Inheritance Tax Planning
Often clients will be subjected to this tax and not know it. Families are caught unawares! Many houses are now worth more than the minimum level to be charged inheritance tax. Planning now can minimise, if not remove this tax demand entirely.
This can be a complex subject and the effects of not planning can be significant for your surviving family. In addition, we can offer help to Executors of an estate with their application, policy valuation and understanding of assets, investments and life assurance policies (if applicable). Our Executor Services and your requirements can be considered further by telephone or email.
Wills
I am sure that your solicitor or legal adviser will have recommended that you make a Will. We would always recommend that a client has made a Will, and that they keep this up to date. This ensures that you do not die intestate, which can create significant and unnecessary problems.
Main Exemptions for tax year 2009/2010
| Nil rate tax band | £325,000 for a single person |
| £650,000 for a married couple or a civil partnership, on last death | |
| Annual Gift Allowance | £3,000 |
| Small gifts per donee | £250 |
| Gift on marriage | £5,000 to children |
| £2,500 Bride, Groom, Grandparents | |
| £1,000 Others | |
| Gifts to Charities | Exempt |
| Gift from surplus income | £ Dependent on circumstances |
It is simple to take inexpensive steps to solve this problem or to go a long way to alleviating the inheritance tax liability. This is where bespoke planning, usually using a combination of exemptions and allowances, allows us to provide you with recommendations for you and your family to consider. We would need to take account of the gifts and allowances that you have used in the past, such as Potentially Exempt Transfers (PETs).
If you would like us to work with your legal adviser to control your liability then this can be easily arranged.
Many exemptions, such as the gift from surplus income are overlooked but can be used to powerful effect. Exemptions are annual and if you don’t use it you lose it! Some call this, and we would agree, an unnecessary tax.
Talk to us and see what planning can be used to save your family estate.
Please note that this is for guidance only and we recommend that you seek further advice from an Independent Financial Adviser before proceeding further. The Financial Services Authority does not regulate taxation and trust advice.
