Wills & Inheritance Tax Saving Limited is registered in England under company number 6511367. Call us on 05600 926 256 or email us at info@witslimited.com .

Keeping up-to-date with legal and social developments allows us to ensure that you are fully informed about the savings available to you.

You may like to review our news from time to time to see if there have been any changes that might affect you. In any event, we would raise any relevant point with you during our annual reviews.

Problems in carrying forward unused nil rate allowances

According to the new law, when the first spouse dies, the second spouse effectively inherits any unused part of the first spouse’s nil rate band (now Ł312,000). So it is said that a couple may together own assets worth Ł624,000 before Inheritance Tax bites.

However, recent experience has shown that the tax authorities are requiring clear evidence that the first spouse allowance has not been utilised. This usually necessitates the production of old probate papers which may not be available. Even solicitors usually dispose of old papers after 6 years. If the Revenue cannot be satisfied, it is demanding that tax be paid.

One aspect of our Continuous Care Policy is that we look at the position of the testator’s whole family, not just the circumstances of one individual. We call it “Planning for Generations”. We know in advance when papers may be needed in future and provide for that eventuality. All of our records are kept in secure conditions indefinitely or returned to the family if required.

We would also advise whether it is wise to rely on the carry forward provision to avoid IHT or whether it is safer to take positive control of the family estate and draft your will to include alternative tax saving provisions.

No IHT exemption between sisters

It comes as no surprise that the European Court of Human Rights has decided that the Government has no obligation to extend the spouse exemption to cover transfers made between one sister and another.

Two sisters challenged the law on the basis that it was unfair to give an advantage to spouses which was not available to two sisters who had cohabited for many years.

Fair or not, such a gift is unlikely to make for sensible estate planning, even if the costs of the case leave them with enough assets to have a liability to tax!