declarationoftrust6

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Guardians For Children

If you have children under 18 and you and your partner die, horrible thought I know, but it can happen. Have you ever thought about what would happen to your children?

I’ve asked that question to people and they usually say, “My sister/brother/mum and dad will have them”. Well, the answer is: Oh No They Won’t.

Ok, so what is the answer?

In the UK, the Local Authority will take charge, and members of the family can apply to take the children, but they will have to go through the normal application process which includes vetting, etc, and this takes time. In the meantime, the children could be placed with Foster Parents until a decision is made. Sometimes it’s up to the courts to decide who can look after the children.

All in all, it’s a traumatic time for the children, after all, they’ve just lost their mum and dad. This scenario can give you nightmares, and I’m sorry if it does, but you must face reality.

This nightmare can be removed when you simply make a Will and appoint Guardians of your choice.

You need to speak to your Local Will Writer to get this sorted.

https://powerofattorneyandwills.co.uk/2022/06/30/guardians-for-children/

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inheritance tax - is it fair?

Inheritance Tax sometimes referred to as the ‘Death Tax’, has been at its current level of £325,000 per person since 2009. You may think because it hasn’t gone up that would be better. But it’s quite the opposite.

Most people’s wealth is in their homes, and as property values have risen at a fast rate, even exploded, then more people have been dragged into the snare of Inheritance Tax.

When you die, your estate, which is everything you own, house, bank accounts, savings, ISA’s shares, pension pots, life insurance policies, death in service benefits and personal possessions etc, are added together and if the value is greater than £325,000 then it may be subject to this unfair tax. Just to remind you that anything over £325,000, tax is payable at 40%

So, if you were to leave £400,000 to your children, they might have to pay £30,000 to the taxman!

We ask: Is Inheritance Tax fair? And most say – No It’s Not.

You’ve worked all your life, paid tax on your income, paid tax on what you’ve bought through vat, possibly paid tax when you bought your house with stamp duty, fuel tax, and when you die there’s possibly tax due again, no wonder it’s called the Death Tax.

If you have a spouse, it’s £325,000 each, meaning £650,000 total, everything above that would be taxed at 40%.  It doesn’t take much to go above that figure if you add all the things together as I mentioned earlier. So, you can leave your children a nest egg and a tax bill. How does that sound?

Can Inheritance Tax Be Avoided?

I’m glad you asked that, and the answer is YES, with the correct planning using Wills and Trusts, you can avoid the tax either partially or completely depending on the value of your estate (wealth).

Talk to you Local Will Writer and Estate Planning Consultant without delay.

https://powerofattorneyandwills.co.uk/2022/06/28/inheritance-tax-is-it-fair/