- Sometimes it needs more than one Will and more than one way
Sometimes it needs more than one Will and more than one way
Sometimes it needs more than one Will and more than one way20th July 2022 - Published by Kuits Tax Team
Having worked hard to build up your wealth, trying to decide what the best thing to do when you die can be a difficult and complex matter.
You may own assets in multiple jurisdictions. You’ll want to ensure they are effectively dealt with by appropriate Wills, that work together, to achieve your overall intentions on how your estate should pass when you’ve gone.
You will be keen to minimise your estate’s tax exposure upon death, in order to maximise what can be made available to the beneficiaries of your estate and ensure that tax isn’t paid on the same asset in more than one jurisdiction.
You might have concerns over affording some protection to beneficiaries of your estate who are currently children or vulnerable. They could need time to learn how to manage the wealth that will ultimately be made available to them. It could be a comfort to build into the Will safeguards that afford some protection to the wealth, in the event a beneficiary were to experience financial or matrimonial issues in the future.
In the case of second marriages, where both parties have children from a previous relationship, we often see a desire to adequately support and protect a surviving partner during their lifetime. But ultimately, on the death of the surviving partner, there can be an intention for the estate to pass to one’s own children, rather than in accordance with the Will of the surviving partner, potentially leaving the children without benefit.
Mrs A has an estate worth approximately £40m. Her assets are spread across 4 different countries, including the UK. Whilst she was born in the UK, she has lived outside of the UK for several years. Mrs A is not married and she has 3 minor children. She has a long-term partner, who is financially dependent upon her.
We are working with Mrs A’s advisors in the foreign jurisdictions to ensure each of her 4 Wills (one of which is the UK Will that we are preparing) reflect her overall intentions for benefitting her family and her favoured charities. It is important to Mrs A that sufficient provision is made for her Partner, but that the majority of the wealth is to pass to benefit her children.
We are looking to build into the Will adequate control and protection measures in the event Mrs A were to die whilst the children were still young. It is also necessary to advise around potential claims that can be made against her estate in the event ‘reasonable financial provision’ is not made for those who may be regarded as financially dependent upon her.
We are simultaneously advising Mrs A on her likely domicile status, and how to strengthen that claim, which will have a significant impact on her estate’s UK Inheritance Tax liability.
We’re not just looking at what will happen when she’s gone. We’re also considering what steps can be taken now, in order to minimise the tax Mrs A pays now as well as her UK Inheritance Tax exposure.
These are the kind of issues we navigate our clients through with great care and attention to the detail. If you would like to speak to one of the team to discuss your individual situation, please use call us on 0161 832 3434 or email firstname.lastname@example.org.