Royle Family creator and star Caroline Aherne, who sadly lost her battle with cancer earlier this year, was yet another public figure to die recently without a Will. It has this week been revealed that her £504,000 estate has passed to her mother Maureen, who is her next of kin, and who now faces paying an Inheritance Tax bill of over £70,000. Unfortunately, as this money may well have bolstered whatever assets Maureen already has to well over the Inheritance Tax bracket of £325,000, the likelihood is that when she eventually passes away, this money will be subjected to another sizeable Inheritance Tax payment.
For someone in Caroline’s position, who tragically knew her time was limited, a bit of forward planning would have allowed more of her legacy to stay with the people she loved, rather than the tax man.
If she had made a Will, she could have protected the money with a discretionary trust, that would have allowed her Mother (or any other chosen beneficiaries) as much of the funds as she needed during her lifetime, without losing so much of it to HMRC – twice! And after her Mother’s death, the remaining money would have been distributed according to Caroline’s wishes.
Taking tax planning advice and drawing up a Will to suit your circumstances is crucial to avoid a situation like this – and can prevent your finances and those of your loved ones ending up in a right ‘Royle’ mess.
If you have any questions or concerns about writing a Will then let me know at timesquestions@anvoner.co.uk and I will do my best to put your mind at rest.
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