When did you last check your Will?
On the 6th April 2017 the government will introduction the new Inheritance Tax Residential Nil Rate Band (RNRB). This will allow each individual an extra £100,000 of Inheritance Tax allowance. For a married couple this could be £200,000. This means the total tax free allowance could be £850,000 as of 6th April. However, it is very specific and your existing Will may not be setup to make use of it. In fact, many Wills are written in such a way that it is excluded!
What is the RNRB?
This is a new tax free allowance being introduced this April. Provided the main residence is left to the children an extra £100,000 of tax allowance is available. This means an individual can leave an estate of up to £425,000 which includes the family home (Main residence) completely free of tax. If this is the surviving spouse or Civil Partner, then a total amount of £850,000 can be left completely free of tax if it includes the family home and is left to the children.
This allowance will increase by £25,000 each year until the 20-21 tax year. Therefore, if an individual dies after 6th April 2020 their estate will be tax free up to £500,000 if it includes the family home and this is left to the children. Again, if a couple then potentially £1,000,000 can be left tax free.
If you expect your estate to be worth more than £325,000 then you should review your Will today to ensure the new Residential Nil Rate Band can be used. Here at Atheneys we can complete a full review of your Will and advise you on the steps you need to take to make the best use of your Inheritance tax allowance. If you don’t act your estate could end up paying thousands of pounds more in tax than it should.
As a quick guide, if you have a Discretionary Trust in your Will, you should have it reviewed by a specialist in Estate Planning as soon as possible.
Act today, call Atheneys on 01202 798345 or send an email to