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DWF LLP | Private Client

Our experienced Private Client team handles a whole range of Wills, Estate Planning and Probate matters. We can also provide cost effective online Will drafting services for corporate clients and their employees.

Our Office of the Public Guardian team deals with all issues relating to capacity, including the creation of Powers of Attorney, acting as Professional Deputy and advising Lay Deputies on all types of application to the Court of Protection. The team is experienced in setting up and administering trusts and often acts as a Professional Trustee.

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For further information please contact Louise Scholes on 0151 907 3062 or louise.scholes@dwf.co.uk

Reasons to Make a Will

1. Intestacy excludes Partners
Currently there is no automatic provision in the current laws of Intestacy for an unmarried partner. Equally step-children are not provided for under these rules. If you do not have a will the intestacy rules dictate who will benefit from your estate and in what proportions. This may not be what you want. A will sets out exactly who you wish to benefit from your estate and in what proportions

2. A Will is AUTOMATICALLY revoked by Marriage
Even if the terms are to be the same, a new Will needs to be signed following marriage, or alternatively a Will can be made and specified to be ‘in contemplation of marriage’ if signed shortly before the event.

3. Effect of Divorce on a Will
An existing Will is not revoked by divorce but any gift or legacy to the former spouse lapses and does not take effect. Similarly, an appointment of a former spouse as executor would also not take effect. In both cases, this would alter if contrary intention appears in the Will.

'Why Make a Will' page – Read more

Important Reasons to Review your Will – Read more

Lifetime Inheritance Tax Planning

The need for effective tax planning to reduce ones inheritance tax liability ('IHT') is as strong as ever. IHT is charged on death but there are instances when a charge to it can arise during one's lifetime. Despite the introduction of a transferable nil rate band between spouses (please see publication entitled 'Are Tax Planning Wills Still Relevant?') there remain various avenues that individuals should explore to reduce the potential liability to IHT as far as possible. In particular, use of the various exemptions and reliefs available can be very effective and relatively straight forward. Follow the link below to read more.

Lifetime Inheritance Tax Planning – Read More

Executors need to be aware of changes to interest charged on overdue inheritance tax.

The government has announced that as from September 2009 interest payable on overdue inheritance tax will rise to 3%. Since March the rate of interest has been 0% following the fall in interest rates.

Inheritance tax becomes due six months from the end of the month in which a death occurs and is calculated on the value of a deceased's estate. A person's "estate" includes property, investments, possessions, cash deposits, some lifetime gifts and any other eligible assets. Tax is payable at the rate of 40% on the excess over the current threshold of £325,000.

The rate of interest paid by HMRC on overpaid tax will be 1% below the Bank of England's base rate but not less than 0.5%

Executors will need to be aware of these changes and to ensure that inheritance tax is paid within the six month period to avoid interest accruing at these new rates.

Executors need to be aware of changes to interest charged on overdue inheritance tax. – Read more

The DWF Inheritance Tax Plan for Companies Holding Investments

Although many do not realise it, the 'Credit Crunch' has provided increased opportunities for Inheritance Tax Planning. Inheritance Tax Planning generally relies upon a client giving his assets away and then (and most importantly), surviving seven years from doing so in order for the assets to 'fall out' of his estate for inheritance tax purposes. In the event of a client failing to survive seven years, the value 'clawed back' into his estate for inheritance tax purposes will be the value of the gift he made, at the time he made it. In addition, if a gift is to be made into trust, rather than outright to a specific beneficiary, then it will be subject to an immediate (20%) charge to inheritance tax at the time it is made, to the extent that it exceeds the inheritance tax threshold (£312,000 for 2008/9, £325,000 for 2009/10, £350,000 for 2010/11).

All these factors combine to mean that the lower the value of a gift at the time it is made, the more favourable the inheritance tax implications will be. Therefore, at a time when assets are touching new lows in terms of value, the opportunities for inheritance tax-efficient giving have never been greater.

The DWF Inheritance Tax Plan for Companies Holding Investments – Read more