Million pound homeowners should revisit their will warn solicitors

Tens of thousands of homeowners should review their wills following the inheritance tax (IHT) threshold increase announced on Wednesday.

The changes will mean many are able to pass on £1million to their children without having to pay the punishing 40 per cent tax.

The change to the law will introduce an additional £350,000 home allowance to the current £650,000 allowance enjoyed by married couples,

This means as well as being able to pass on £650,000 tax free to descendants, if your home is sold for £350,000 or less after your death, your surviving relatives will pay no inheritance tax on the sale.

However, there is concern that if family members need to sell a property to pay for the care of an ailing relative then they will lose the £350,000 entitlement.

Gary Rycroft, solicitor and a member of the Law Society Wills and Equity Committee says if you think the changes will impact your final wishes, seek advice.

"I have many clients who would be affected by this. If some of the value of some of the capital in the family home has been taken out under an Equity Release Scheme, the full benefit of the proposed new IHT allowance may not be available," he said.

"One pitfall is if the family home has been sold to pay for care home fees, the proposed allowance may not be able to be used.

"Even if it's just for reassurance, give your solicitor a call and talk it over with them. Thousands of people will be affected by this change and will need to re-structure their wills to make the most of IHT.

"Now is certainly not the time to rely on a DIY will-pack or something written by an unqualified individual."

Andrew Caplen, Law Society president, said:

"Unfortunately, the growth of unregulated and do-it-yourself legal services means consumers are exposed to non-professional advice, which can be more of a hindrance than a help.

"A poorly drafted will, for example, can often be worse than having no will at all - as at least then your estate would be protected by intestacy rules."

To Find a Solicitor visit:http://solicitors.lawsociety.org.uk/or search: 'Find a Solicitor' online.

For radio and television newsrooms:

Gary Rycroft, a wills and probate solicitor, and a member of the Law Society's Wills and Equities Committee is available to talk about the impact of the IHT changes.

If you would like to arrange an interview with Gary he can be contacted on 0771 705 8374.

Alternatively please contact Chris Sealey on 07786 512 833, who will be able to help arrange an interview.