Will I have to pay Inheritance Tax
Inheritance Tax (IHT) is a major concern for many of our customers; especially as UK property prices have risen sharply over the last ten years even with the recent declines. We find that more and more estates fall within the IHT threshold. Without proper tax planning, people can end up leaving a substantial tax liability on their death, considerably reducing the value of the estate they pass on to chosen beneficiaries.
Minimising your tax liability and maximising what you're able to pass on calls for considerable skill and foresight - and a detailed knowledge of the IHT rules and regulations.
Inheritance tax is payable on your estate when you die, if it exceeds a certain limit. Your estate is the net value of everything you own, minus any debts. Currently 40% of an estate above £325,000 goes to the taxman. This allowance increases to £350,000 from 6th April 2010.
We can help you plan efficiently and effectively for the future.
- Review your will.
- Making full use of exemptions and reliefs on lifetime transfers.
- Optimising lifetime transfers between spouses or civil partners.
- Transferring agricultural or business property.
- Transferring assets into a trust.
- Arranging adequate life assurance to cover potential inheritance tax (IHT) liabilities.
There are many ways to reduce your liability, one of which is the establishment of a trust. Trust law is very flexible – it means you can use a trust to make a gift to anyone of any age, decide when and how that gift is passed on, and take into account possible changes in circumstances.
Certain trusts have been specifically designed to reduce IHT. Your Independent Financial Adviser can help you find the one that best meets your situation and objectives.