Probate matters answered

One individual has written to the Express with a wills and probate question and had it answered by an expert on financial matters.

A reader told the news source that they were named as their husband's only beneficiary when he passed away in 2005.

The reader said that, on the advice of their solicitor, they used a deed of variation, so that the will could be altered to also benefit the couple's daughter.

"Does this now bar me from using my husband’s inheritance tax (IHT) allowance?", the reader asked.

Steve Laird, an independent financial adviser, responded that couples who leave their assets to one another effectively have their inheritance tax (IHT) allowance doubled, as since 2007 the second partner in a civil partnership or couple to pass away has been allowed to use what is left of their late loved one's allowance.

In the case of the reader, they may be able to have any remaining IHT allowance left transferred to them if the amount they gave to their daughter fell below the IHT allowance when their husband passed away.

Furthermore, Neil Edwards, a specialist in tax solutions, told Ftadviser.com that parents should undertake IHT planning.

Published by Phil Hammond