Inheritance Tax: Covid Wills and Nursing Home Problems Force Families to Go to Court | Personal Finances | Finance
When the IHT is billed, it is paid at 40 percent on the portions of the estate valued above the Â£ 325,000 threshold. Having a will in place can ensure that there is no confusion in how an estate is handled after someone dies and without a will, in rare cases an estate can end up in the hands. of the Crown.
As the coronavirus emerged, it forced many people to value their real estate affairs, especially since older people were at greater risk of contracting the virus. Unfortunately, while the pandemic sparked effective planning, it also made it difficult to manage some strict rules.
Debra Burton, partner at Lime Solicitors, explained, âSo-called ‘Covid wills’ have led to an increase in will challenges.
“The rules on how to write a will are complicated for laymen to understand, especially when it comes to testifying. Locking in has made the problem worse as it could be very difficult to find one witness, let alone two. There are also still a lot of myths surrounding Wills, especially online, for example wills can be signed electronically (they cannot – this always requires a wet signature) or only one witness is now required.
âDisgruntled beneficiaries are now focusing more on how the will was observed and testing witness evidence where previously they might not have been concerned if it looked good at first glance. Contesting a will based on a lack of appropriate testimony may be an easier (and therefore cheaper) claim to make than a claim based on a lack of testamentary capacity, for example. There is no need for expert evidence or judicial discretion if the witness’s evidence is clear. Either the will was attested correctly – so it is valid or it was not – so it fails. It’s very black and white. “
READ MORE: 60-year-old woman at risk of losing her home due to cut in universal credit