2024 in Review
2024 has been a pivotal year in the landscape of wills and estate planning. As the year is coming to a close, we can reflect on the changes made throughout the year and there have been a number of key developments. This article delves into these developments and their implications.
Budget 2024
The 2024 Autumn Budget made several changes to inheritance tax. The Nil Rate Band and Residence Nil Rate Band will be frozen at their current values of £325,000 and £175,000, respectively, until April 2030. The taper threshold for the Residence Nil Rate Band will also remain at £2 million. From April 2026, changes to agricultural property relief (APR) and business property relief (BPR) are to be implemented. The 100% rate of relief will continue to apply to the first £1 million of combined agricultural and business assets. For assets above £1 million, the rate of relief will be 50%. In addition to this, shares designated as “not listed” on the markets of a recognised stock exchange, such as AIM, will no longer qualify for the 100% the rate of BPR and will instead qualify for 50%. From April 2027, unused pension funds and death benefits payable from a pension will be brought into a person’s estate for IHT purposes. It is still uncertain how this will work in practice and the government currently has a technical consultation on the changes. Finally, from April 2025, a new residence-based system for IHT will be introduced replacing the current domicile-based system.
Care cap scrapped
The previous Conservative Government in 2021 had committed to introducing a cap of £86,000 on the amount a person in England needs to contribute towards their care in their lifetime. This was initially due to come into effect in October 2023 but was delayed until October 2025.The Labour Government in July announced that these changes will now be cancelled.
Competition and Markets Authority Guidance
The Competition and Markets Authority (CMA) in October published their compliance guidance for unregulated providers of will writing, online divorce and pre-paid probate services. The guidance sets out the requirements of consumer law and provides some practical ‘do and don’t’ checklists and case study examples to illustrate the types of issue and potential consumer law breaches the CMA have identified. It is vital that unregulated providers of will writing read the guidance in full.
Remote execution of Wills no longer allowed
The Wills Act 1837 (Electronic Communications) (Amendment) (Coronavirus) Order 2020 (“the Order”) was enacted during the COVID 19 pandemic to temporarily amend the S9 of the Wills Act 1837 to allow for remote witnessing of wills by video link. This temporary change in the law expired on the 31 January 2024, and wills can no longer be witnessed remotely.
Property (Digital Assets etc) Bill
The Property (Digital Assets etc) Bill was introduced into Parliament in September. Its effect will be to introduce a third category of personal property which will cover digital assets. The Bill is at the time of writing at its 2nd reading in the House of Lords and is not as of yet statute. The introduction of a third category of personal property will be a significant development in the legal recognition and management of digital assets. Traditionally, personal property has been classified into two categories: tangible property, such as physical goods, and intangible property, such as stocks and intellectual property. However, the rise of digital assets, including cryptocurrencies, non-fungible tokens (NFTs), and other blockchain-based assets, has challenged these traditional classifications.
Conclusion
In conclusion, the year 2024 has brought about significant changes in the realm of wills and estate planning. As we move forward, these developments will undoubtedly shape the strategies and considerations when drafting wills. Always ensure to use a Will writer who regularly updates their industry knowledge.
