Review your Will

6th April 2020 saw the start of the new tax year and with it the usual new tax breaks and tax increases.

One of the major breaks for married couples and civil partners is the increase of the Residence Nil rate Band (RNRB) from £150,000.00 to £175,000.00 per person.

This means that the potential transferable rate between married couples and civil partners may be £350,000 in some cases, which could mean that on second death the deceased’s Inheritance Tax threshold increase to £1M before Inheritance Tax becomes payable at 40%.

For example
On the assumption Mr Smith leaves everything to Mrs Smith on first death and then Mrs Smith leaves everything to the children on reaching the age of 21 on second death in their Wills then the following will apply.
Basic Nil Rate Band
Transferred Nil Rate Band
Basic Residence Nil Rate Band Transferred Residence Nil Rate Band
Total
£325,000.00 £325,000.00 £150,000.00 £150,000.00
£1,000,000.00

There are certain criteria attached to the use of the Residence Nil Rate Band including the types of property to include and who are defined as children.

If you would like further advise or a review of your existing Wills please contact us.

Phone: 020 8644 4441
Mobile: 07506 583669
Email: info@avalonlegal.org