How does the Autumn Statement 2014 affect people in the Eastbourne area?
From the estate planning lawyer’s viewpoint, quite a lot has changed in 2014.
The Government has rejected an attempted coup from the Taxman, who apparently unilaterally, decided to close down a really useful Inheritance Tax loophole in June 2014.
We wonder how many millions have been lost to the Taxman in Inheritance Tax in that time, simply because advisers stopped advising clients to use the hitherto legal planning device? Not really cricket, the Civil Service telling the Government what the Law is.
So we are now back to Trusts being really useful in planning to preserve as much of your wealth as possible for the future of your family, so if your assets (including insurances etc) are more than the current “nil rate band” (tax-free allowance) of £325,000, it is worth your while to get in touch. We provide a face to face service in the Eastbourne, Polegate, Bexhill, Hailsham and Seaford areas – and further afield if you want to travel. But we also work nationally, so don’t worry if you are not local. We offer London level expertise at modest seaside fee levels!
Autumn Statement 2014 – one in the eye for the Taxman!
In essence, the Autumn Statement said that the Government were not going to do what the Taxman had told them to, which means that an individual can potentially establish many Trusts, each with its’ own Nil Rate Band allowance. That gives masses of scope for you to set up Trusts for the benefit of children, grandchildren and onwards. We have some good state schools in Eastbourne but what if they are terrible when your grandchildren or great-grandchildren need them? Would it not be nice for their parents to have the option of using their Trust Fund to pay fees for Eastbourne College, or some other private school? Hopefully, that won’t be necessary and the Trust can help them get on the housing ladder and perhaps do the same for several generations.
A Trust can last for up to 125 years and it is not necessarily an especially expensive operation to set one (or more) up. Very often, the cost of the Trusts can be saved (depending on the type of trust) in reduced inheritance tax or capital gains tax which may otherwise be payable. Other advantages may be speed of access for the intended beneficiaries to the assets on death and in some cases reduced probate fees.
Trusts are wildly under used, so why not contact Eastbourne Law and pop in for a chat?