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Separation and divorce:
Wills and inheritance tax planning

Your will and inheritance tax planning should always be regularly reviewed, and separation or divorce is an important time to do so.

You may no longer wish to include your former spouse in your will, or you may wish to change the level of provision you make for him or her. You may wish to channel more of your assets directly to your children on your death, maybe by way of a trust, or you may prefer to make provision for other dependants.

Any inheritance tax planning will likely have included reliance on tax free transfers to your spouse. This will longer be relevant.

The divorce settlement may have left you with a significantly reduced estate (or even an increased estate!) and you will need to review your investments, in order to realign the balance between short, medium and long term investments in view of your requirements for income or capital growth.

You may have acquired investments, or created trusts, in previous tax planning that are no longer relevant to your changed circumstances. Part of your pension may have been allocated to your former spouse.

Even if you have not taken financial or tax advice during your divorce you would benefit from a professional review of your circumstances to put you in the best position for financial recovery after your divorce.

This can be particularly important where pensions are concerned, especially if part of your pension has been allocated to your former spouse.

We would also emphasise the need to take advice on the tax aspect of your plans, not just investment advice. Not all investments are suitable for everyone and your personal circumstances could result in a nasty tax bill if you do not consider all possible angles.