The Chancellor in his pre-election budget has suggested that the present Government will review the present rules that enable in certain cases inheritance tax to be mitigated.
The key area of focus and scrutiny will be a device known as a Deed of Variation. Put simply, this is a deed which if signed within 2 years of a persons death can vary the terms of a persons will. It is often used to mitigate the payment of inheritance tax . It could be used when a wealthy person who himself may have a large Inheritance Tax liability chooses not to receive an inheritance but instead, varies the terms of the will passing the legacy onto another family member, alternatively it can be used to mitigate care home fees too.
Obviously, the Lord Chancellor and future governments are focusing on all ways in which inheritance tax maybe mitigated.
For now the rules still permit Deeds of Variations and if you need advice call us now on 01482 429985, and ask to speak with Tim Murden, who can be contacted via e-mail at firstname.lastname@example.org