Article provided by TLA

21 January 2010

AXA Wealth International has warned that inheritance tax reforms implemented by the Finance Act 2008 only apply to married couples and not their family members. 

Families are also advised not to underestimate the importance of inheritance tax planning, which involves reducing the value of a person's estate to avoid large payments of Inheritance Tax.

Representatives for AXA Wealth International highlight that changes made do not cover all possible inheritance tax scenarios.  The implementation of this Act now means that surviving spouses and civil partners could benefit from a nil-rate band allowance of up to £650,000 on inheritance immediately following the death of their partner.

However, this transferable nil-rate does not apply to unmarried couples.  Kevin Dean, Chief Operating Officer of the wealth management organisation has stated: "Couples who live together - even if they have children together - or family members living in the same property are not covered by this legislation and therefore will not be covered."

Inheritance Tax advisors are told to study the legislation and remember that individual cases will differ greatly.

Dean also urges people to plan for inheritance tax, particularly when considering the amount of paperwork that needs to be completed after the loss of a loved one.

For more information on this topic contact our team of experienced solicitors.