Murray Beith Murray LLP is a leading Scottish private client law firm.
For 175 years we have specialised in meeting the legal, financial and administrative needs of individuals and families, family trusts, charities and private companies.
When you die, if qualifying assets in your estate are worth more than £325,000 (known as the “nil rate band”), Inheritance Tax (IHT) will be due on any amount over that figure. However, there are reliefs and exemptions that can be applied to either reduce or eliminate the IHT liability. One of these is taper relief which is available in certain circumstances relating to gifts. We receive regular requests from clients asking, “How does taper relief work?”.
Whether shares in a company are liable for Inheritance Tax (IHT) depends on a number of factors. Perhaps the most obvious factor is whether the level of estate is above the IHT threshold. If the value of the estate is less than £325,000, no IHT is payable. However, if the value of the estate is more than £325,000, the liability for IHT on the shares depends on whether the shares are held in a quoted company or a private unquoted company. Business property relief applies to certain types of shares and business assets owned by the deceased.
Estate planning for blended families can be extremely challenging. When a new family is created from different relationships, it is important to understand the entitlement children who do not have the same two parents have to share in their parents’ estates. In a blended family, there are usually children from a previous relationship of one or both of the partners. This can raise issues about who gets what when one or both die(s).
When someone dies, there can be an expectation amongst family members that they will automatically receive a share in the estate. Regrettably, that is not always the case. Misunderstandings often lead to arguments and disputes in the family, which is the last thing the family of the deceased need at a time of great sadness. That is why it is sensible to try to reduce family conflict with a Will.
If you are concerned about how your assets may be distributed after you pass away, you may wish to consider preparing a Letter of Wishes. A Letter of Wishes plays a valuable role when you have left assets in trust for your loved ones and can help trustees to understand how you would like the trust to be managed. While trust deeds and Wills tend to be formal in nature, a Letter of Wishes is an opportunity to express more personal feelings and preferences. In this article, we look at what a Letter of Wishes is, when you may wish to use one, and what you may like to include.
