Let’s start by saying that our position has always been, and remains, that it’s never wise to take tax planning steps that you wouldn’t otherwise consider on the back of rumour or double-guessing what changes might be made in an upcoming budget.
The UK government has confirmed that the amount a surviving spouse or civil partner is entitled to receive in England and Wales where a person dies intestate (without a valid will) leaving children will be increased. The statutory legacy will be increased by £20,000 from £250,000 to £270,000. The changes will come into force on 6 February 2020.
The will trust is enjoying a renaissance. The decision by increasing numbers of people to leave their estates by will in trust, rather than outright, is not the product of any tax changes; contrary to popular belief, tax considerations are rarely the main driver for setting up a trust.