Ilkley law firm, LCF Law, is advising anyone who has not reviewed their will for more than a decade to check whether it contains a trust and warns that it may need revising to make it relevant to updated tax rules.
This is particularly true in the case of wills written before 2007, which often contain complicated ‘nil rate band discretionary trusts’ that were used to make wills tax efficient.
However, changes to inheritance tax rules now mean inheritance tax allowances can be transferred between spouses, which can make the trusts a complication when a person dies.
Ann Christian, a partner at LCF Law, explained: “Trusts in wills is something that we always ask new clients about, but it’s becoming an issue that increasing numbers of families are now specifically questioning us about.
“The inheritance tax changes in 2007 meant that wills could be much shorter and simpler, with the same tax consequences, but many people left their wills as they were and presumed they could simply forget about their trust, but this isn’t necessarily the case.