Landlords are a money conscious group always looking to minimise the amount of tax they pay – but along with one in four aged 55 or over, they have missed the obvious tax saver, according to wealth managers.
Making a will is inexpensive and lays the foundation for saving inheritance tax when leaving rented homes to loved ones.
Most people say they have no will simply because they have never set aside the time to visit a lawyer or they find the thought too morbid.
However, Ian Dyall, head of estate planning at wealth managers Tilney explains the four main reasons for having a will:
- Telling your loved ones what to do with your property, money and possessions once you have passed on
- Creating a lasting power of attorney to make decisions about your wealth if you cannot do so yourself due to illness or poor mental health
- Setting up a strategy for passing wealth and property between generations
- Avoiding an unnecessarily large inheritance bill with estate planning
- Arranging for someone to look after any children less than 18 years old
- Appointing a trusted person to act as executor to administer the estate
“There seems to be the perception that your estate will automatically go to whom you want upon your death. This is far from the truth,” said Dyall.
“A worrying number of people have not made a will seemingly out of pure apathy and even when they have one, many do not review these regularly.
“If you do not leave a will, you simply leave problems for your loved ones including delays and confusion as to where you want your money to go and potentially someone who you would not wish to receive your assets will land a windfall.”