Singing Pig

 

Oddly enough my wife has just got me to do a will and so I have included a discretionary will trust which allows a portion (about £280k) to be passed on tax free.

Mind you her cooking has got a lot worse since then , these mushrooms taste verry odddddd......

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Houses wanted in Hull to £80k. All considered- burn outs /refurbs or refurbished. Fast completions no surveys. Commissions paid!
Now taking on cost cutting refurbs/management Croydon and Hull.

No problem with Nil Rate Band Discretionary Will Trusts sianlloydwebber. Still 100% legal and viable. Best value tax saving scheme around.

 

Dr S

 

 

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Many thanks indeed. But how's the mechanism/provision effected in practice (after the testator's death)? In particular :
1. How's the "loan" (up to the prevailing IHT Nil-Rate) to the surviving spouse given - will actual cash have to be paid to her (which, in most cases, would not exist unless the PPR is sold off)? Or will the Revenue accept the mere IOU sans actual cash transaction?
2. Besides the above-mentioned IOU - which should be rather easy to write - should the existing Will documentation (describing the Trust) suffice, or some more/new legalistic documentation will be required in order to satisfy the Revenue?

Regards,
Sian

Sian,

This falls into the "dont try this at home" category. Your standard high street will writing solicitor will knock one of these up for about £100, its really not worth trying to do yourself unless you would like your executors to face huge solicitors fees undoing the inevitable mess when you will have created doing it yourself.

The IR is making a tougher stance on "avasion" (and not that’s not a typo) but it is being resisted quite firmly on the basic understanding that a tax payer is not obliged to arrange their affairs in such a way as to pay more tax than they have to.


PS no idea why this post is in the boardgame section!

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Many thanks, James, for the friendly warning. I do appreciate it. And I'll of course go to a solicitor if proper legal documentation IS needed. But my query was - and I suppose you were addressing my second question, the IOU documentation bit - is any FURTHER documentation necessary besides the Will (which has legally mentioned the Nil-Rate Band Trust)? That is, is the Trust ALREADY created by the Will itself, or does a typical Will for this purpose merely give direction to create the Trust (post the testator's death)?

Secondly, going back to my first question : will ACTUAL MONEY have to be shown to be given out to the surviving spouse? And hence the inclusion of this query under CASHFLOW discussion.

I look forward to your kind advice/guidance.

Regards,
Sian

Hello James! Where are you please?

Regards,
Sian