Business expert answers will and probate question

A business expert has answered one person's wills and probate question.

Tricia Phillips, a business writer, responded to a reader who wrote to the Daily Mirror saying that they had inherited money from a parent during their retirement and had enough money to meet their needs.

They asked: "Would it be wise to gift money now to my three children and grandchildren in order to help them and to reduce inheritance tax?"

Ms Phillips said that it was a good idea to take a proactive approach to planning inheritance tax and said that in this case the reader would be wise to use the Deed of Variance rules.

They can change their father's will within two years of his passing, altering it so that either their children or grandchildren receive his assets, which means that the reader's own wealth will not be assessed.

Those who cannot take advantage of the Deed of Variance rules can still reduce their inheritance tax bill by making a will. This will mean that they do not die intestate, which would mean that the tax is paid when it does not have to be, George Bull, a partner at an accounting firm, told the Daily Telegraph.

Posted by Hannah Carr