Legal Updates

Widows and widowers ''missing out'' on inheritance tax entitlements

Date:  07 Aug 2008

Complex inheritance tax rules are causing thousands of UK widows and widowers to lose out on entitlements amounting to millions of pounds, it has been claimed.

Under new arrangements which came into effect on July 21st, married couples and civil partners can transfer the unused parts of their inheritance tax nil-rate band - currently £312,000 – can be left to their partner upon death.

The outcome in theory is that they are able to leave a higher proportion of their estate tax-free to a loved one, although critics have suggested this may not always be possible.

Speaking to What Investment, Wills and probate lawyer Howard Burns explained that a significant amount of paperwork has to be provided to prove the original estate holder did not utilise their entire tax entitlement.

He stated: "Widows and widowers have to prove they have the right to claim the inheritance tax break.

"Many people are confused by the list of documents required.

Unfortunately, it is likely that some people will end up with a big inheritance tax bill just because of HMRC red tape."

Examples of the types of documents needed include estate accounts, deeds of variation, wills and grants of probate.

Estate holders may wish to discuss inheritance tax and other private client matters with a legal professional.

At Vizards Tweedie our specialists dealing on all matters of Inheritance Tax are Christine Green, Tony Millson and Judith Cuxson

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