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Tipi Wills & Planning

Tel: 01727807169
"An Englishman's home is his castle" Edward Coke 1604 Whether its a tipi or a castle it's your home

Isle of Wight, Hampshire & Southern Counties
Take fear out of planning with professional, caring and quality guidance

For Connected Comprehensive Inheritance, Healthcare & Life Planning
Wholelife Planning from a team of experts offering complete solutions
Protect You and your loved ones
Planning with Power
Overcome barriers of Cost, Time and Conflict
​SERVICES THAT SUIT MODERN LIVES FULL 100% VIRTUAL OFFICE
Keeping on living our lives to the full
NO COMPROMISE ON QUALITY AT COMPETIVE PRICING
Key Essential Services
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Post Death Life Support Service
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Soon : Fifth Dimension Life Support Package
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Implement a Will and / or Attorney
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Resolution Services : Mediation and Empowered To Talk
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Preparations for Hospital
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Review & implement funding for care, short term or long term
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Place a carer
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Use of Trusts
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Care Home Fees
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Local Authority & Deprivation of Assets
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Protection of assets and people
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Pension Review
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Inheritance Tax
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Tax Review
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Mortgage & Protection
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Elder Care Consultancy
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Key Document Review
Expanded Core Planning
Services
1. Wholelife Planning - Wills, trusts, inheritance, tax, funding & investment, protect property & people, Attorneys, life care, life changes, illness, diagnosis, accident
2. Multigenerational & Blended Family
3. Life Care Planning
4. Serious & Terminal Illness
5. Right to Die at Home
(End of Life Care Planning)
6. NEW Post Death Life Support
7. Under development :
"Fifth Dimension Life Support Pack"
(eg Dementia, parkinsons, alzheimers)
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LIVE YOUR BEST LIFE : PREPARE
Key Documents
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Up to date Will and Will Trusts
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Lasting Power of Attorney for Health
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Lasting Power of Attorney for Finance
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Advance Directive / Living Will
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Advance Care Plan centralising documents
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Business Power of Attorney
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Document of Decisions
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Letter of Wishes
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Supporting documents : evidencing consults, choices & decisions
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Legal Consultant & Independent Mediator
Contact me & start your seamless, connected planning journey
TIPI WILLS PICTORIAL SNAPSHOT
Our virtual office can be 100% online The beauty of using technology (eg email and Zoom) is the flexibility. Your location does not matter for appointments or documents. Finding time is much less of an issue. Costs and expenses are kept down too, yet its still great getting to know each other face to face. The choice is yours. Book your free consultation now
Not yet mobile phone adapted website
We are pleased to announce the formation of Isle of Wight Mediation to focus on a wide range of Resolution Services. Our name is changing to Tipi Wills & Planning. Its unique combination of services for planning and mediation combined remains
The content, concepts and planning services in these websites and used by this business are strictly the creation of and the property of Patricia Horwood trading as Tipi Wills & Planning & Isle of Wight Mediation
How do I fund the Inheritance Tax?
There are no spare funds available yet, you are looking at having to obtain a loan or negotiate with the Bank, you need the Grant of Probate to access the funds so how do you go about sorting this out? It can be pretty stressful being an executor / personal representative of an estate especially where it has to pay inheritance tax and there are no spare funds until the liquidation and/or sale of assets has occured. This is where an experienced Probate Legal Practitioner can help. We work with probate solicitors who can guide you through. If you have been appointed as an executor / legal representative, there is no obligation to do this on your own and you may formally appoint them as a replacement executor and/or enlist the services of their probate department to work with you.
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Tipi Wills & Mediation will work with you on inheritance tax planning and how to avoid unecessarily leaving assets and property subject to inheritance tax. There are numbers of things you can do to reduce your liability and discussions of your circumstances can produce a plan and guidance for you. Once your estate is in the realms of dealing with probate it can be a tricky thing to navigate. Nothing substitutes good planning, but when the time arrives it is unavoidable that there is a lot to know and understand and some professional help may be the way to go.
