Step publishes draft model clause for Wills
The Society of Trust and Estate Practitioners (Step) has revealed a draft model clause for Wills.
It is proposing a reduced rate of Inheritance Tax (IHT) where there is a charitable legacy of ten per cent or more left in a document of this type. Wendy Walton, chairman of the Step technical committee, pointed out HM Revenue and Customs (HMRC) has recognised the take up of the measure will depend on the “extent to which the reduced rate is promoted by charities and by professional advisers”. She added HMRC has also encouraged the use of standard clauses and as a result of publishing this draft model clause, Step is urging charitable giving through making it easy for people to take part in the initiative. Research by accountancy firm Grant Thornton previously found 62 per cent of individuals believe they are liable to pay IHT, when in effect it only applies to around two per cent of people, reported Accountancy Age.
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