Surprisingly, many people still die intestate (i.e. without a will).
With the ease that wills can now be drafted and the low cost of such services, it makes good sense to make a will and can save a lot of needless heartache and stress for those left behind, not to mention saving a lot of tax.
A simple will gifting all your worldly goods to your spouse or civil partner will avoid IHT on your entire estate, as gifts between spouses/civil partners are exempt from IHT.
Remember, if the nil rate band is not fully used on the first death, the unused percentage is available on the death of the deceased’s spouse/civil partner.
Example:
Rudolph dies intestate in 2015, leaving an estate valued at £1.125 million. His wife receives £687,500 (£250,000 plus half the remainder) and his children receive the remaining £437,500. As the proportion of the estate left to his children exceeds the nil rate band of £325,000, his family will face a hefty inheritance tax bill. This could easily have been avoided by making a will and leaving all his estate to his spouse or leaving property to his children up to the nil rate band (£325,000) and the remainder to his spouse.
This is a sample tip taken from our 136 page guide:
101 Ultimate Tax Strategies Revealed
Click here to receive a free copy of this tax saving guide today!
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