Inheritance Tax is at present a tax which is relatively easy to avoid, legally, provided you contact our IHT Planning team in good time.  A very low cost initial review can pave the way for massive savings to the benefit of future generations of your family.  But in this case, it was clearly left too late….Or should we say, trying to avoid Inheritance Tax.  The Telegraph reports:

“A 56-year-old woman has been sentenced today to two years in jail having lied to HMRC about the value of assets she inherited after the death of her aunt. She claimed to have inherited £285,000 when the sum was in fact £1.5m.

She also lied about financial gifts made to her by her aunt before her death, the taxman said.HMRC has issued details of the case and conviction to deter others from understating inheritances in order to avoid death duties.Currently estates below £325,000 are not subject to the tax. Assets above that threshold are taxed at 40pc.Married couples or civil partners can add their two “nil rate bands” together, giving a joint allowance of £650,000.

HMRC said that Ms Bunn, from Hassocks, Sussex, confessed, following an investigation, that in addition to understating the value of her inheritance she also “failed to declare substantial cash gifts from her aunt while she was alive”.

Only gifts within certain strict limits are exempt from inheritance tax, unless the person who makes the gifts lives on afterwards for at least seven years.”Main Inheritance Tax page,More on the story. 

I am the sole executor and a major beneficiary in a will that names 15 other beneficiaries and I have a question about Deeds of Variation.I would like to make a deed of variation so that my inheritance passes either directly to my children or to my grandchildren.  As I understand it that means that my estate would not be liable for any Inheritance Tax if I died within 7 years.I have not discussed this with them yet as I want to know if it is possible to do this before I talk to them.If I make the variation when I send the distribution account to all of the beneficiaries would I show myself as the beneficiary or those named in the deed of variation?

Deed of Variation Disclosure Answer.

The most common reason for Deeds of Variation is, as you say, to legally avoid unnecessary Inheritance Tax.Too often, people’s Last Wills are not kept up to date and already wealthy children inherit money they have no need for from their parents, when their children and grandchildren are in genuine need of help with massive mortgages, school or university fees to pay.Creating a variation to under age children is more complex than a standard variation as it means that trusts have to be created.As far as the distribution account, it should reflect the actual situation, but if you don’t want to tell others, use the deed of variation immediately after you have distributed to the other beneficiaries. In other words, there is no reason that anyone other than your intended beneficiaries even knows you have made the Deed of Variation (apart from us and HMRC of course!) So in general, there is no requirement for deed of variation disclosure except to the Taxman where it affects Tax, normally IHT or capital gains tax.I have had a word with Deed of Variation and tax planning solicitor and it is likely that we would charge just our basic fee for such a variation.Main Deed of Variation page.

Probate Quotes: How much can we save you? It costs nothing to find out.

We find that working with professionals who mirror our friendly and cooperative approach to dealing with an estate after death often results in reduced probate costs / probate fees of around 75% less though it may be more or occasionally less – as well as being a great relief to family executors who don’t really have the experience of a probate lawyer. In the end, both executors and beneficiaries can lose out – which may result in probate claims rather than low probate administration fees. Rushing off to the nearest high street solicitor may result in excessive bills and non-expert staff.We have seen cases where folk have tried to avoid probate lawyers costs and accidentally triggered needless 6 figure tax charges in Last Wills designed to save tax!If you do feel that you need some help, our job is to keep the cost of probate fees as low as possible. Contact us to find out how to reduce probate costs.Using The Probate Department to reduce probate costs after a death will probably save thousands of pounds will be available for the benefit of your chosen beneficiaries if we help you to cut probate costs.

Check out the Assisted Probate Service.

This is pretty much the best way to reduce probate costs, but still have access to professional assistance – as much or as little as you wish. Just pay for the time needed – their is a £250 deposit, but if that isn’t used up, the balance will be returned. We invented the concept and persuaded one of our contacts to implement it, which some success, I am pleased to sayAssisted Probate Service page.

Let us help you to Cut Probate Costs.

