Choosing the Appropriate Wills and Probate Lawyers
A will is an important aspect of any individuals life. It lets you leave your assets and financial affairs to loved ones. The act of writing a will can be a calming thought in an emotional time. Solicitors can give you legal guidance and support.
Probate is a procedure by the persons assets are dispersed according to their will. Probate is usually handled by a solicitor however other professionals can assist. For instance banks can offer storage facilities for important documents. There are also trusts which allow a person to keep their money in a safe place for the benefit of a specific people. These are useful for people who wish to be able to pass their assets to their children or grandchildren until theyre old enough to manage it.
Probate is a tangled legal procedure. It involves handling the estate of the deceased dealing with outstanding debts and ensuring the assets are distributed to the right people. The process can be difficult and emotionally draining. A knowledgeable probate lawyer is a valuable source of comfort.
Lawyers who handle probate and wills are able to handle matters such as inheritance tax CGT and the disbursement of an estate. Some may also be asked to handle the administration of trusts. Solicitors also can provide advice regarding tax-related compliance.
A will may be stored anywhere. A bank may store vital documents within a secure place or a building society may offer this service. If a will disappears or stolen the family will have to undergo the legal process for obtaining a copy the will. The law may be complicated so its a good idea to have a lawyer handle the entire process.
Also a will can be the best option to safeguard you and your family's financial future. For example you could want to leave funds to your grandchildren to assist them in their education. If you're married it is possible to leave a share in your assets to them by way of a will. This can help reduce taxes on your estate.
A probate expert can provide guidance on the best way to distribute an estate. They may be able to recommend an estate trust or other method for transferring your assets. You can also use a power of attorney to authorise someone else to make any legal decision on behalf of you should incapacitated. This can be useful if you are not able to make decisions for yourself.
A probate solicitor can also give advice on the legal requirements for the validity of a will. The best way to ensure that your will is valid is to ensure that the information in it is correct. You might want to consult a probate solicitor if you think your will is too complex for the court to deal with.
The will could be a wonderful present for your loved ones. It is crucial to select your executor with care. If you don't have a will you may be unable to control the assets you have and leave your family in a difficult situation.
Inheritance Tax freezes this winter until 2028 and hits more people with an IHT bill
Following the recent Autumn Statement announcement that the Inheritance Tax threshold will be frozen until 2028 we look at whether this is positive or negative for the average person.
Whilst not a headline tax increase it definitely has the hallmark of a stealth tax. Freezing the threshold may sound positive however in practice this means many more people who do not consider themselves wealthy will be facing an IHT bill.
Freezing Inheritance Tax will hit more people
Inheritance Tax is viewed as a tax on the rich but after years of continued property price rises many more people now find themselves hitting the IHT threshold. Clearly the super-rich are likely to be caught by some form of IHT liability already so any modest change to the threshold will have minimal effect for them.
Whilst the allowance can be as high as £1m if there is a couple and the house is left to direct descendants and the Property Nil Rate Band is used the majority of Estates start incurring IHT at lower amounts.
With average property prices having risen from £157000 in 2009 to £292000 in 2022 (and increasing share prices – the FTSE100 Share index moving from around 4000 to over 7000 over the same period) then freezing the allowance for longer is going to include more estates in the IHT net.
Around 25000 estates incurred IHT per year pre Covid. This was around just over 4% of all estates applying for probate. Covid caused that figure to increase to 30000 or 5% of estates as people were not able to plan to avoid IHT.
Source: https://www.legalfutures.co.uk/associate-news/inheritance-tax-freezes-this-winter-until-2028-and-hits-more-people-with-an-iht-bill