October 9, 2024
Martin Lewis urges Brits to take ‘crucial’ inheritance tax step to save ‘hundreds’ | Personal Finance | Finance #UKFinance

Martin Lewis urges Brits to take ‘crucial’ inheritance tax step to save ‘hundreds’ | Personal Finance | Finance #UKFinance

CashNews.co

Martin Lewis is urging people to take the steps to create a will while they can get it for “free or cheap” this month.

A will is a key part of inheritance tax planning, as it allows people to choose how and who they distribute their assets to, in a way that can reduce the tax paid on their estate when they die.

However, research by Canada Life earlier this year found that 33 percent of UK adults aged 55 or over have not made a will yet. Frozen thresholds and soaring inflation are dragging more estates into the 40 percent inheritance tax bracket, making now a crucial time to consider the move.

In the latest Money Saving Expert (MSE) newsletter, Mr Lewis wrote: “Sorting a will is crucial if you’ve got a house, savings, a business, or people you’d like to look after when you’re gone.

“It means you get to decide who gets what. Without one, rigid intestacy rules dictate it and you don’t have a say. Plus as solicitors tell us, die will-less and it may complicate dealing with the estate.”

Mr Lewis noted that, while the will’s “gold standard” is for a solicitor to draft it, which normally costs hundreds of pounds, there are currently two charity schemes that provide them “for cheap or free” this month.

Free Wills Month for those aged 55 and over takes place in October and March and offers help to residents in different locations in the UK depending on the month.

In October, locations cover the likes of Liverpool, Manchester, Belfast, Birmingham, Bristol, Cardiff, Newcastle, Swansea and more.

Mr Lewis added: “If it’s not on in your area now, the likelihood is that it will be in March.”

Explaining the support on offer, Mr Lewis wrote: “A solicitor will draft the will for free. It covers a single will for anyone aged 55+, or a ‘mirror will’ for couples where the wills are near-identical, as long as one is 55+.” (sic)

People need to book an appointment by the end of October, though the appointment can take place after that.

Mr Lewis continued: “It’s organised on behalf of Age UK, Alzheimer’s Research, British Heart Foundation, Marie Curie, Mind, Samaritans and more, in the hope you’ll leave a bequest (money in your will) of typically £300 to £500. It’s not compulsory, but it is a charity scheme, so do it if you can.”

Those younger than 55 can still have access to free wills. According to the Money Saving Expert, people aged 18 and over can book now for NoveMber’s Will Aid month.

He explained: “Will Aid is a bigger scheme. It runs across the UK and is open to all adults. Here you’re asked to make a suggested donation to charity for the will.”

A single will has a suggested donation of £100, while a mirror will has a suggested donation of £180.

Mr Lewis continued: “The donation’s spread across seven charities: Age UK, British Red Cross, Christian Aid, NSPCC, Save the Children, SCIAF & Trocaire.

“If you can’t afford it, you can give less, but please don’t game it. Will Aid is already open for bookings, which must be made by the end of Nov (but go sooner, as it books out), though the appointments can take place after that.

“Solicitors will often store your will in a safe place for free – if you’re using one of these schemes, check if that’s an option. You can also store it at home in a safe place.”

Mr Lewis added: “Already got a will? Check it’s up to date, especially if you’ve married since. An out-of-date will is almost as bad as no will. It’s important to note that in England, Wales and Northern Ireland (not Scotland), wills are often revoked when you get married, so you’ll need a new one.”

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