April 2006

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SAVE UP TO £114,0001 IN INHERITANCE TAX WITH
MORE TH>N FAMILY LEGAL SERVICES

- 2.1 million homes are now subject to Inheritance Tax2
- MORE TH>N Family Legal Services enables customers to create a Will online allowing them to fully utilise their Inheritance Tax allowances, free of charge
- The right Will can save people up to £114,0001 on Inheritance Tax

The number of UK homes subject to Inheritance Tax has tripled in the past five years3, so leading insurer MORE TH>N is encouraging homeowners to take action now to reduce their potential tax liability by preparing or updating their Will.

The Inheritance Tax threshold is due to move to £285,000 on 6 April (from £275,000), and MORE TH>N has enhanced its Family Legal Services package to offer a Will-writing product that could save customers thousands of pounds in Inheritance Tax.

Discretionary Trust Wills4 can reduce Inheritance Tax (IHT) liabilities by £114,0001, by legally maximising IHT allowances. This type of Will is suited to people who are married or in a registered civil partnership, who jointly own the home they live in, and who have an estate that is worth more than the Inheritance Tax allowance.

Many people provide for their spouse/civil partner to receive their share of their property when they pass away. Whilst this is a tax-free gift, it generally means that the deceased’s tax-free allowance is not used. When their spouse/partner passes away, they will own the entire home, yet only have one tax-free allowance to use, often resulting in a much higher Inheritance Tax bill than necessary. By enabling the first deceased to gift (for example, to their children) their share of the property via a Discretionary Trust, the tax-free allowances of both spouses/partners can be used, maximizing tax savings, and at the same time enabling the surviving spouse to maintain control over the property.

While preparing this type of Will could cost up to £1,000 with a high street solicitor or Will-writer, with the Family Legal Services extension to MORE TH>N home insurance it can be created at no cost.

In addition, people in Civil Partnerships can now also quickly and easily create a Will through MORE TH>N Family Legal Services.

Graham Hollebon, head of product for MORE TH>N, commented: “In recent years more people have moved above the Inheritance Tax threshold purely because the value of their home has increased , and their families may now be subject to hefty tax when they pass away. Inheritance Tax is estimated to bring the government an income of £3.4bn this year5.

“By creating a Will with MORE TH>N’s Family Legal Services package, couples can save up to £114,0001 in Inheritance Tax, at no additional cost. I don’t know anyone who couldn’t do without that sort of saving.”

MORE TH>N Family Legal Services costs less than £1.50 a month (around £18 a year), and is available as an extension to MORE TH>N home insurance. Once purchased there is no charge to use the service, and no limit on the number of times it is used. It provides £50,000 legal expenses cover, a 24-hour legal services helpline and over 200 professionally-written, interactive v documents available anytime on the MORE TH>N website.

More information on Family Legal Services is available from www.morethan.com/home or by calling 0800 300 680.

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