LEGAL SERVICES FOR YOU                                                          November 2024 | AshtonsLegal.co.uk

Private Client Insights

Welcome to our 'Private Client Insights' newsletter! This issue offers updates on the Autumn Budget, Nuptial agreements, French Wills and advice on what to do when someone dies. We also introduce you to a member of our team, Grace Canham.

How will the Autumn 2024 Budget affect your taxes?

Chancellor Rachel Reeves confirmed changes to Inheritance Tax (IHT) and Capital Gains Tax (CGT) in the budget as part of her tax rise package, which aims to raise £40bn.

What changes are coming?

• Individual IHT allowances: These were due to remain frozen at £325,000 until 2028; however, this has been extended to 2030.
• Agricultural Property Relief (APR) and Business Property Relief (BPR): APR and BPR will change from April 2026. If you believe your estate would benefit from APR and BPR and you are concerned about these changes, please contact us.
• Pensions: Currently, pensions can be passed free of IHT on death. However, from 6 April 2027, any unused pension funds and death benefits payable on the death of an individual will fall into their estate for IHT purposes. As such, the value will be considered when calculating the value of the estate and the IHT payable.
• Capital Gains Tax: CGT has increased with immediate effect to 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers. CGT on residential property, however, remains unchanged.

Don't hesitate to get in touch with one of our skilled and empathetic team today for a chat and guidance on your specific circumstances to enable us to tailor our advice to you. We can help you as and when you need and guide you along the way. Otherwise, we can deal with every aspect of estate planning and administration from start to finish, taking the burden away from you. This also means you have the peace of mind that everything is done correctly and efficiently.

Pre-nuptial agreements & Post-nuptial agreements

The topic of ‘Should we get a Pre-nup’ can sometimes be quite an upsetting thing to consider for some couples, as ultimately, you are creating a plan of what would happen if your relationship were to cease. However, it is something that is important to consider and is becoming increasingly popular.

A Nuptial agreement is an agreement entered into with either your spouse or fiancé before or during marriage. A Pre-nuptial agreement is made before marriage and in contemplation of marriage, whereas a post-nuptial agreement is made after marriage.

Such an agreement outlines what should happen to your assets in the event that your marriage or civil partnership were to end, and sets out how a financial settlement is to be achieved in the event of divorce or dissolution. They can record how a couple’s assets are to be held and/or dealt with whilst they are married.

What are the benefits of a Pre-nuptial / Post-nuptial agreement?

Revocation of French Wills

Question: I am selling my French house and moving back to the UK. I am wondering how to ‘cancel’ my French Will as this mentions the house and some other items. I think I no longer need a French Will.

In general, when we answer questions concerning Wills, these cover how to prepare them to ensure that they are valid and suitable. However, it is equally important to understand how to revoke a Will properly, should that be the intention.

It is not necessarily enough to conclude that the sale of your house in France would result in the French Will becoming ‘redundant’. When advising clients on Will preparation, one of the common points of discussion is whether it would be preferable to prepare a separate Will for each jurisdiction or whether one Will should cover their worldwide estate.

It follows from this, of course, that a French Will can be valid and apply to assets in the UK, and vice versa.

The easiest – and clearest – way to ensure correct revocation is to update your English Will so that it expressly revokes the previous French Will.

Errors in Wills – Yes, they really happen!

In the recent case of Angelova -v- Kershaw & Clark [2024] EWHC 1830 (Ch), the High Court ordered the rectification of a deceased person’s Will after it was found “beyond doubt” that the Will draftsperson had made a clerical error and “failed to transpose” the Will instructions received.

Upon her fiancé’s death, Ms Angelova discovered she was not one of the class of beneficiaries under a discretionary trust which formed part of her fiancé’s estate under the terms of his Will. Ms Angelova argued that this did not reflect her fiancé’s final wishes or what he had eventually instructed the Will draftsperson to do after a number of amendments were sought during the Will-making process. Having reviewed the related Will file, the High Court found that a table had been produced by Ms Angelova’s fiancé, which clearly stated she should be a beneficiary of the discretionary trust whether or not they were married at the time of death.

Had the Will draftsperson included the above information within the Will, Ms Angelova would have automatically been included in the class of beneficiaries upon her fiancé’s death, and the assistance of the court would not have been required.

Accordingly, the High Court made an order rectifying the Will in favour of Ms Angelova.

What to do if a loved one dies

There are no two ways about it; when someone dies there is a lot to be done. The first things one might think about would be registering the death, organising the funeral, identifying all assets and liabilities that person had and making sure all assets are secure.

If the deceased had a Will, it needs to be located. If they didn’t, the estate will need to be dealt with in accordance with strict rules set down by the government, known as the Rules of Intestacy.

If there is a Will it is likely to name an Executor/s. This is the person/s responsible for dealing with all aspects of the estate. If there is no Will, then the Rules of Intestacy set out who can take on the equivalent role, known as an Administrator. Executors and Administrators are both otherwise known as Personal Representatives.

Getting a Grant of Probate means gathering details of all assets and liabilities, obtaining specific and relevant details needed to calculate if Inheritance Tax is payable, then making a tax declaration to H M Revenue & Customs and a court application to the Probate Registry. Be careful! Just because there may be no Inheritance Tax to pay doesn’t mean a Grant of Probate isn’t needed. An estate always has to be dealt with according to the terms of the Will or the Rules of Intestacy.

Please remember that Ashtons Legal is available to assist you and your business with our full range of business, individual and injury law services including commercial and residential property, corporate advice, dispute resolution, family law, estate planning, personal injury and medical negligence. 

We Can Help You

For specific advice for you, your family or your business, please get in touch with us by calling 0333 034 8469 or email enquiry@ashtonslegal.co.uk.

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