Is Your Will Up To Date?
As the new Residence Nil Rate Band (RNRB) came into effect on 6th April 2017, you may wish to review your current Will.
The RNRB means that an additional £100,000 tax free allowance will apply to estates in which a residence of the deceased is passing to their lineal descendant(s). The amount of RNRB is due to increase annually until 2020/2021; at which point the amount of RNRB available will be £175,000. As a result, based on today’s Nil Rate Band (NRB) allowance of £325,000, every person who qualifies for the additional RNRB in 2020 will be able to pass up to £500,000 before they pay inheritance tax.
Since 2008, spouses have been able to transfer any unused NRB to their surviving spouse. Therefore, as a result of the additional RNRB, in 2020 a surviving spouse could potentially pass £1,000,000 before any inheritance tax is due. However, if your Will was prepared before 2008, you should consider reviewing it to check that it does not prevent you from benefiting from the new RNRB should you wish to do so.
Should you wish to discuss your Will then please contact Charlotte Isherwood on 01606 872200 or by e-mail to firstname.lastname@example.org to arrange an appointment.