Wills - Quick FAQ's
What can I pass on to beneficiaries free of Inheritance tax?
What rate of tax is Inheritance Tax charged at?
What should I do next if I want to make a Will?
Why should I make a Will?
Making a Will is essential if you want to control where your money goes when you die. If you don't make a Will the Law, not you, decides how your Estate is distributed. This may not reflect your wishes. The laws of intestacy mean that your Estate will not automatically pass to your spouse, and a common law spouse may get nothing at all.
What can I pass on to beneficiaries free of Inheritance Tax?
For the tax year 2008/2009, inheritance tax is not payable between husband and wife. This is known as the inter-spouse exemption.
Inheritance tax only applies if the taxable value of your estate (including your share of any jointly owned assets and the assets held inside some types of trusts) when you die is above £312,000. This exemption amount is known as the 'nil rate band'.
In addition, subject to certain rules, beneficiaries to an estate can now potentially claim the 'nil rate band' of both a husband and wife (or partners in a civil partnership) when the second partner dies.
This means if they expect to inherit less than £624,000, there may not be any inheritance tax payable at all, (tax year 2008/09).
Estates and lifetime gifts
There are also a number of exemptions which allow you to pass on amounts (during your lifetime or in your will) without any Inheritance Tax being due, for example:
- if your estate passes to your husband, wife or civil partner and you are both domiciled in the UK there is no Inheritance Tax to pay even if it's above the £312,000 nil rate band
- certain gifts, like wedding gifts and gifts in anticipation of a civil partnership up to £5,000 (depending on the relationship between the giver and the recipient), and money given away to charities are also exempt
What rate of tax is Inheritance Tax charged at?
Inheritance Tax is payable at 40% on that part of your estate above £312,000 for a single person or potentially £624,000 on the second death of a married couple, (Tax Year 2008/09). You should seek advice to clarify your own situation before making any decisions based on the information you have read here.
What does a Will cost?
For your security, and to ensure that you get a Will that is tailored to your needs, we use an associated Solicitor to handle our Will Writing Service. The prices below provide a guide to the cost of putting an effective Will in place.
They are also able to take instructions on both basic wills and more complex wills that can include Trusts, Lasting Power of Attorneys, Living Wills and Property Trusts.
Straightforward IHT Efficient Wills
Single Will - £100 exc. VAT*
Joint Will - £150 exc. VAT*
More Complex Wills
Detailed quotations are available on request.
What should I do next if I want to make a Will?
If you would like to look further into making a Will, you can contact us at info@money-minder.com or call us on 0845 218 9194 between 8am and 8pm Monday to Friday and 10 am to 2pm on Saturdays when we will be happy to discuss your requirements further.
To compliant your discussions with a qualified solicitor about your Will, we are able to offer a full independent financial advice service and recommend appropriate solutions to your needs that will take account of your personal financial circumstances.