Blended Families Inheritance Tax Risk

A report issued by Abrdn has highlighted the risk that blended families face as 47% of them are failing to discuss estate and inheritance planning.

What is a Blended Family?

This is where families come together on death, divorce, remarriage, new children, stepchildren and more.  It is often difficult to discuss arrangements if you move into your new partner’s home or vice versa or one comes into the relationship with different capital amounts or different numbers of children. 

Nearly half of blended families are failing to update wills or make allowances for changes in their circumstances.  Some may not even realise that when they remarry, their previous will is automatically invalid, and a new will needs to be made.

The Pitfalls that May Cause More Inheritance Tax

No new will made after a remarriage means you die intestate and intestacy rules on succession would take over on death.

• Intestate, Married with No Children i.e., surviving spouse inherits all, see No Will & Not Married
• Intestacy and Married with Children see: No Will Married, Children but the Statutory Limit has now changed see: Statutory Legacy

Risking the Loss of Residence Nil Rate Band – i.e., property ownership should pass to direct line children and stepchildren, but you need to amend your Will to do so.  See: RNB Trusts    

Unmarried Couples pay more property inheritance tax.  See: Unmarried Owners

Comment

Please do not leave this to chance, contact us about making a new Will.  Contact  Call Back  Calculators  Our Fees

What are the costs for our Will services?  Wills & Probate