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DOMICILE TAXES & WILLS
"There is nothing so certain in this life as death and taxes"
The first is absolutely certain! The second is also certain but we have the opportunity to minimise the various taxes imposed under whichever jurisdiction we are governed at the time of death.
DOMICILE OF ORIGIN:
Everyone obtains a place of domicile at birth. If you were born in the UK, legally, you are UK domiciled. However, this is subject to 'domicile of dependency' which is attributable only to children under 16 years of age. The domicile of origin changes to a domicile of dependency when the domicile of the parent changes. In such a situation the domicile chosen by the parent becomes the domicile of the child.
There are many common misconceptions relating to making a Will:
"It is too expensive", everything I own will automatically pass to my spouse or
my children" or "my assets are too insignificant".
In the event of your unfortunate demise, without having made a Will the "Intestacy Rules" apply in a rather arbitrary manner, particularly if you do not have any children. This may lead to your loving and faithful spouse having to share your estate with "unseemly" relatives whom you certainly never intended
to benefit.
SUCCESSION TAXES:
UK Inheritance Tax ("IHT") is currently chargeable at 40% on the excess over the nil rate band allowance (currently 325,000 2009/10) on worldwide assets.
There are two rules by which a person may be deemed to be domiciled for IHT in the UK:
1. He or she was domiciled in the UK within 3 years immediately preceding the "relevant time"
OR:
2. He or she was resident in the UK in not less than 17 out of the 20 years of assessment in which the "relevant time" falls.
"The relevant time" is defined as the time at which the domicile is tested, for example, the date of death.
WILLS:
Do you have a valid UK Will?
To discuss making a will or for a revision our contact numbers and address details can be found using the link: - Contact us
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