Wills
Wills in themselves are not a total inheritance tax solution. Some wills simply do not think far enough ahead. For example, a testator wishes to ensure his children inherit the family assets. Unless a properly prepared will is executed, the surviving spouse may spend spend spend after the testator has died, thus reducing the assets for the children to nil. It is not unusual for the surviving spouse to be take in by an interested third party who is only interested in his or her wealth. A fairly simple device can give the surviving spouse the enjoyment of property during his or her lifetime but ensure that it is inherited by the children of the marriage thus protecting the hard earned assets of the testator.
If you would like us to prepare English and Spanish wills for you and to discuss potential inheritance tax planning then please contact us for an informal no-obligation conference. Please complete the attached questionnaire prior to contacting us so that you are reasonably certain of your asset position when we talk matters through
Trusts
Many people think that trusts are only for the wealthy. This is a grave misconception. Trusts are an extremely useful device and can be used, for example, to protect assets from spendthrift members of the family, from third party creditors and to a limited extent to protect against disastrous marriages or partnerships. A trust can be set up as little as £10.00 and can be added to over the years. They can be established to meet the educational needs of minor children and have the advantage of ring-fencing the assets of the person establishing the trust.
For more wealthy individuals, an amount up to the nil rate band [£312,000 from April 2008] can be put into a discretionary trust and provided he/she lives for seven years from the date of establishment of the trust, this amount falls outside the taxable estate of the person setting up the trust. Husband and wife and civil partners can effect such trusts using up to £312,000 each every seven years. The nil rate band device can also be utilised by parties who are co-habiting and who cannot take advantage of spouse exemptions available to married couples and civil partnerships.
Please contact us on 07894 85643 to discuss further.
Note: The purchase and ownership of Spanish property raises inheritance tax implications both in Spain and in the UK.
