Today, the UK goes to the polls to determine who should govern the region and, as a result, it would be true to say that the results of the General Election will impact upon all aspects of society, including Estate Planning in Chelmsford and throughout the rest of the UK. Laura Richardson provides an account of how political parties in the UK plan to deal with matters of inheritance tax and probate with a view to recognising how this may impact upon Estate Planning in Chelmsford . . .

With so many policies, pledges and promises to sift through, it can be challenging to decipher exactly how the proposals of each of the political parties will affect individuals in Chelmsford and surrounding areas. We at Andrew Douglas Wills and Legal Services have put together some brief information regarding how each of the political parties’ intentions will affect our clients individually, particularly with regard to Inheritance Tax and Probate fees.

Inheritance Tax

The Conservative party brought some favourable changes to the Inheritance Tax threshold earlier this year. Previously estates worth less than £325,000 did not have to pay Inheritance Tax, however as of April 2017, the Conservative party raised this threshold to £425,000. There are some terms that apply, including the fact that the family home is required to be passed down to the children, step-children, adopted children or grandchildren of the family in order to qualify for the raised threshold. However this change means that there are fewer estates that will levy the 40% Inheritance Tax charge, saving many Essex families at least £40,000. In both the Labour and Liberal Democrat Manifestos, there are plans to reverse this change, dropping the threshold back down to £325,000. Whether further cuts to the threshold would be announced at a later date is not clear, however what this does mean is that there will be a 40% Inheritance Tax payable on many more estates across Chelmsford, Essex and the UK! Conversely, UKIP have pledged to increase the Inheritance Tax threshold to £500,000 per individual, which can be transferred for married couples, or those in civil partnerships, thereby allowing up to £1 million in total. Furthermore UKIP have proposed scrapping Inheritance Tax altogether in the future!

Probate Fees

The Conservative party were in the process of putting through changes to raise Probate fees from around £155/£215 to up to £20,000 by introducing a sliding scale of charges based on the estate worth, replacing  the current flat fees. However, this is currently on hold until after the General Election. There is also a large faction of opposition to the proposal based on the legality of the changes, meaning that it may not make it through the Parliamentary process at all.

With all of these potential changes, it can be difficult to assess whether, as an individual in Chelmsford, it is necessary to readdress any estate planning, or amend your Will. We at Andrew Douglas Wills and Legal Services, are able to quickly assess the potential impact of each proposal, and advise you of whether any changes would be required in order to best protect your loved ones after your death.

Contact Andrew Douglas Wills and Legal Services today via www.andrewdouglaswills.co.uk to see how we can assist you further with your Estate Planning in Chelmsford.

If you would like to keep up with our latest posts and advice about estate planning through the regular advice that we provide to our clients in this regard, then please also feel free to –

Follow us on Twitter at https://twitter.com/ADouglasWills.
Follow us on Facebook at https://www.facebook.com/AndrewDouglasWills.
Follow us on Google+ at https://plus.google.com/b/117915389310253337582/+AndrewdouglaswillsCoUk/posts.