Wealth Management Newsletter - Summer 2012

Latest news from the Wealth Management team
  
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Wealth Management Newsletter
July 2012
In this issue:
Solicitor's duty to give tax advice
Tax or no tax - second spouses and children
How to provide for pets in your will
Inheritance Tax: how the Revenue wins and the taxpayer loses
 

Few negligence claims are brought against solicitors for giving bad tax advice; the bigger risk is a claim that the solicitor failed to advise on the tax implications of a particular instruction at all. While solicitors may point to the paragraph in their terms of business that says their retainer doesn’t extend to giving tax advice unless specifically instructed (and paid) so to do, this won’t always let them off the hook.

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It is not unusual for there to be disagreements when an estate is divided up after a death, when emotions are running high. A particular difficulty can arise where an estate is divided between beneficiaries who are liable for Inheritance Tax (such as children) and beneficiaries who are not liable to tax, such as a spouse.

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What will happen to your pets when you die? The law treats pets as “chattels", a definition which includes horses and domestic animals. Pets can pass under a Will or on intestacy rules like any other assets, but this may carry unwanted consequences.

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Football managers say that the worst way to lose a game is by giving away a penalty. We can help you avoid paying a penalty charge to HM Revenue & Customs and save or mitigate Inheritance Tax in other ways, by adhering to time periods imposed by the Revenue. Our goal is to protect your estate.

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