Wills, bills and tax liability

From Emma Raffan

Raffan Hawker Solicitors

I write with reference to you article 'Wealth Warning' in your first issue of Healthy, Wealthy & Wise. I would like, as a wills and probate solicitor, to fully endorse your recommendation that people should make a will.

However, I was somewhat concerned that you state "with careful financial planning you can substantially reduce or eliminate your childrens' inheritance tax liability". Children do not have a tax liability - the estate has a tax liability and for the estate to have a tax liability it must, as you stated, be in excess of £234,000 as at today's date. There are therefore sufficient assets (albeit possibly illiquid ones) to meet this tax bill. Please do not frighten people into believing that they could "leave (their) children with a hefty tax bill" unless they take some course of action. This is not the case. The estate bears the cost of inheritance tax not the children.