Inheritance tax and Dorset Home Owners

Recently, local and national papers have reported the details of the Phizackerley case and its potentially disastrous effect on the workings of the nil rate band discretionary loan trust. This type of trust is being created by many Dorset homeowners within their Wills to legally mitigate their liability to Inheritance Tax (IHT). Many more people in Dorset are liable to IHT as a result of the sharp increase property prices in the area over the last few years.

Paul Solomons is a Partner at Frettens Solicitors and Head of the Private Client Department. Paul receives many enquiries from clients stating that they have read in the newspaper that this case could make the nil rate band Trust in their Will ineffective and enquiring about whether they should change their Will.

Paul comments “It is gratifying that my clients have taken on board the type of Trust that they entered into when we last changed their Wills. I am also pleased to confirm to them that in my original advice I tried to take into account the problem that has arisen in the Phizackerley case, and as such it should require few, if any, of our clients to change their Wills.”