Only Fools and Horses actor Roger Lloyd-Pack died last year but forgot to leave a Will, meaning a large amount of his £1.4m estate will go to the tax man.
The wonderfully iconic Trigger, loved by millions, and played by Lloyd-Pack, will always be remembered for forgetting Rodney’s name and calling him Dave. But sadly, like 70% of the UK adult population, Trigger also forgot to write a Will.
Due to the intestacy rules, his estate will be shared between his widow and his four children. This has resulted in thousands of pounds owed in inheritance tax. If he had written a Will he could have mitigated this.
Inheritance tax is paid when someone dies if their estate is worth over a certain amount. The amount payable comes out of the value of the estate. Spouses are exempt from inheritance tax so if your husband, wife or civil partner dies and you inherit their estate you do not pay anything.
Currently the Inheritance Tax threshold is £325,000 – anything above this amount is taxed at 40%, or 36% (if 10% or more of your estate is left to charity). But there are things that you can do to reduce the amount of tax payable on your death. Read our blog Top Tips for Reducing Your Inheritance Tax Liability to find out more.
It’s really important to write a comprehensive Will to make sure that you leave your estate to your loved ones in such a way that they don’t lose out. When you write a Will you can state how your money should be divided, and if done properly with expert advice, you can avoid your loved ones losing out by paying large sums in tax.
Making a Will is vitally important, no matter how large or small your estate. Getting it written by a legal professional means that there won’t be any confusion or misinterpretation after you’re gone.
If you would like more information or expert legal advice our expert teams of Wills and Probate lawyers at Slater and Gordon can help. Call us on freephone 0800 916 9055 or contact us online and we will call you.