Paying inheritance tax when estate funds are tied up
This article was written by KWW Probate Solicitors in May 3, 2022
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When applying for probate in regard to an estate which is subject to inheritance tax (IHT), the Probate Registry requires tax to be paid before the grant of probate application. This can prove difficult as most financial institutions will not pay out sums to executors without first seeing the grant, but there are ways to deal with this dilemma.
“If assets are tied up in a business or property, executors may not be holding sufficient liquid funds to pay the inheritance tax up front. However, executors can apply to a bank which is holding estate assets and request the bank to pay HMRC directly. In addition, certain IHT payments can be deferred.”
What are the rules for paying inheritance tax?
If IHT falls due on an estate you are dealing with, you must pay this within six months of the person’s death. Payments made after the six month deadline will be subject to interest and possible fines. This six-month period represents a maximum time limit as IHT must be paid upon submitting the IHT account to HMRC. Without first paying the IHT liability, HMRC will not allow the Probate Registry to release a grant of probate, and without the grant of probate you cannot continue the administration of the estate.
As a grant of probate is needed in order to access most estate assets, it is common for executors to apply to one or more of the banks holding funds and to request the bank pays the IHT due directly to HMRC. Once the tax liability has been settled, HMRC will confirm this to the Probate Registry and you will be free to obtain the grant of probate.
If funds held in bank accounts and other liquid investments are insufficient to cover the tax liability in full, you may find yourself in a position where you are unable to clear the tax until a grant of probate is obtained and assets can be sold, while also being unable to obtain the grant of probate until the tax liability is paid. In these circumstances speak to an expert probate solicitor to discuss whether deferred payments could be an option for you.
Paying IHT by instalments
HMRC does allow inheritance tax to be paid by instalments over a 10-year period on certain estate assets which are:
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Land and real property
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Business assets
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Shares which gave the deceased complete control of a company
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Certain unquoted minority shareholdings (dependent upon specific criteria).
Inheritance tax falling due in respect of any of these types of assets can be split into 10 equal instalments. However, the first of the 10 instalments is payable prior to the grant of probate being issued.
When opting for payment by instalments, it is important to note that interest may accrue. If instalments relate to business assets or shares, interest only arises on each instalment if it is paid late. With land or real property, the instalments carry interest from six months following the date of death until the full IHT is settled, even if all instalments are paid on time.
Because of this, many executors opt for the instalment option in order to obtain the grant of probate but then pay all the IHT due as soon as assets are sold to minimise interest. When assets are sold which themselves are subject to IHT by instalments, the full IHT due on that asset must be paid at the point of sale. The minimisation of interest should also be a key factor when executors are considering their duties to the beneficiaries, as it is of course in the beneficiaries’ best interest to pay as little interest on IHT as possible.
What can be done if funds are not sufficient to pay the first instalment of IHT?
If you are the executor of an estate where all, or most of, the assets are land or real property, you may find yourself without available funds to pay any of the inheritance tax due prior to obtaining the grant of probate. You, or the beneficiaries, may have to temporarily meet the IHT liability personally by way of a loan to the estate. Alternatively, you can apply for a bank loan to cover the tax due.
Either of these options will require you to ensure the terms of the agreement are clear and fair, and you should seek advice as to the suitability of these options in your individual circumstances.
Where executors and beneficiaries are unable to cover the cost of IHT and a bank loan is not an option, HMRC may agree to the issue of a grant of credit. HMRC will require a professional undertaking that IHT will be paid once assets are sold and may even require confirmation a purchaser has already been found. As such, this option will usually only be available when you have a legal representative acting on your behalf.
Our expert probate solicitor can help.
Payment of inheritance tax can be tricky to navigate, as is it often a circular issue between payment of tax and release of the grant of probate. However, it is not an insurmountable issue and can be resolved with the correct professional advice. Obtaining advice as early as possible can prevent stress and unnecessary interest.
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.