The Office of Tax Simplification (OTS) has published its second report on Inheritance Tax. The report comes after the Chancellor requested a review of administrative and technical aspects of the tax back in January 2018. The first report was released in November 2018 and covered the administration of Inheritance Tax. This second report now explores the key complexities and technical issues that arise from the way the tax works.

This year has been a big year for government-related announcements, including proposed probate fee changes, civil partnerships set to be extended to mixed-sex couples, and recommendations to simplify Inheritance Tax. 2018’s research papers have also revealed some interesting insights about the Will writing and financial service industries.

We recently reported that an Inheritance Tax review was to be published by the end of this year, and the Office of Tax Simplification (OTS) has now released their first Inheritance Tax review report. This first stage of the report provides an overview of the tax and “sets out recommendations on administrative issues”.

A recent article from the Telegraph revealed how a personal representative was left with a staggering Inheritance Tax (IHT) bill of £341,278 when he was administering a £1.2 million estate. Mr Harris misguidedly distributed the assets to the beneficiaries before all of the Inheritance Tax had been paid. He did this with the understanding that one beneficiary (who received the majority of the estate) would pay any Inheritance Tax that was still owed. However, this did not happen as the beneficiary left the country without paying, leaving Mr Harris to foot the bill.

A recent article by The Telegraph has detailed the emotional stress that dealing with the death of a loved one can cause, including the anxiety of having to deal with the taxman when it comes to Inheritance Tax (IHT).

Ordinary individuals inheriting assets from overseas could risk criminal charges if they miscalculate the tax owed, reports The Telegraph.

Kings Court Trust firmly believes in the benefits of having a professional help draft a Will to ensure that everybody’s final wishes are made clear and carried out accurately. Drafting a Will and carefully considering what is to happen to our finances is not the most cheery of topics, but one that should be taken very seriously.

When making a Will, many people choose to use a DIY kit or online template for a variety of reasons. Research shows that 37% of us thought it would be cheaper than going through a solicitor, whilst others thought it would be quicker to do it ourselves or didn’t want a stranger knowing their business.

According to the Guardian, less than half of UK adults have drawn up a Will, which leaves more than 26 million people with no formal instructions on how their assets should be distributed after their death.