Inheritance Tax and Estate Planning

Planning to minimise the liability to Inheritance tax planning (IHT) is a team effort involving you and your professional adviser. To enable long-term objectives to be set, it is necessary to make decisions about your finances and your family. Currently only 2% of estates have a liability to IHT. Talk to us to make sure you are not one of them!

It is possible to transfer unused nil-rate band allowances between spouses or civil partners. These rules apply to allow a claim to be made to transfer any unused IHT nil-rate band on a person's death from the estate of their deceased spouse/civil partner.

The amount of the nil rate-band potentially available for transfer will be based on the proportion of the nil-rate band unused when the first spouse or civil partner died. If on the first death the chargeable estate is £150,000 and the nil-rate band is £300,000, then 50% of the original nil-rate band is unused. If the nil rate band when the surviving spouse dies is £350,000, then that would be increased by 50% to £525,000.

When should I plan for IHT?

Now! IHT is currently payable where a person's wealth is in excess of £325,000 for the years 2011/12 - 2014/15. Thus, if you own your own house and have some savings, life assurance policies, or business assets, your estate could be liable

All of 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.