How Tickled I Am to Have Avoided Tax
Comedian and funny man Ken Dodd had the last laugh last year when he married his long term partner on his deathbed, thus avoiding Inheritance Tax and with probate on his estate just granted his Will and £27.5m fortune is now public.
Whilst solicitor, said this was a legal move she would advise clients not to wait until the last minute, but instead to plan ahead and make sensible provisions for loved ones.
“Fortunately, Inheritance Tax, though a complicated area, is one of the most avoidable taxes. Through a number of measures we can help you to minimise your liability, if not remove it totally. Trusts can also play an important part in this strategy,” said Private Client Solicitor at Pearson's
The pair married two days before Dodd succumbed to a chest infection and his partner would not be liable for IHT.
Inheritance Tax is paid on any estate (including property) worth £325,000 or more. It must be paid by the beneficiary of the Will, unless they are a spouse, a civil partner or a registered charity.
For unmarried couples, when one dies and leaves everything to the other, everything aside from these allowances may be taxed at 40 per cent. For married couples leaving everything to the surviving spouse, there will be no Inheritance Tax to pay on the first death, no matter how big the estate is.
A professionally drawn Will, together with proper tax advice, are the best ways to ensure that your Inheritance Tax liability is reduced and ensure your estate goes to those you intend. Your solicitor will be happy to discuss your options in confidence.
For advice on making you Will or chatting about Inheritance Tax call the Wills, Trusts and Probate team on 0161 785 3500Subscribe to our newsletter
Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.
This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.