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Wills & Estate Planning
When does the inheritance tax spouse exemption end?
The spouse exemption under Section 18 of the Inheritance Tax Act 1984 ends on the date of the final divorce order. Until then, transfers between spouses pass free of inheritance tax without limit, subject to the long-term resident rules introduced in April 2025 where one spouse is not a long-term UK resident.
Can I transfer assets to my children during divorce to reduce my estate?
Lifetime gifts remain legally possible, but the family court can set aside any transfer made to defeat a financial claim under Section 37 of the Matrimonial Causes Act 1973. Gifts that go beyond reasonable lifetime planning, particularly those made after proceedings have begun, are likely to be reversed. Specialist advice is essential before any significant transfer.
Does separation revoke my will under UK law?
Separation has no effect on a will. The Wills Act 1837 only treats a spouse as predeceased once the final divorce order is issued. Until that date, your spouse remains a beneficiary, executor where appointed, and entitled to inherit under the existing will. The only route to remove your spouse during separation is to write a new will or formally revoke the existing one.
What can I do if a family member has died without a Will?
If someone dies intestate (without a will), their estate is distributed according to intestacy rules which may not reflect their wishes. You can apply for letters of administration to manage the estate, and beneficiaries can use a Deed of Variation within 2 years to redirect inheritances more tax-efficiently or to better reflect the deceased's likely intentions.
What if I already have a will or existing plans?
If you already have a will or existing plans, Bluebond will review them and identify opportunities to improve your position. Many clients find that their existing plans can be significantly improved, or that circumstances have changed since they were created, and we'll work with your existing documents and advisers to enhance your overall strategy.
When can a Deed of Variation be used?
A Deed of Variation can be used within 2 years of death to redirect inheritances from a Will or intestacy. This is useful for inheritance tax planning, allowing beneficiaries to redirect gifts to other family members or into trusts to optimize tax efficiency after seeing the full estate position.
