I attended a meeting yesterday with married couple, Arthur Dale (68) and Amanda Dale (60), to discuss wills and inheritance tax planning. Neither Arthur nor Amanda has previously made a will or engaged in any inheritance tax planning.

Arthur and Amanda have been married since 1985 and have two adult children, Kira, aged 30, and Samuel, aged 28. Kira is married to Madeleine and they have two children, Arne (aged 6) and Poppy (aged 4), who are Kira's biological children, legally adopted by Madeline. Samuel lives with his partner Grace and they have a son, Daniel (aged 2). Samuel established his own design business in 2015, Imago Designs Ltd, in which both Arthur and Amanda have shares. Arthur and Amanda had another son, Duncan, who died aged in 2014, leaving a widow, Sarah, and two children, Sia (now aged 12) and Marc (now aged 10).

Arthur and Amanda live at 3 Lancaster Mews, Cheltenham. The property has an annex, in which Amanda's mother, Betty (aged 78). has been living since the death of her husband (Amanda's father) last year. Arthur's parents died several years ago. Arthur has two brothers, Michael and Alan, and Amanda has a sister, Anabelle.

To their knowledge, both Arthur and Amanda are in good health, but Arthur is unable to write following an injury to his hand following a boating accident in 2018.

Arthur is a freelance business coach and Amanda is a consultant surgeon at Gloucestershire Royal Hospital. Amanda has a death-in-service benefit, which pays out a lump sum equivalent to four times her salary if she dies whilst employed by the NHS. She has filled in the paperwork to nominate this to Arthur.

Amanda and Arthur's assets are set out below at the end of the Memorandum. Arthur and Amanda would like to make wills as follows: Arthur's instructions Executors: Amanda and Kira

Burial wishes: cremation Legacies:

- Rolex watch to Samuel.

- 50,000 to each child.

- 5,000 to each grandchild.

- 1,000 to each of Madeline, Grace and Sarah.

- Residue to Amanda, but if she has predeceased to the children in equal shares.

Amanda's instructions

Executors: Arthur and Kira Burial wishes: cremation Legacies:

- All jewellery to Kira.

- 50,000 to each child.

- 5,000 to each grandchild.

- 1,000 to each of Madeline, Grace and Sarah.

- Her share in 14 Brooklands Avenue, Prestbury to her mother.

- Residue to Arthur, but if he has predeceased to the children in equal shares.

In terms of inheritance tax planning, they would like advice regarding how best to minimise inheritance tax on death and have raised the below queries:

They are considering transferring the legal title to the Bude holiday property into Kira's and Samuel's joint names in order to remove it from their inheritance tax estates. They would like to know if this is a good idea.

One of Amanda's colleagues mentioned that she might want to reconsider her nomination in relation to the death in service payment as nominating it to Arthur does not save inheritance tax. She would like to know more about this.

They are considering each making a lifetime gift of their shares in Imago Designs Ltd to Kira and Samuel and, without you doing any calculations, would like to know, from a theoretical perspective, the tax consequences of doing so.

One of Arthur's friends mentioned that they should start to think about making lifetime gifts of cash to their family to save inheritance tax on death and they would like to know more about this.

Issues to consider and address:

Explain how their respective estates would be distributed if they each died intestate? Consider both the first and second death.

Identify and explain what issues arise in relation to their will instructions and highlight where further instructions will be needed.

Regarding Arthur's disability, advise on the procedure that will need to be followed for him to execute his will.

Are there any issues that arise regarding Amanda's mother, Betty? You should only consider inheritance matters, not land law or trust matters.

Regarding inheritance tax, please consider and advise on their specific queries.

2

Arthur and Amanda's jointly Value owned assets

12 Lancaster Mews, 1,000,000 Cheltenham

Seaview Cottage, Bude 800,000 Savings in various accounts 300,000

Amanda's assets

14 Brooklands Avenue, 300,000 Prestbury

Shares in Imago Design Ltd. 30,000

Portfolio of shares in public 200,000 companies.

Personal possessions, 40,000 including jewellery.

Arthur's assets

Shares in Imago Design Ltd. 30,000

Personal possessions, 50,000 including various Rolex watches

Assets Notes

Owned by Arthur and Amanda as beneficial joint tenants, no mortgage.

Owned by Arthur and Amanda as beneficial joint tenants, no mortgage.

Joint accounts.

Amanda and Annabelle inherited this property from their father, and it is owned by them it as beneficial joint tenants. No mortgage.

Acquired in 2016 when worth 2,000. Acquired in 2016 when worth 2,000.