Now, more than ever, it’s crucial to have a Will that’s aligned with your wishes, especially if you own agricultural property, a family business, or other qualifying assets. The changes to APR and BPR relief means that even if you already have a Will, it might be time for a rethink. Let me go into further detail as to why:
Will for Self Employed: If You Don’t Have a Will — Make One!
If you don’t already have a Will in place, avoid putting it off any longer. Not only will this document give you peace of mind, but it will help prevent unnecessary disputes or delays after you pass away. For unmarried couples or blended families, having a Will is even more essential. Without one, the intestacy rules could lead to your assets being distributed in a way that you didn’t intend, potentially causing unnecessary family conflict.
Reconsider Mirror Wills
If you’re a business owner or farmer, traditional mirror Wills (where everything is left to the surviving spouse) might no longer be the most tax-efficient way forward. The new rules make it clear that the £1 million BPR 100 % relief is not transferrable between spouses. This could mean that leaving everything to your spouse may result in the first spouse to die losing out on the full benefit of this valuable relief.
You might want to consider leaving BPR-qualifying assets (up to the £1 million band) directly to your children, or put them into a trust that your spouse can benefit from. This could help reduce IHT liabilities and ensure more of the estate stays within the family, tax-efficiently. Again, it’s important to weigh up the pros and cons with a qualified accountant.
Express Your Wishes
You want to be sure that your Will still reflects your wishes, and that your estate planning accounts for the new tax rules. The last thing you want is to have assets tied up in trusts or properties that don’t benefit from the tax reliefs available or worse, miss out on opportunities to reduce IHT altogether.
Self Employed Will: Consider the Future — Lasting Power of Attorney
A Lasting Power of Attorney (LPA) gives you peace of mind, knowing that if you become unable to make decisions for yourself, trusted individuals can act on your behalf. It’s a good idea to register an LPA now, even if you don’t need it immediately. This ensures that your wishes are followed in the event of reduced capacity, and it provides an added layer of protection for your loved ones.
What’s Next?
By taking action now, you can make sure that your assets are structured and take full advantage of the new tax rules. Whether you need to update your Will, adjust your trust arrangements, or start thinking about LPAs, there’s no time like the present!
Look after your loved ones, and let’s review your Will today.
