The Chancellor, Alistair Darling, has signalled some fairly significant changes to the current Inheritance Tax legislation.

Going forward, married couples or Civil Partners will be able to have their tax free allowance automatically transferred to their surviving spouse when they die.

This means that many people who have arranged our Taxbuster (IOU Discretionary Will Trust) Wills are wondering whether they need their documents rewritten.

Before taking any action it is worth considering the fact that there are other valuable benefits to the Taxbuster/IOU DWT beyond the tax savings that it offers. 

There are still clear 'Estate Preservation' benefits to a family Estate by having the relevant tax-free allowance placed in Trust.

For instance by 'ring fencing' the £312,000 nil-rate band you can ensure that the funds do not create an Inheritance Tax issue for future generations (your children and their children) who in most cases will be beneficiaries of the Trust.

By having the Trust in place you can also protect your children from running the risk of being disinherited should your spouse remarry after your death.

If you have any questions or would like to speak to one of our consultants please contact us on 0845 120 4765.