COMPETITION

Competition Time!

So, in case you have been living under a rock over the last couple of days (or maybe you just haven’t caught up on social media just yet!) you will all know about our COMPETITION…

 

First things first, THE PRIZES:

 

  • 9-nights in SOUTH AFRICA for 2 people sharing (including a SAFARI)
  • FOUR Lasting Powers of Attorney for TWO PEOPLE
  • Official Rubik’s merchandise

Now, how do you win it…

  • 12 Days (1 – 12 April 2019)
  • 10 Questions (announced on Facebook @TotalLegacyCare)
  • 10 Answers

Simple right?

We will be sharing a link on our Facebook page – www.facebook.com/TotalLegacyCare – later this week to get your hands on the answer sheet and more details on the entry details and the all important terms and conditions!

So, head over to our Facebook page, like the page and await the details.

GOOD LUCK!!

Total Legacy Care

Cryptoassets: Should I include them in my Will and is Inheritance Tax payable?

Cryptoassets: Should I include them in my Will and is Inheritance Tax payable?

With a rise in cryptoassets and their prevalence in modern day society it is important to consider whether these should be included within a Will and perhaps more importantly how they will be valued for tax purposes upon death…

So perhaps a good place to start is actually defining what a cryptoasset is…

Many of us have heard of ‘Bitcoin’ after it becoming popular in the News headlines of late and ‘Bitcoin’ is a type of cryptocurrency, or cryptoasset and represent digital assets that an individual has legal rights over (meaning that they can transfer ownership, store it or trade it).

Cryptoassets are split into three categories:

  • Exchange Tokens (including cryptocurrency such as Bitcoin);

These can be used as a method of payment but typically there is no person, group or asset underpinning these and so their value is used for exchange or investment.

  • Utility Tokens;

These are provided by a particular business, or group of businesses, to provide the holder/owner with access to goods or services that they provide.

  • Security Tokens

These are provided by businesses as a form of share or credit due to the holder by

that business.

HMRC has specifically, and categorically, stated that cryptoassets are not viewed as currency or money, so that means there is no cash value and they are exempt from Inheritance Tax and indeed any other taxes, right? Sorry, WRONG!

The liability for tax will depend on the type of cryptoasset and the use of the asset.

Cryptoassets will attract Capital Gains Tax when they are disposed of (sold, exchanged, used to buy other goods or services or given away/transferred to someone else), much like any other asset that is disposed of by an individual. Other taxes may also apply to cryptoassets depending on how they are used, however, we will only be focussing on Inheritance Tax here.

HMRC make it clear that the onus is on the individual, and no other third party/issuer or otherwise to keep records of their cryptoasset transactions and this should include:

  • the category of cryptoasset;
  • the date of the transaction;
  • if the individual bought or sold the cryptoasset;
  • the number of cryptoassets;
  • the value of the transaction in GBP (£) – even where there is no pound sterling value an appropriate exchange rate must be calculated and records should be kept of the valuation method;
  • the cumulative total of the investment in cryptoassets that is held by the individual;
  • Bank statements if required for a review or enquiry.

So, what we all came here to find out…are cryptoassets included in the valuation of an Estate for Inheritance Tax purposes?

YES!

Cryptoassets have a value and so although they are not included as money or currency they are included within the valuation of an Estate under ‘PROPERTY’ for the purposes of calculating whether Inheritance Tax is payable.

If you would like to have a free chat about your Will, please contact us on info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

Got a Question or want to book a FREE Consultation?

Can the Inheritance Tax process be simplified?

Can the Inheritance tax process be simplified?

The Office of Tax Simplification (YES, there is such a thing!) have published their first report on Inheritance Tax, looking at the views and experiences of over 3,500 participants.

Some key findings of the report show:

Where people were not using an Adviser to assist with the probate process, the executors were spending in excess of 50 hours on administration of the Estate.

  • Participants stated that ‘obtaining Probate’ and ‘completion of the relevant forms’ were the “most time-consuming” tasks in administering the Estate.
  • Concerns were raised over submission of Inheritance Tax forms even where no Inheritance Tax is payable.
  • 65% of participants stated that they “still had to provide significant amounts of information” in relation to the Estate regardless of whether Inheritance Tax was payable or not.

In the tax year 2015-2016, Inheritance was payable on only 24,500 Estates, however, 275,000 Inheritance Tax forms were completed and returned to HMRC. Thus showing that even where the Estate may seem small and simple, forms may still cause complications.

The key recommendation from the Office of Tax Simplification, following this report is:

“The government should implement a fully integrated digital system for Inheritance Tax, ideally including the ability to complete and submit a probate application.”

Office of Tax Simplification

This seems an ideal solution, in principle, however this is a large, not to mention expensive and time-consuming, task to achieve. A digital system for the whole process could allow for a speedier and much more simple procedure for the whole process from obtaining probate through to reporting on the Estate and payment of correct Inheritance Tax where applicable.

However, we will wait to see for such action to be taken and for now work with the system as it is.

If you would like to have a free chat about Probate or administration of someone’s Estate, please contact us on  info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

Got a Question or want to book a FREE Consultation?

Where should I keep my Will?

Where should I keep my Will?

So, you have taken the important step to make your Will but what should you do with it now?

Your Will is extremely important as it sets out, to those that you have left in charge (your Executors), exactly what should happen, upon your death, to your Estate – your money, property and possessions. 

If you do not have a Will then your Estate is passed on in accordance with the Rules of Intestacy, this may not be how you had intended, or would have wanted.

If your Will cannot be located upon your death then your Executors, or the Administrators of your Estate will have to deal with your Estate as though you had not made a Will.

Your original Will is the only legally binding document that will be accepted by the Probate Registry in order that your chosen Executors can distribute your Estate to those that you have chosen, in accordance with your wishes.

Many people choose to store their Will in their own home but recent research suggests that 67% of family members wouldn’t know where their relatives have stored their Will.

Storing your Will at home also has the additional worry of ensuring that it is protected against any flood or fire risk as well as being taken, among other valuable possessions, in the event of a burglary.

Storing your Will in a secure location, and advising your Executors of this, is essential – especially after going to the effort of making a Will and getting all your wishes down!

If you would like to have a chat with us about storage options, please do. These are low cost and include the option to amend your Will, at no additional cost, whilst your Will is stored with us.

If you would like to have a free chat about your existing Will, making a new Will or storage of your Will, please contact us on info@TotalLegacyCare.co.uk or 01727 865 121

Leah Waller

Got a Question or want to book a FREE Consultation?