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Legal News | 21.12.23

The Twelve Days of Private Client-mas

As we approach the twelve days of Christmas, we thought we would make a countdown with all things Private Client.

If there is inheritance tax (“IHT”) to pay on an estate, the personal representatives must report the estate to HM Revenue and Customs within 12 months of the date of death.

There are 11 sections in a Lasting Power of Attorney (“LPA”) including donor details, attorney details, preferences and instructions and signatures (we admit, we struggled with this one).

If a testator leaves 10% or more of their estate to charity, their estate may qualify for a reduced rate of IHT.

Section 9 of the Wills Act 1837 sets out the requirements for a valid Will including that it is in writing and signed by the testator in the presence of two or more witnesses.

If a deceased survives a gift by three to seven years, taper relief reduces the effective rate of IHT on the gift by 8% for every year (we struggled with this one too).

If a deceased survives a gift by 7 or more years, there is no IHT to pay on the gift.

If there is IHT to pay on an estate, the personal representatives must pay the first instalment to HM Revenue and Customs within 6 months of the end of the month of death.

The Office of the Public Guardian is advising that it takes up to 5 months to register an LPA if there are no mistakes in the application.

Similarly, HM Courts and Tribunals Service is advising that it takes up to 4 months to issue a grant of probate or letters of administration.

If there is IHT to pay on an estate, the personal representatives should apply for an IHT reference number at least 3 weeks before they plan to make a payment.

There are 2 types of LPA: one for property and financial affairs and one for health and welfare.

There is only 1 way to ensure your wishes are followed after your death and that is to make a Will.

 

Posted By Our Wills, Tax, Trusts & Probate Team