Wills and estate planning

Making a Will that's right for you

CGT on Chattels & Wasting Assets

People often worry about paying CGT on gains above the annual allowance (£10,600) on the sale or gift of investments, and second homes or buy to let property. Bigger gains can be “held over” when assets are transferred into a discretionary Trust, but that has become less attractive with gifts into Trust bearing Inheritance Tax at 20% over the £325,000 nil rate band threshold.

What are not so well known are the CGT exemptions for “alternative investments” such as  “chattels” and “wasting assets” as long as you are not trading in them.

Cheap life cover - the cost of delay?

Thanks to EU edicts to eliminate “discrimination” by “gender neutralising”, the cost of life insurance is likely to increase significantly from 31 December 2012. Insurers will not be able to set differential premiums for men and women, based on life expectancy and health, as they have done for hundreds of years. This may increase the cost of protection cover for women in particular, while for men the cost of income protection may also increase.

Contributing to Grandchildren’s Education

Older clients often want to talk about helping with the cost of grandchildren’s education, and the question may be raised – what about setting up a Trust?

An “Accumulation and Maintenance” (A&M) Trust was a conventional answer up to about 5 years ago, for those who had the funds, but changes to the taxation of trusts over the past few years have reduced their attractions. However, there are alternatives such as a “Bare Trust”.

Intestacy

Introduction

Many people die without making a will.  Depending on the size of their estate and which of their near relatives survive, dying intestate may have undesirable results.  A surviving spouse or civil partner may find they are sharing the estate with distant relatives of the deceased who are not only already well provided for, but may have had little contact with the deceased for some time.

Guide to Pre-Owned Assets Tax

What is POAT?

POAT is an income tax levied since 6th April 2005 on the value of benefits still enjoyed in respect of assets which you gave away as long ago as 18th March 1986. It was introduced to catch people who undertook “artificial” Inheritance Tax (IHT) planning exercises, legitimately and successfully at the time, and to deter people from attempts to avoid IHT in future, particularly in relation to houses which they continue to “occupy”.

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