Wills & Probate
Inheritance Tax Planning
Without tax planning, many people will pass away with a substantial part of their estate being liable to inheritance tax.
Inheritance tax is currently payable on all estates over the value of £325,000 (possibly upto £650,000.00 on the death of a surviving spouse or civil partner) at a rate of 40%. In some circumstances, the tax liability payable from the estate (particularly on property) may leave the beneficiaries with no other alternative than to sell the assets. It takes away their choice on whether or not they wish to retain the property.
Your estate includes the value of your property, any savings in banks or building societies, shares and investments, life policies and personal belongings.
You may think that the £325,000.00 threshold is a relatively high figure however, the sudden increase in property prices a few years ago brought a lot of people within this bracket.
Although assets passing between husband and wife/registered civil partners are tax exempt, this will only postpone tax liability, as tax will be payable on the estate of the surviving spouse/partner. It is now, however, possible to transfer the unused inheritance tax nil rate band to the estate of the surviving spouse which could give upto £650,000.00 of the surviving spouse’s estate inheritance tax free. This will necessitate additional tax forms to be completed to apply for the transfer.
Why not make an appointment with one of our specialist team, whereby we can provide you with advice to ensure that you pay as little inheritance tax as possible.
To contact our Wills & Probate team, please call 01744 454433, or click here to email firstname.lastname@example.org >