Inheritance Tax and Estate Planning
Inheritance Tax (IHT) used to be seen as a tax that only affected the wealthy, but this is no longer the case. If your assets, including your house, are worth, or likely to be worth in the future, more than £300,000 (£600,000 for a couple), then your estate could be liable to IHT at 40% unless you start making plans now.
There are several ways to reduce your potential liability to IHT, and you don’t have to wait until you have retired before you start the planning process. You can give assets away, insure against a potential liability, or make use of trusts to take assets outside of your estate.
Recent changes to IHT allowances in the October 2007 pre budget statement, and trust legislation in the 2006 Finance Act have meant that many peoples IHT planning has been thrown into disarray. This has emphasised the need for ongoing advice to ensure that your plans are relevant to your current situation and still in line with current legislation.
We can help you, and your family, determine the best course of action to resolve any potential liability you may have and ensure that as much of your estate passes on to your beneficiaries and as little as possible goes to Her Majesty’s Revenue and Customs in the form of Tax. We will guide you through the minefield of Trusts and ensure that whatever plans are put in place do not restrict your need for income or access to capital.
If you would like to find out more please contact us for a free consultation.