A simple life?

KEY POINTS

• Need for comprehensive and holistic planning.
• Outline of non-tax factors.
• The future role of trusts.
• Importance of preserving all inheritance tax exemptions.

For many married couples (and civil partners) the inheritance tax (IHT) reforms announced by the Chancellor in the latest Pre-Budget Report might suggest a return to much simpler estate planning.

Most may envisage a will which merely leaves everything to the surviving spouse (including in this context a civil partner) on the first death in the knowledge perhaps in some circumstances mistaken of a 100% uplift to the survivor's nil-rate band (IHT exemption and for 2007-08 £300 000).

Although further guidance has recently been issued by HMRC all private client practitioners will now be aware of the legislation proposed in the Finance Bill 2008 allowing a claim for the...