IF YOU WANT TO REVIEW OR REMOVE A
DISCRETIONARY WILL TRUST FROM YOUR WILL FOLLOWING THE PRE-BUDGET REPORT
Many people will want to keep the Discretionary
Will Trust in their will as it provides much more than just IHT
savings. For unmarried couples or siblings living together it provides
a way of getting both £325,000 IHT allowances attached to the house
which the transferable allowance does not. However, there is one
scenario when the transferable allowance could be better for your
current 'nil rate allowance' is £325,000. If a husband dies this year
and his widow dies ten years later and the allowance is £650,000 the
total amount the estate can pass on tax free will be £1,300,000. If the
couple used the Discretionary Will Trust to 'Double Up' their
allowance, unless the trustees of the trust have the power to index the
amount originally passed on trust by the House Price Index, the total
tax free element could be just £975,000 (£325,000 husband's allowance +
£650,000 wife's allowance.
For existing Discretionary Will Trusts, this is
easily rectified by giving your trustees the power to index the value
of the loan by way of a codicil. We will provide this free of charge to
clients who completed their estate planning with us after 8th October
2006 as all our clients may request any change to their will within 12
months free of charge.
If on the other hand you feel the Will Trust should be removed, we can
do that as well.
If you wish to review your will in light of
changes to the rules surrounding IHT please get in touch.
For your Free Report on the benefits
of trusts: e mail us now!
Please note: We send these by e mail, not post. Or phone us free on 0800 781 6743.