Once again, before the Budget, there were rumours of major inheritance tax changes and once again the rumours proved unfounded. So with this issue, we have included a reminder of the basic rules while they are still with us. Tax is not, of course, the only factor affecting inheritance, and the main newsletter looks at some of the other surrounding issues which could cause bad dreams...
Divorce and Inheritance
People are often concerned to know how a past or prospective inheritance will be treated on divorce. When the Court decides how the property of husband and wife should be divided it must have regard to the provisions of Section 25 of the Matrimonial Causes Act 1973 (the Act). This requires the Court to have regard to all circumstances, the first consideration being given to the welfare of any child under 18, and to have particular regard to eight sets of factors. The most relevant for present purposes are:
