Blog | Posts by Clive Barwell

One of the most comprehensive reliefs from Inheritance Tax (IHT) is Business Property Relief (BPR). This has been part of the IHT landscape since the tax was first introduced in 1984 and, for many years, has provided 100% (originally 50%) relief for qualifying business assets.

Former Chancellor of the Exchequer, Roy Jenkins, once said, “Inheritance Tax is a voluntary levy paid by those who distrust their heirs more than they dislike the Inland Revenue”! Whilst the rules have been tightened-up somewhat since he said this, there are certainly many things that can legitimately be done to reduce the burden of Inheritance Tax.

Between the upper and lower capital limits the tariff income applied is £1 per week for every £250 the capital exceeds the lower limit. This is equivalent to a guaranteed return on that capital of 20.8% per annum net of charges and taxes. Mission impossible!

Are inheritance gifts a good way to avoid Inheritance Tax?

In a word, yes! However, are you absolutely certain you can afford to make the gift in the first place? Have you enough income and other financial resources to maintain your standard of living throughout your retirement, come what may, even for future long-term care, for example? If so, gifts are a great way to reduce a future Inheritance Tax liability.

The laws dividing your assets if you don’t have a Will changed radically on 1 October 2014, although one of the most needed reforms has been put on the back-burner. Whilst partners in a marriage or civil partnership get a much-awaited improvement in their outcome, “common law” partners may be shocked to discover they still […]

Everyone, regardless of age, should have a Lasting Power of Attorney for Property & Financial Affairs (unless you already have a valid and adequate Enduring Power of Attorney) and for Health & Welfare.

Inheritance Tax is usually paid on an estate (all assets, less any liabilities) when somebody dies. It’s sometimes payable on trusts or gifts made during someone’s lifetime (but only to companies, not individuals).

Will your children’s inheritance finish up in the hands of a son or daughter-in-law you never really liked? Watch this interesting animation.

Balancing the risk you are willing to accept with the investment returns you need to meet your investment objectives will help determine which investments to choose.

My mailbox recently had the following question in it and I thought I should share my answer as it is a commonly recurring theme…

“My question is, no doubt, the most common one; should I put my 88 year old mother’s house (approx value £220,000) in our joint names; she has no savings? My mother was diagnosed with Alzheimer’s 5 years ago, but the illness is progressing slowly and she is unlikely to need care for 2/3 years. Would this fall under the ‘deprivation’ rule?”

My post box recently had the following question:

“My Wife will soon be going into permanent care. At present our home is in “Tenants in Common” format. At some stage in the future I will probably want to sell and move to a smaller property. Can the new property be held under “Tenants in Common”?”

My mail box recently had the following question in it regarding a “granny annexe” and I thought the answer would be of interest.

The question was on behalf a friend. The father, late 80s, with Alzheimer’s Disease has recently lost his wife. The family is considering the possibility of the father selling his house and using some of the money to build a granny annexe to the home of one of the children.

Here at Yorkshire Prestige Car Brokers we understand that for many people, especially those who are elderly or who have little knowledge of how the motor trade works, changing their car can be a stressful experience.

Brussels IV is the solution to the forced heirship provisions, which can currently thwart the best laid plans of British Will-makers. However, what many people are not aware of is that the new rules will only benefit those British nationals who have taken appropriate action during their lifetime by drafting a new Will.

Written under a simple family trust, the policy proceeds then cost-effectively compensates the beneficiaries for some or all of the IHT on death.

Unfortunately, whilst coping with the trauma of someone dying, there are some practical things you need to do. This article deals with the key elements. Registering the death It is a legal requirement that the death is registered as soon as possible, certainly within 5-days in England. You can find the local Register Office at this […]

Over a lifetime we spend our time working hard to provide for our loved ones and making a Will ensures that when you die your estate – property, possessions, savings and investments – are shared according to your wishes. A Will is important for everyone but even more so if you have children, own property, […]

Aspects of the Dilnot Commission are incorporated into the Care Act 2015, including a “cap” on care costs and an increase in the asset threshold. Will this help you? The Government’s “smoke and mirrors” approach to this is exposed!

Underpinning the funding elements of the Care Act 2014 are “Eligible Care Needs”, which are explored in this article.

In this article I introduce the Deferred Payment Scheme (“Equity Release” offered by the Local Authority in lieu of selling Granny’s home to pay for her care).