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Should I review my Will?

View profile for Abbie Grinsell
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Yes, you should. We at Biscoes recommend you review your Will at least once a decade.

The law is ever-changing and growing to fit the needs of the public.

It is especially important to consider when we are on the cusp of an election and a new government could mean new tax rules are coming soon. 

For example:

Mr A made his Will in 1990 which created a discretionary trust of the Nil Rate Band (“NRB”) sum. The residue (everything else) was left to his wife.

The NRB is an inheritance tax exemption that every individual has. Everyone can leave a tax-free sum to their beneficiaries (as of 2024 this sum is £325,000).

Mr A’s Will was a tax-efficient move for the time as the gift to his spouse was spouse exempt and the trust would protect his NRB exemption.   

However, in 2007 the law changed. Individuals can now transfer any unused Nil Rate Band to a spouse/civil partner.

NRB discretionary trusts are now unnecessary to protect your NRB on the first death.

Trusts, while useful in some circumstances, cost money to set up. They may also require ongoing tax returns and other administrative costs.  

Mr A unfortunately died in 2024 without having changed his 1990 Will. Legally the NRB Discretionary trust in his Will therefore either needs to be set up or wound down.

The family would prefer it was wound down as they don’t want the expense. By appointing it out to Mrs A we can still save the NRB without needing to set up a trust. However, this will cost her significantly more in legal fees than it would have cost Mr A to simply review and amend his Will.

Many unregulated Will Writers are still putting NRB Discretionary trusts in Wills for married couples. We see many such Wills, usually after the death of the first spouse, that then need to be appointed out to get rid of the trust.

In conclusion a review of your Will at frequent intervals is always a good idea. Even if all you get is a confirmation that it is still ok – at least you will have peace of mind.

We are currently offering 15% off new Wills and Lasting Powers of Attorney. Offer ends 31st August 2024.

If you require any advice in relation to any of the information outlined above, please telephone or email our Inheritance Protection team on 02392 660261 or IPT@biscoes-law.co.uk