TIME TO REVIEW YOUR ESTATE AND POTENTIAL GIFTS
TIME TO REVIEW YOUR ESTATE AND POTENTIAL GIFTS

31 March 2020

One of the consequences of the Coronavirus (COVID-19) pandemic is the substantial negative effect on equity values.

Since the beginning of January this year to March 23, stocks in the FTSE100 have fallen by around 35%.

We are not pretending this is good news, but if your estate is facing an Inheritance Tax liability, now could be the time for a review.

If you want to give away assets to your children, family members or friends in your lifetime, we would normally advise you, if possible, to give away assets that don’t incur capital gains tax and which might go up in value after the gift has been made. That happens when a subsequent gain in value belongs to the recipient and not to your estate.

So, now maybe is the time to make those gifts.  You could pass on shares that have dropped in value and when stock markets recover the bounce back will all belong to your recipients of the gifts. For tax purposes you will have made a lower value gift – but potentially of something that will grow.

You need to remember that gifts are disposals for Capital Gains Tax purposes, but if you are giving away assets that have gone down in value there is less gain to be taxed.

To find out more please contact Lucy Watson, who is the head of the Wills and Probate team at Phillips Solicitors incorporating Brain Chase Coles on 01256 854646 or by emailing [email protected]

During these difficult times our Town Gate office in Basingstoke is temporarily closed to visitors unless by prior appointment when meeting in person is essential. However, thanks to our lawyers being able to work remotely, Phillips remains fully open for business and can discuss Wills and Probate issues or any other legal matters by telephone and video conference.

 

Disclaimer

This article is current at the date of publication set out above and is for reference purposes only. It does not constitute legal advice and should not be relied on as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.

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