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Threat to nil-rate band discretionary trusts

clairehi
clairehi Posts: 1,352 Forumite
See link below, anyone who has written their wills to avoid IHT by this route should be forewarned that this provision may be threatened as a result of this case.

https://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/04/14/nherit14.xml

Comments

  • Tiggs_2
    Tiggs_2 Posts: 440 Forumite
    Telegraph article is a nonsense - these people were caught by legislation that has been in place for over 20 years.

    Anyone doing their Wills CORRECTLY will still find the disc trust route works fine.

    Telegraph might as well be The Sun for all the use that story is to its readers (at least the The Sun would have had a pic of a fit lass in it!)
  • Tiggs_2
    Tiggs_2 Posts: 440 Forumite
    the legislation is IHT! Introduced in 1986 the rules have been around a while now.

    you avoid it by getting decent advice - the couple in the Telegraph didnt and had an unusual situation. You will only find yourself affected like them if your folks also have an unusual situation and a useless adviser.
  • elliebean_2
    elliebean_2 Posts: 247 Forumite
    This is typical press scaremongering!

    As Tiggs says, this situation doesn't involve any new threats to IHT planning, but shows the importance of paying for good quality advice. People who want to set up cheap will trusts using online sites etc. are asking for trouble in the years ahead.
  • moonrakerz
    moonrakerz Posts: 8,650 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    We are in the process of having our wills re-written to reflect new circumstances. I mentioned this Telegraph report to our solicitor. She said it was a classic case of:- "don't let the facts get in the way of a good story".

    The facts of the house purchase in this case were somewhat unusual in the first place and perhaps the legal advice given to this couple was not what it could have been.

    This is still the best way to go to get the best use out of two persons IHT allowances - but get good legal advice first !
  • Tiggs_2
    Tiggs_2 Posts: 440 Forumite
    moonrakerz wrote: »
    ......and perhaps the legal advice given to this couple was not what it could have been.

    The IHT planning failed - i think "perhaps" is being generous ;)
  • moonrakerz
    moonrakerz Posts: 8,650 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Tiggs wrote: »
    The IHT planning failed - i think "perhaps" is being generous ;)

    "allegedly !!"
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