When looking into estate planning and the creation of wills and trusts, one of the most common concerns that people have is what will I leave behind? For many this coincides with a longing to ‘look after’ their children even after their passing (primarily financially). This was the case with Princess Diana, whose will left the vast majority of her estate to her two sons: William and Harry. Originally the terms of this document outline that the assets of Princess Diana were to be split among the two boys when they turned 25 years old. After her tragic death in August of 1997, the executors of her estate requested and successfully changed this age, increasing it to 30.
While Prince William inherited his share already, Prince Harry is set to inherit a sum of ten million pounds (the equivalent to eighteen million dollars) on his thirtieth birthday this September. As it stands, 40% of this will immediately go to taxes due to the inheritance tax. Although experts claim there is no way to ‘dodge’ this tax, it can be reduced if some of the money is given to charity. While most of us will never face the issues associated with such large inheritances being taxed, it is important to consider these obstacles when drafting a will, or when inheriting from one.
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