Posted: Thursday, 22 October 2015 @ 10:54
Sometimes it can be amazing how the legal landscape can change.
In the space of three months with Ilott judgment and the re-election of the Conservative Government there have been significant (projected) changes to how individuals can provide for their children.
The Ilott Judgment has been covered elsewhere on this blog and online but in my view represents a red rag to Adult Claimants who have not been provided for by their parents.
On top of this, the Government is pressing ahead with its plans to create a £1m threshold for IHT for those with "direct descendants." By 2020 a couple will be able to pass on their house to either their children or grandchildren without them having to pay 40% inheritance tax. The current threshold is £650,000.
Particularly on the latter point the Sunday Times Money section last week was having a bit of rant where a number of their readers were complaining that these changes discriminate against childless people who have no children. According to the Institute for Public Policy Research, by 2030 there will be 2m adults aged over 65 without children.
Ultmately as much the politicians and the judges will have to do something about the Ilott judgment to provide clarity(Testamentary Freedom v Forced Heirship), it would not surprise if quietly the Government changes tack on the IHT reforms.