with a minimum of 0.5%.
As the rates being charged are significantly more than the net interest that might be received on deposit (particularly for higher rate tax payers), consideration should be given to paying off any tax liability that might currently be payable by instalments.
New Lasting Power of Attorney forms
Following criticism of the Lasting Power of Attorney forms introduced in October 2007, new forms were introduced on 1 October. These are somewhat simplified. The old 25-page forms have been replaced with clearer and shorter 11-page forms. However the shorter forms come at the expense of size of print and the use of loose continuation pages.
The redesigned forms carry out the same role as before. They give the person you choose (the attorney) power to make decisions about your property or personal affairs and as before there are separate forms for property and financial matters as opposed to health and welfare issues.
Woolley Bevis Diplock LLP have many years of experience in advising clients regarding Powers of Attorney. We recognise how important it is to have these in place. To help with the cost we are currently offering our clients a special package until the end of the year whereby we will draft the Power of Attorney and deal with the necessary certificate provision and registration at £695.00 (inclusive of VAT and the Office of the Public Guardian's fee). There is also a discount where we prepare Lasting Powers of Attorney for husband and wife at the same time of £1,160.00 for both inclusive.
In order to take advantage of this please call and make an appointment to discuss your requirements.
For further information or to make an appointment please contact Megan Fairbank on 01273 722532 or at megan.fairbank@wbdllp.com.
Intestacy Changes Welcome
Inheritance specialists at Woolley Bevis Diplock LLP have welcomed changes to the rules that apply when someone dies without a valid Will, also known as dying intestate.
Under the old rules, the surviving spouse was often left in financial need because he or she was only entitled to the first £125,000.00 of the estate with the rest being shared amongst other relatives.
Now the limits have been increased. Broadly this means that a surviving spouse with children is entitled to the first £250,000.00, with any children sharing the balance. In cases where there is a surviving spouse without children, the statutory legacy has been increased from £250,000.00 to £400,000.00.
Amanda Epstein, Head of Private Client, said;
"At long last the rules have been updated. However, they still do not reflect the most common wishes of spouses dying with children."
The intestacy rules limit what your spouse can inherit and your money could then be distributed amongst a long list of distant relatives. It also means that instead of you choosing an executor to carry out your wishes, the Government appoints someone to manage your estate and the estate may not be administered in the most tax efficient way. Dying without a valid Will can be a costly mistake.
If you would like more information and guidance please contact Amanda on 01273 722532 or at amanda.epstein@wbdllp.com.
This publication provided general information and does not constitute legal advice. A Copyright in the content of this publication is owned by Woolley Bevis Diplock LLP. It is believed to be correct as at 1 October 2009 but is subject to change. To be sure you have the most up to date information, please contact us.
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