As Newport's billion million pound makeover continues unabated and house prices steadily rise to reflect the revamp, the city's growing population of high net worth individuals should be mindful of the possibility of even greater exposure to inheritance tax. Research shows that 1 in 3 people in Wales do not have a will in place - and without an appropriate will many families, regardless of income, will struggle to protect their assets from the tax man. Claire Johnson, Head of Wills and Estates and partner at Leo Abse & Cohen, takes a closer look at how we can manage our money even after death.
"With the city's regeneration programme in full swing, it's no wonder that Newport's increasingly affluent population is becoming more mindful of greater exposure to inheritance tax as rising property prices push many estates above the £300,000 nil-rate band threshold.
"Yet research shows us that 1 in 3 people in Wales do not have a will in place and each year thousands die without making a will. Many are under the impression that they don't have anything of value to leave or that everything automatically goes to their spouse, unfortunately that is not the case.
"Current rules state that if an estate exceeds £300,000 the excess will in principle be liable for inheritance tax levied at 40%. This has to be paid before beneficiaries can receive their portion of any inheritance. But, with an expertly drafted will, couples can make sure that they use both of their 'nil rate tax bands' so that up to £600,000 can be passed free of inheritance tax on the death of a surviving spouse.
"When you consider the consequences of not making a will, you can see it's worth every penny. By making a will you can ensure that you and your family have peace of mind in knowing your hard earned and valued assets will be protected and passed to the beneficiaries of your choice - not the tax man."
Leo Abse & Cohen has offices in Newport, Cardiff and Swansea and offers legal advice to a broad range of private clients, companies and institutions.