INHERITANCE TAX (IHT) PLANNING WILLS
"IT IS, BROADLY SPEAKING, A VOLUNTARY LEVY PAID BY THOSE WHO DISTRUST THEIR HEIRS MORE THAN THEY DISLIKE THE INLAND REVENUE"
ROY JENKINS (FORMER CHANCELLOR OF THE EXCHEQUER)
It is an inescapable fact that more and more people have become liable to this ‘death' tax than ever before. It may be a shock to know that your children could receive an inheritance far smaller than you intend because of this tax becoming due on part of your estate when you die.
Every adult has an IHT allowance (also known as the Nil Rate Band) which is reviewed annually. For the tax years up to 2015, it has been set at £325,000. This may seem, on the face of it, a rather generous figure. However when all your assets are taken into account including, for example, the value of the family home and perhaps life policies / death in service benefits from a recently deceased spouse, it is surprising how many people find themselves in a situation where IHT could potentially be payable.
The difficulty is that, traditionally, the Government fails to increase the IHT allowance in line with the monetary appreciation of people's assets, in particular property values. As the surviving spouse / civil partner generally inherits the deceased's estate which is likely to grow more rapidly in value than the IHT allowance, then on second death there could be a higher tax bill to pay than needs be.
SOMETHING CAN BE DONE ABOUT THIS...
InHeriTance Matters can draw up Wills for couples which allow for the creation of an IHT trust on first death. Once the assets have been placed in the trust, they can continue to grow in value free of IHT thus potentially reducing the surviving spouse / civil partner's IHT liability on second death.
Unmarried couples can also prepare their Wills to mitigate IHT. Do not think that you are excluded. Call InHeriTance Matters today on 01384 878950 to find out how we can help to ensure that your future needs and the needs of those important to you can be considered.
INHERITANCE TAX - THE FACTS
In the current tax year, it is estimated that inheritance tax will yield some £3 billion and that up to several million people could be affected by this tax when they die.
So what can be done? Briefly, you can...
Spend (to reduce the value of your estate)
Insure (to cover the tax likely to be payable)
Make lifetime gifts
NHERITANCE MATTERS CAN SHOW YOU ILLUSTRATED EXAMPLES OF HOW THESE WILL TRUSTS CAN WORK TO YOUR ADVANTAGE.
CALL US TODAY ON 01384 878950 AND SEE FOR YOURSELF HOW WE CAN HELP YOU.
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