Standard Life's Estate Planning Webcast gives easy update on new IHT rules

On 9th October 2007, the Pre-Budget Report (PBR) changed the way the nil rate band (NRB) works for inheritance tax (IHT) purposes.

Unused NRB on first death is now transferable from one spouse or civil partner to the surviving spouse/civil partner, allowing the couple to make more effective use of the current combined NRB of £600,000 (tax year 2007/08).

This significant change has had an impact on all those involved in advising clients on estate planning.

It affects everything from the questions a financial adviser might ask a client, to understanding a client's needs in terms of a will trust referral.

To respond to the need for more information on this important new area, Standard Life has launched a new webcast aimed at financial advisers.

In the webcast, Julie Hutchison, Standard Life's Estate Planning Specialist, looks at five areas where the estate planning advice process could have changed since the PBR.

The webcast covers the five points raised in a new "Food for Thought with Estate Planning" document also launched by Standard Life today.

The "Food for Thought" document contains five statements and asks financial advisers if they can say "yes" to all of them.

The statements are: I understand why it is important that I change my factfind to ask my clients if they have ever been widowed.

I understand why asset equalisation is no longer absolutely essential for will/IHT purposes, in the way it was before 9th October 2007.

I can think of three good reasons why it might still be a good idea for my client to have a nil rate band discretionary will trust, even after the changes in the PBR.

I understand why a Loan Plan might be more attractive for some clients now that it was before the PBR.

I understand why it is more important than ever that a record of lifetime gifts is stored safely for my client.

Commenting on the new webcast and literature, Julie Hutchison said: "The new IHT rules mean that everyone involved in this area needs to update themselves and understand how the NRB changes affect their clients.

Advisers can use the five "Food for Thought" statements to test themselves on how confident they can be on the new issues arising.

They can then watch the webcast if they need to follow-up on any of these five points." "Webcasting is a new development for us with estate planning updates.

The hope is that advisers will find it more convenient to watch a webcast for a few minutes at their desk, compared to attending a seminar with the disruption and time out of the office which that involves.andnbsp; If this experiment proves successful, we hope to be able to offer this format more often in future for quick estate planning updates.".

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