that we can change someone's Will after they die?
McClure was founded away back in 1853. We service about 500 new clients each month. We developed the Gift of Hindsight to assist our clients.
So what is the Gift of Hindsight and what does it do?
A Gift of Hindsight can protect half the estate against care costs and avoid Inheritance Tax. When someone dies, whether that is a spouse or a partner or indeed a parent, that inheritance is protected in a Will Trust and does not become part of their estate. This can save the family thousands of pounds.
If a spouse has died, without a Gift of Hindsight everything normally goes to the survivor and is liable for the survivor’s care costs if that survivor goes into care.
And that’s a 1 in 4 chance. With a Gift of Hindsight we change the deceased’s Will and put the assets into a Will Trust for the benefit of the survivor and the children. In practice, nothing really changes but that half is protected against the survivor’s care costs. We can even arrange this even if the deceased didn’t leave a Will.
If however a partner has died, we can do exactly the same. In this case however the Gift of Hindsight can protect not only against care costs but against Inheritance Tax. Say a couple had an estate of £400,000. One partner dies. The other partner inherits and then dies with the whole £400,000. Since they are not married, the survivor only has a £325,000 allowance and therefore the other £75,000 is taxed to IHT of 40%. However with a Gift of Hindsight, we change the first partner’s Will to put that one’s £200,000 into a Will Trust which will be exempt from IHT as it’s below the limit. When the survivor dies that one’s estate is also below the limit and therefore there is no IHT to pay. In other words by using the Gift of Hindsight we use 2 Nil Rate Band Allowances for IHT rather than just one.
It might be a parent who has died and left the estate to the children or other beneficiaries. Very often that inheritance will create an IHT liability on the part of one or more of the children. The parents might not have an IHT liability and the children might not have an IHT liability but when the children inherit from the parents that very often creates an IHT liability or at the very least makes the children more likely to be liable to IHT when they die. Again a Gift of Hindsight can be extremely useful here. We simply change the parents’ Will (or prepare a new Will for them if they didn’t have one) and put that inheritance into a Will Trust for the benefit of the child and his or her family. In practice the child will not notice the difference but the huge advantage is that that inheritance is then protected in a Will Trust and is not treated as part of the child’s estate for that child’s IHT. As an example say we have a widowed mother with an estate of £600,000. She does not have an IHT liability but when she dies she leaves £300,000 to each of her 2 daughters. One daughter is not likely to have an IHT liability on her death and accordingly she can receive the inheritance directly. The other daughter already has an IHT liability and receiving a further £300,000 will make her liable on her death to IHT of £120,000.In that case we use the Gift of Hindsight to change the mother’s Will so that the £300,000 due to the second daughter is protected in a Will Trust. That Gift of Hindsight can save that family up to £120,000 in Inheritance Tax.
Here is another example we had recently. A client died a few years ago. He had a Will for which he probably paid about £150. He left everything to his daughter who was his only child. But she was already over the inheritance tax limit. The father died. The daughter inherited. The daughter then died. Inheritance tax on the inheritance alone was £55,000. The family came to us. We used a Gift of Hindsight to protect the inheritance in a Trust. This saved the family £55,000.
Another advantage of the Gift of Hindsight is that it ensures that your inheritance goes where YOU want it. You keep control during your lifetime and your Trustees ensure that your wishes are honored after you die.
So why not take advantage of a free obligation meeting with an experienced consultant.
Home visits are available.