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Raising The Inheritance Tax Barrier
When it comes to will writing, there are so many things to consider. At the top of those lists, people normally tend to think simply in terms of their assets and who they want to inherit what. This in itself can be a complicated affair for some. Families are not as straightforward as they used to be and are often disjointed, with step families and ex's all still being involved with each other. Planning your will writing can be just as precarious as seating all the complicated relationships at a wedding whilst trying to avoid the obligatory punch up.
Of course, once a person is no more, then they are not around to see the impending disagreements when an inheritor doesn't agree with. If affairs are not handled sensitively, then all sorts of disagreements can arise within families after a will has been read and while the deceased has no knowledge of this, it is morally the right thing to do to try and keep matters straightforward for them. The added pressure of a contested will can just make the loss of a loved one that much more painful.
On top of this, for the more wealthy among us who are considering will writing, it is also important to consider the inheritance tax that loved ones may face from our bequests. A recent change was made to inheritance tax laws that saw single people being able to leave 300,000 pounds and couples being able to leave assets worth 600,000 pounds to loved ones without them incurring inheritance tax costs. However, if the Conservative party have their way, this is going to change quite drastically, making a huge difference to the lives of those inheriting money and assets, as well as bringing peace of mind to those who are in the process of will writing.
Much of the moral decline of Britain has been blamed on the lack of family values and the broken family. There has been little incentive, financially, to keep families together. Many find when times are hard, that they can receive more financial benefits from being separated than they can by sticking it out together. These issues are being looked at by various Government parties in a bid to encourage families to stay together and the Tory party are doing just this.
Their aim is to allow everyone to be able to inherit 1 pounds million without the dreaded death duty and couples will be allowed to combine the allowance to 2 pounds million. This will allow almost everyone in the country to inherit a decent amount without paying for the privilege. Given the decline in property prices of late, many will inherit homes that they can then keep instead of selling on to pay the tax due.
This is good news for couples and inheritors but will it do the job of keeping families together or will it simply widen the rich/poor divide even further? Rich people will become richer and poor people will be just where they are right now.
I guess that pretty much depends on the morals and decisions of those making the will in the first place. If their main concern is that their estate stays intact and does as much as possible for the good of their offspring then it will have the desired effect. If family know they stand to inherit amounts or assets that will see them comfortable for the rest of their lives then this may be enough to keep them as a family unit but it makes you question their motives.
About the Author Tax expert Catherine Harvey looks at how those who are considering will writing have hope that the inheritance tax barrier may be raised in the near future.
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