Should I scrap my will trust?
Q. I set up a nil-rate band discretionary trust two years ago to avoid inheritance tax. Now the threshold has doubled to £600,000 for couples, do I need to go back to my solicitor to re-write my will?

A. Couples can now pass on a combined £600,000 worth of assets tax free, which will take the homes of many people out of the inheritance tax bracket. However this does not necessarily mean that you should scrap your nil-rate will trusts. The reason for this is that the taxation system is constantly changing, and there could be more changes on the way in next April’s budget. I would therefore suggest that it may be better to leave the will as it is for the moment: if one of you dies in the short term it should still be possible for your trustees (provided they act within two years of death) to make any necessary changes. The important thing will be to go and see your solicitor when the first death occurs in order to achieve the most tax effective result in the light of the rules pertaining at that time.

Hidden depths
Q. My estate agent told me that the buyer of my house was an individual who was unable to make a higher offer. It turned out the buyer was actually a large firm which could obviously have paid more. I feel the agents acted in the buyer’s interests rather than mine, even though I was paying their fee.

A. It’s possible of course that your estate agents didn’t know the identity of the buyer themselves. After all, no prospective purchaser is going to advertise the fact that they can afford to pay more. If you can prove that the agents weren’t acting in your best interests you could sue them for breach of contract; alternatively discuss the matter with the council’s trading standards officers. There’s an independent ombudsman who deals with complaints about estate agents if they are members of the scheme. If they have a personal or financial interest they may be in breach of their duty of disclosure under the Estate Agents Act.

Home hope
Q. My landlord offered me the right to buy my house on condition that I made my mind up within ten days. I didn’t manage to sort it out in such a short space of time and he now says he won’t sell: can he just withdraw his offer like that?

A. Yes. Even if you’d turned up at his house the next day with a suitcase full of cash he could probably still have pulled out of the deal. Unlike most other contracts, contracts for the sale of land must be in writing, contained in a single document and signed. Otherwise they can’t be enforced.

Family ties
Q. When my husband died 16 years ago he didn’t leave a will so the money was left in trust, part to me and part to the children. The solicitor became a trustee, for which he receives an annual fee. The children are now grown up, so we were wondering whether the trust can now either be put into their name or at least allow them access to some of the capital.

A. It’s possible that when your husband died you received a fixed sum (including property) and a life interest in half the balance under the intestacy rules. Your children will have shared the other half, and it’s likely, if they were minors, that it is this money that is held in trust for them. If this is the case then, now that the children have reached the age of 18, they will be entitled to this capital. On your death they will receive the capital from the share of the estate from which you draw a life interest. You should see the solicitor to check the exact terms of the trust.

Gone to ground
Q. Our annual ground rent demand usually arrives in November, but last year we didn’t receive the bill. The firm of solicitors that normally deals with it have told us to wait, but we are getting worried because we want to put the house up for sale soon. Should we send a cheque for the amount we owe?

A. Your lease agreement is likely to say that you’re obliged to pay your ground rent on time whether or not you receive a demand for it. But as a result of a recent change in the law you are now no longer liable to pay ground rent unless you receive a demand for it in a prescribed form. The landlord cannot begin any legal action unless he has previously served the demand in the correct format, given the correct period of notice, and the leaseholder has failed to respond. You may have to make an allowance for the ground rent owing when you come to sell your house.