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Inheritance plan changes 'may impact on people's wills'

Inheritance plan changes 'may impact on people's wills'

People who anticipated an outright parliamentary majority for the Conservative Party following the general election may have been expecting significant changes to inheritance tax rules.

The Tories had pledged to raise the point at which the levy kicks in to £1 million.

At present, the 40 per cent duty is payable on the value of estates worth more than £325,000.

Because the party did not achieve a majority and has had to team up with the Liberal Democrats in order to achieve power, it has had to scrap this proposal.

As part of a bargaining process, David Cameron has agreed to get rid of the goal of increasing the cut-off point for the tax.

This could mean that some people will be encouraged to change their plans regarding how they leave their estates in the event of their deaths.

In order to reduce the amount of money they pay to the Treasury, they may have to be more strategic with their wills.