A son inherited the whole of his late father’s estate when his father passed away 18 months ago. The son has one child and she has now turned 18 and is looking for a property of her own to complement her new job. The son has decided to vary some of his late father’s inheritance so that she has money for a deposit. The son’s estate is currently over £325,000 and by making a variation instead of a straightforward gift, it means that if he passes away in the next 7 years, the variation will not form part of his inheritance taxable estate. In this example this will potentially save in excess of £20,000.
We have been asked to prepare a discretionary trust for a client who does not want to leave their son his inheritance outright. Instead, the client’s daughter will act as co-trustee so that together her children can manage his inheritance in his best interests. A trust is always future-proofed and in this instance, if the son dies leaving children of his own, then they would be entitled to the remaining trust monies.
Power of Attorney
A client’s firm of solicitors has moved out of the area. We have been asked to store the original documents free of charge. The client has taken advantage of our half an hour’s free advice and she is now reviewing her Will which is 10 years old and making a new Lasting Power of Attorney for health and welfare. This was not available to her when she made her Enduring Power of Attorney for property & financial affairs back in 2007.