The Daily Telegraph, a prominent national newspaper, has recently launched a campaign urging the government to abolish inheritance tax (IHT). The publication highlights that over 50 Conservative MPs also support this call, considering the tax to be morally unjustifiable for individuals’ estates after their passing.

The newspaper’s front-page story emphasizes that the number of estates subject to IHT has significantly increased since the Conservatives came into power, despite previous promises to eliminate the tax for all but the wealthiest estates. This surge in affected estates is attributed to the continuous freezing of nil-rate bands.

The article argues that IHT is fundamentally unfair as it penalizes individuals who have diligently saved money throughout their lives, having already paid taxes on their income. It particularly impacts middle-class families seeking to assist their children or grandchildren in purchasing homes.

To address these concerns, The Telegraph is campaigning for the scrapping of inheritance tax, urging the Conservative party to prioritize this in their next election manifesto. The newspaper highlights growing apprehension that if the Labour party assumes power, savings and assets will be targeted to finance increased state spending.

The publication also notes an increase in letters from its readers, expressing their dissatisfaction with intrusive probate investigations into their estates.

Former Chancellor Nadhim Zahawi joins the criticism, asserting that inheritance tax is morally wrong, as it seizes assets upon a person’s death. Furthermore, it creates financial and economic distortions with far-reaching consequences.

Jacob Rees-Mogg, the former business secretary, echoes the sentiment, calling for the abolition of IHT and highlighting what he calls a relatively ‘modest’ contribution of £7.1 billion to the Treasury last year.

The Telegraph shares its analysis, revealing that the number of individuals paying IHT is projected to rise by 45% over the next decade, with the average bill surpassing £300,000.

In response to the campaign, a Treasury spokesperson emphasizes that over 93% of estates are expected to be exempt from IHT in the coming years. However, the tax continues to generate over £7 billion annually, supporting essential public services such as the NHS and schools.

To understand where you stand with inheritance tax and to explore strategies to mitigate its impact, speak with Ackary Benjamin, whose expert team can provide valuable insights to help you navigate the complexities of estate planning and taxation.

Karl Lagerfeld, the renowned former Creative Director at Chanel, left behind a world-famous cat named Choupette upon his passing in 2019. While the exact amount is undisclosed, reports suggest that Lagerfeld left Choupette a substantial sum of $1.5 million in his will. Now, Lagerfeld’s former housekeeper, Françoise Caçote, is responsible for caring for Choupette. But how does the law handle leaving money to an animal, and how does it practically work?

Legally, pets are considered personal property, unless they serve as working animals, in which case they are treated as business assets. Choupette, being a social media “influencer” with over 250,000 Instagram followers and substantial earnings during Lagerfeld’s lifetime, blurs the lines of what constitutes a “working animal.” However, more traditional forms of animal work are likely what authorities had in mind.

Leaving money directly to an animal, as property, is not possible. So, what are the available options? One option is to establish a trust for the pet’s benefit. Typically, trusts require human beneficiaries, but in the case of trusts for the general welfare of animals, they are valid as charitable trusts. In a trust specifically for a testator’s pet, the funds are designated to a legatee who acts as the nominated trustee responsible for caring for the pet. If the trustee refuses the responsibility, the trust fails. However, if the trustee accepts, the court issues a Pettingall order, instructing the trustee to use the funds for the pet’s welfare. If the trustee fails to fulfill their duties, those entitled to the property can seek court intervention to enforce the trust or claim the property under a resulting trust.

Another option, more straightforward but still requiring careful drafting, is to leave the pet alongside a cash legacy to a designated person. The terms should ensure that the person receives the legacy only if they agree to care for the pet. Although there is no oversight of the person’s actions, choosing someone the testator trusts is crucial. This arrangement should minimize the need for further court involvement after the testator’s death.

It’s worth noting that bequests for the benefit of pets can sometimes lead to contentious estate disputes. In the United States, billionaire hotelier Leona Helmsley famously left a significant portion of her estate for the care of dogs, including a specific trust fund of $12 million for her Maltese dog, Trouble. In England, the recent case of Reginald and Maureen McLean involved a dispute over mutual/mirror wills, where the deceased’s son claimed his mother intended for him to inherit her property to care for her parrot and Jenday.

Ensuring the welfare of pets in wills involves navigating a legal landscape that blurs the distinction between property and companionship. It is essential to carefully consider and designate a guardian for your beloved furry friend, someone who will ensure their well-being and continue to celebrate your legacy even after you’re gone.

New research has shed light on the fascinating world of peculiar assets inherited through Wills. From axes and stuffed snakes to an unexpected tortoise, a survey has unveiled some truly intriguing items. Alongside more conventional bequests like horses and Victorian trumpets, it is the “weirdest” belongings that have captured attention, including singular socks, spades, and even “my granny’s false teeth.”

Ben Furlong, Customer Services Director at Estatesearch, explained that the inspiration for this study came from the Bond film Skyfall, where M leaves James Bond a “Bulldog figurine” in her Will. This curiosity led to the discovery of numerous interesting and unusual items that people have inherited.

Respondents also shared other unconventional bequests they had received, ranging from boats and cutlery sets to egg timers, pennies, torches and handcrafted hair spray can covers. These diverse and surprising inheritances serve as a testament to the extraordinary nature of some bequests.

In light of these intriguing findings, it begs the question: Do you have any quirky gifts you would like to leave in your Will? If you have unique belongings or cherished items you wish to bequeath to specific beneficiaries, it is essential to ensure that your wishes are documented correctly. Ackary Benjamin is here to assist you in this process, providing professional guidance to ensure your personalized gifts are bequeathed to your desired recipients. Book an appointment today to secure your legacy and make your extraordinary bequests a reality.