CHARITIES TO BENEFIT FROM NEW IHT RULES
Inheritance Tax (IHT) is payable if a person’s Estate is valued over the current IHT threshold of £325,000. The tax is normally payable at 40% on the amount over this threshold. So, for example, if an estate is worth £1 million then the amount of IHT payable would be £270,000 (£1 million – £325,000 x 40%). In this example, the beneficiaries would receive the balance of £730,000 (ie £1 million – £270,000).
However, in the recent Budget, the Chancellor has announced a 10% cut in the IHT rate, from 40% to 36%, for those who leave at least 10% of their estate to charity. The new initiative, called “10 for 10”, will come into effect from April 2012.
Although this move will undoubtedly result in increased funds for charities, any family or friends who were due to...
JOINT PROPERTY OWNERS – JOINT TENANTS OR TENANTS IN COMMON?
The purchase of a property is perhaps the single most important financial transaction anyone enters into in their lifetime. When a person purchases a property with someone else it is of the utmost importance that the parties are aware of the ways in which they can legally own the property.
Specifically, it is absolutely essential that they are aware of the difference between the legal concepts of Joint Tenants and Tenants in Common.
When property is conveyed to two or more persons as Joint Tenants then on the death of either or any of them the property automatically passes to the survivor(s) without, and indeed in spite of, any Will. The Estate of the deceased takes no interest in the property.
TENANTS IN COMMON
When property is conveyed to two or more persons as Tenants in...