The Business Exchange Swindon & Wiltshire Edition 48: April/May 2020 | Page 34

Estates Planning with Amy Tuson
Amy is a Trainee Solicitor at the Swindon branch of Bower Bailey Solicitors.
Since beginning her training she has gained experience in a number
of legal disciplines and is currently working in the Private Client, Wills
and Estates Team. We asked Amy for the answers to some often asked
questions relating to Estates Planning.
Is there such a thing as a
‘common law’ marriage?
your estate, an additional allowance of £175,000
can be claimed if you owned property during your
lifetime and your estate is left to your children or
grandchildren. This means the value of your estate
which is exempt from inheritance can increase to
£500,000. Also please note that spouses benefit
from spousal exemption, so anything you leave
to your spouse is exempt of inheritance tax. The
estate of the surviving spouse may be able to
claim any unused Nil Rate Band and RNRB of the
first spouse to die so a total tax free allowance of
£1,000,000 may be available per couple.
There is no such thing in England and Wales, so
if you live with a partner but aren’t married and
don’t have a will, you will die intestate. Under the
intestacy rules your estate would pass to your
children or closest living relative. Your partner
would not receive anything automatically but
could make a claim against your estate under the
Inheritance (Provision for Family and Dependants)
Act 1975 if they can show that they were
dependent on you.
Are there tax savings to be had if you
donate money to charity in your Will?
How do I ensure my kids from a
previous relationship inherit my
property?
Gifts to charities are exempt from inheritance tax.
In addition a reduced rate of inheritance tax (36
per cent) may be available if you gift at least 10
per cent of the net value of your estate, after all
other reliefs and exemptions have been taken into
account, to a charity.
If you would like to ensure that your property
or a share of your property would pass to your
children, you could set up a life interest trust. This
allows your partner to live in your property until a
triggering event occurs (e.g. death or re-marriage)
but safeguards your share of your property for
your children. Your property or share of your
property is then held on trust for your children
until the triggering event occurs, the house is then
sold and your children would then receive your
share of the proceeds.
Are there any ‘trends’ in the provision
people are making in their Wills at
the moment?
I would not say “trends” but with the increasing
number of second (blended) families more people
are choosing to incorporate life interest trusts into
their Wills.
How much can my relatives inherit
without paying tax?
When do you think someone should
consider drafting a Will?
Each person in England and Wales has a ‘Nil Rate
Band’ of £325,000. This means the first £325,000
of the value of their estate is exempt from
inheritance tax, but tax is payable at 40 per cent of
the value over and above this threshold. However
a relatively new allowance has been introduced
known as the ‘Residence Nil Rate Band’ (‘RNRB’).
In simple terms, depending upon the value of
I think everyone who owns property and/or other
assets, is married or living with a partner, or is a
parent should draft a Will. My reason for this is
Wills enable you to have peace of mind; you can
appoint guardians to look after your children and
ensure your loved ones are financially secure in
the event of your death.
Are you involved in
‘Make a Will Month’?
I will be coordinating Make a Will Month for
Bower Bailey in October this year, with all profits
going to Prospect Foundation as it is a wonderful
local charity. I really enjoyed working with them
in 2019 and raised just under £2,000 which we
hope to beat in 2020. Along with Make a Will
Month I also have talks arranged with the Citizens
Advice Bureau and Swindon Special Educational
Needs and Disability Families Voice to provide
information on Wills and Lasting Powers of
Attorney to the local community.
I hear you like a challenge! Are you
training for anything at the moment?
I love hiking. I am from the Brecon Beacons in
Wales and one could say it is in my blood. I have
previously completed challenges such as the
Snowdon Push in the past so, yes, I intend to climb
Ben Nevis towards the end of this year.
When do you finish your legal training
and what are you looking forward to
in 2020?
I finish my legal training in November 2020 and I
would like to qualify into our Private Client team.
I am looking forward to celebrating 35 years of
Bower Bailey in Swindon with my colleagues at
Newbury races in the summer.
atuson@bowerbailey. co.uk
01793 610466
@BowerBailey
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