Where thereâs a Will, thereâs a way with words For as long as lawyers have existed, despairing clients have struggled to make sense of the all too often complicated legal language. At Jackson Lees, our team prides itself on breaking down complex legal jargon to help you know where you stand.
Mark Duckworth, Head of Wills, Trusts and Probate at Jackson Lees, has listed down a few common terms that are used when it comes to dealing with a Will after someone has passed away.
Administration period The period between the date of death and the date on which the estate is wound up.
Carl Lamb on Inheritance Tax Allowances
- Credit: Smith & Pinching/Getty
This week our reader wants to know how inheritance tax works.
Reader question:
My parents are in their early 80s and in good health.
They are quite wealthy but are not in the habit of talking to us – their three children – about money matters.
My dad said recently that he didn’t think there would be any inheritance tax to pay when they die but I’m concerned he might be wrong. Can you explain how inheritance tax works please?
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Carl Lamb of Smith & Pinching responds:
Money Talk: Inheritance Tax & property rules help Britons leave funds to their children | Personal Finance | Finance express.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from express.co.uk Daily Mail and Mail on Sunday newspapers.
The allowance to which you refer is the Residence Nil Rate Band (RNRB) – an extra slice of Inheritance Tax (IHT) exemption that can be claimed when you pass your home or its value on to direct descendants (children and grandchildren).
The good news is that the RNRB does apply to stepchildren and, in fact, also to adopted or fostered children.
It can also apply to your direct descendants’ spouses or civil partners, but if the direct descendant has died, their spouse/civil partner must not have remarried or entered a civil partnership.
Both the standard Nil Rate Band and the Residence Nil Rate Band can be passed to a surviving spouse or civil partner if it is unused on the first partner’s death.
| UPDATED: 19:26, Mon, Mar 1, 2021
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Chancellor Rishi Sunak will announce his Budget on Wednesday, and while some details of tax rises are clear, others are wondering whether they could also be hit. One group that has been warned of incoming tax hikes is the self-employed, who are likely to see some perks taken away. Reports have also suggested pensions could be targeted by a stealth tax” by the Chancellor in the Budget, as the Times claimed last week. Mr Sunak is said to be planning a freeze on the lifetime allowance, the amount people can build up in their pension pot before