Inheritance Tax (IHT) is paid on your assets in excess of £325,000. This £325,000 tax-free “allowance” is known as your Nil Rate Band (NRB). Your assets include property, cash, insurance policies, pensions, personal belongings (known as chattels), and many other things. This can include foreign assets too. The current IHT amount is 40%. This means if you have an estate worth £500,000 at the time of your death, £70,000 will go to the taxman rather than your chosen beneficiaries.
Your tax liability can be reduced or in certain cases removed with the use of Trusts via a Full Estate Plan.
If you would like to discuss your requirements further then one of our special advisors can call you back or arrange for a visit
The rules for married couples and civil partners (NOT partners/common law) are slightly different. The NRBs of the two are combined and all tax is paid upon the death of the second person. For a joint estate worth £500,000 at the time of the second death, there is no IHT liability. However for joint estates worth in excess of £650,000, 40% IHT applies On an estate worth £750,000 at time of death the taxman receives £40,000.
Your tax liability can be reduced or in certain cases removed with the use of Trusts via a Full Estate Plan. This is an entirely legal practice. Trusts are legal structures that control ownership and use of the assets. Whilst you are alive you have full control over the Trusts and you can amend beneficiaries, appoint trustees and vary the terms.
You can see what your liability at time of death is likely to be by clicking here and using our inheritance tax calculator.
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Our experts can talk to you about the best ways to take care of your family. Nobody knows what the future holds. That’s why we believe that everyone should have a Will, Estate Plan and Lasting Power of Attorney.
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