Our contacts fees are based on a simple hourly rate in most cases.  They will quote a flat fee based on full disclosure of the case, if that is your preference. They will deal with as much or as little of the probate work needed to wind up the estate as you wish.  The more work the family does, the lower the probate costs!In terms of additional hidden charges, they only charge for significant things which they have to pay out.  They don’t charge for letters or phone calls (though they might if they are overseas!) or or stamps, or £35 per letter or email.  They will charge for Court Fees, Registrars fees, and specialist work like conveyancing and mileage. More on “disbursements.”In the vast majority of cases, discussions can take place on the phone, email reduces costs if appropriate and the post is very useful.If you haven’t had a quote for probate from the executors appointed in your Will and they are professionals – you should obtain one immediately before it is too late, you are dead and they are in sole charge – and it is too late to renegotiate the fees!  All you can do is ask them to resign, but they won’t resign if they have started work. Some charge a “responsibility allowance” of as much as 1.5% plus VAT of the entire value of your estate. Plus their hourly rate which could be twice that of the firms we recommend.If you have appointed ludicrously expensive professionals (they aren’t all!) or (worse) banks, why not contact us immediately and we can assist you to set up a Codicil to put your family back in charge, and able to negotiate cut probate costs (preferably through us!)  You can still use the same bank or solicitors, but the family will appoint them after death and the family will then be in charge, not the professionals.For friendly professional probate help contact us here and reduce probate costs.

Cut Probate Costs and save thousands.

Our friendly and co-operative approach to dealing with an estate after death typically results in a cut of probate fees of 75%  or even more.  As well as being a great relief to family executors who don’t really have the time or experience to carry out the work of probate efficiently. In the end both executors and beneficiaries can lose out – which may result in probate claims rather than low probate fees.We have seen cases where folk have tried to avoid probate fees and and accidentally triggered needless £100,000 plus tax charges in Last Wills specifically designed to save inheritance tax!If you do feel that you need some help, our job is to keep probate fees as low as possible. Please do contact us to find out how to cut probate fees.Using The Probate Department to cut probate fees after a death will probably mean many extra thousands of pounds will be available for the benefit of your chosen beneficiaries if we help you to cut probate fees.

Probate Quotes: How much can we save you? It costs nothing to find out.

what to do when someone diesOur probate fees are based on a simple hourly rate in most cases.  We will quote a flat fee based on full disclosure of the case, if that is your preference. We will deal with as much or as little of the probate work needed to wind up the estate as you wish.  The more work the family do, the lower the probate fees! At least, as long as it is correct ;-)In terms of hidden charges, we just charge for significant things which we have to pay out.  We don’t charge extra for letters or phone calls (we might charge if they are overseas!) or stamps.  We will charge for Court Fees, Registrars fees, conveyancing and mileage etc.   We charge by the minute so 6 one minute calls are charged as 6 minutes, not 6 units of time (each unit being 6 minutes!) as many firms do.   We don’t charge £45 for a letter which takes 5 minutes to send – we charge for 5 minutes.   It always pays to read the small print.Provided you are within reasonable reach of our main bases in Hastings, Eastbourne, Burgess Hill  and Worthing we can easily come to see you to get the details, and we have representatives in most areas of England and Wales.  And that can be outside of office hours if that makes life easier.If you haven’t had a quote for probate fees from any professional executors appointed in your Will  – you should obtain one immediately, before it is too late, you are dead and they are left in sole charge.  It is then far too late to renegotiate the fees!  Solicitors often charge a “responsibility allowance” of as much as 1.5% of the entire value of your estate.  Plus their hourly probate fee rate which could be three times ours.If you have appointed ludicrously expensive solicitors (they aren’t all!) or (worse) banks, why not contact us immediately for a Codicil to put your family back in charge, and able to negotiate sensible probate fees (preferably with us!)  You can still use the same bank or solicitors – if you wish.  But the family will appoint them after death and the family will then be in charge, not the professionals.  And if the don’t like the probate fees or their work rate, they are able to change.Contact us to cut probate fees here.

Cut Probate Fees