Some advice for potential executors to share with elderly relatives!

At Probaters we often hear executors bemoaning the fact that the person whose estate they are dealing with could have done more to save inheritance tax.  Usually of course it is by then too late to do anything about.   Occasionally a deed of variation might help.

For those of you who are potential executors, here is some advice which you might want to share with elderly relatives!

The team includes solicitors, accountants, and probate administrators. Take full advantage of the rules on gifts. If you can afford to give away substantial sums then do so. As long as you live 7 years the cash will not be included in your estate. Remember that the 7 year condition does not apply to the annual exemption. Anyone can give away £3,000 per year with a carry over for any allowance not used in the previous year. Therefore a couple are able to give away £6,000 every year. If your income is substantial then you can give away as much as you like from your income as long as it does not affect your living standards. Don’t forget pensions. If you have a pension fund which is producing your retirement income try to keep the capital intact so that it passes to your beneficiaries without inheritance tax. AIM shares – your financial adviser will be able to tell you which ones quality for inheritance tax relief provided that you have held them for at least 2 years.

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