Author: Saara Patel
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Use Lifetime Gifting to Reduce Inheritance Tax
Lifetime gifting is a powerful estate planning tool that can help reduce your inheritance tax (IHT) liability. By taking advantage of certain exemptions and allowances, you can give away assets during your lifetime while benefiting from tax savings. In this guide, we explore some of the key gifting exemptions that everyone should consider when planning…
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Father Reclaims £2.2m Estate in Court Dispute
In a high-profile legal case, Michael Parker, a multimillionaire businessman, won a court battle against his son over the ownership of a £2.2 million mansion. The dispute centred around whether the property was a gift or held in trust. This case underscores the complexities of estate planning, particularly when large sums and valuable assets are…
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Key Differences in Legal and Beneficial Property Ownership
Understanding the distinction between legal and beneficial ownership in joint property is crucial, particularly when considering tax implications. These concepts play significant roles in the management, taxation, and inheritance of property. Whether you’re a homeowner, a trustee, or someone planning your estate, knowing these differences can save you from unexpected tax liabilities. (Read Time: Approx.…
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Property Elections:
Understanding Ownership and Tax ImplicationsWhen it comes to owning property jointly, especially for married couples and civil partners, grasping how beneficial ownership influences tax liabilities is crucial. While the legal owner of a property is easily identifiable, it’s the beneficial ownership that often determines who is taxed on income generated from the property. This can become complex, particularly when…
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Do I Need to Pay Inheritance Tax?
Inheritance tax is a hot topic in the UK, affecting more and more families over time. But why do we pay this tax, and what is it really for? (Read Time: Approx. 3 minutes) Topics Discussed: What is Inheritance Tax? Inheritance tax, originally introduced in 1894 as Estate Duty, was first meant to tax only…
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Don’t Put Your House into The Names of Your Children
Transferring your home to your children might seem like a smart move to avoid inheritance tax or simplify estate planning. However, this decision often leads to significant tax implications and other financial pitfalls that can outweigh the perceived benefits. (Read Time: Approx. 4 minutes) Topics Discussed: The Inheritance Tax Trap A common motive for transferring…
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Meet the Unexpected Victims of Inheritance Tax
Inheritance Tax (IHT) often hits hardest where it’s least expected, particularly among siblings, nieces, nephews, and friends who inherit property. Unlike parents and married couples, who benefit from specific tax reliefs, these groups find themselves facing substantial tax liabilities. (Read Time: Approx. 6 minutes) Topics Discussed: The Sibling Trap Under current inheritance tax rules, the…
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Correcting a Solicitor’s Error in a Will –
A High Court VictoryIn a recent landmark case, Nina Angelova succeeded in amending her late fiancé Peter John Bryant’s Will, rectifying a solicitor’s clerical error. This decision by the High Court sets a precedent for addressing mistakes in legal documents, particularly Wills, highlighting the importance of accuracy in reflecting a person’s final wishes. (Read Time: Approx. 5 minutes)…
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The Risks of Using Unregulated Will Writers: Protecting Your Estate and Heirs
Creating a Will is a crucial part of estate planning, but opting for unregulated Will writers can pose significant risks; potentially jeopardising your estate’s integrity and your heirs’ rights. Recent findings by the Competition and Markets Authority (CMA) highlight the dangers in the unregulated legal services market, particularly concerning Will writing and pre-paid probate services.…
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The Importance of Early Estate Planning
Estate planning and making a Will are often considered tasks for later in life, perhaps closer to retirement. However, it is crucial to understand that it’s never too early to start this process. (Read Time: Approx. 4 minutes) Topics Discussed: The Importance of Making a Will Early There is a common misconception that making a…