In the wake of soaring inheritance tax receipts, which reached a staggering £7.5 billion last year, UK families are being encouraged to get their affairs in order by drafting a Will, particularly as the new Labour Party government plans a tax clampdown. Stacey Love, a tax and estate planning expert from Canada Life, shared her insights with GB News, emphasising the significance of having a Will in place.
Stacey Love advised on GB News: “For benefactors, writing a will is the most important step you can take to support your loved ones after you’re gone. Likewise, engaging with a financial adviser can be invaluable for estate planning in tax efficient ways.”
She further elaborated: “Finances aside, it is also a huge weight off your loved one’s shoulders too. It offers clarity and helps to prevent disputes and additional stress. Don’t be afraid of having an open conversation about your wishes with those you want to leave an inheritance to. A professional financial or legal adviser will also be invaluable for offering independent advice and guidance.”
With fixed costs for will writing services starting at £150 for a single will, £245 for mirror wills, and £399 for trust wills, Ms Love highlighted the importance of not only creating a Will but also maintaining it: “Once you’ve completed your Will, don’t just sit back and forget about it. Talk to your family, let them know where it is being kept. Also make sure to review it every couple of years – family circumstances change over time, and you need to make sure your Will evolves too.”
The Resolution Foundation has made a “good case” for abolishing the £175,000 main residence nil-rate inheritance tax (IHT) band, which is in addition to the basic £325,000 nil-rate IHT band that every adult is entitled to. Together, these two allowances enable each adult to transfer up to £500,000 worth of assets to their loved ones, completely exempt from IHT, reports Birmingham Live.
As a result, married couples and civil partners who plan meticulously can pass on a total of £1million. The Resolution Foundation has branded the residence nil-rate band as “a complex and distortionary relief”, suggesting that Labour should consider its removal.
