2007 BUDGET INCREASES BENEFITS OF WI

The 2007 budget has had no adverse effect on Discretionary Will Trusts. In his speech, Mr Brown announced increases to the 'Nil Rate Band' for IHT which are ahead of the underlying rate of inflation but less than average house price inflation in the UK over the last ten years.

The new allowances follow along with potential savings to be gained by creating a Discretionary Trust in your will:

2008-09

Nil Rate Band Allowance : £312,000
Joint allowance with Will Trust in place : £624,000
Potential savings from Will Trust : £124,800

For the above to be effective you should consider:

1.Have up-to-date wills which effect a Discretionary Trust to receive the allowance of the first partner to die.

2. Be Tenants in Common (E&W) or Evacuate any Special Destination in your Deeds (Scotland)

3. Make your wishes clear to your trustees by creating a Letter of Wishes which describe how you wish the trust to be run.

If you need any further information, please call 01563 821117 any day or any time. We have a 24 hr answering service and will call you back.




Posted on 04 April 2007 at 11:16 by John