Many people think that inheritance tax will not apply to their estate when they die. But rising house prices over the decades, plus investments and savings can put many people above the tax-free threshold of £325,000.
If you leave an estate valued at more than £325,000, your estate may have to pay inheritance tax at 40% on anything above that figure. Without inheritance tax planning, the people you want to benefit could face a big tax bill reducing the value of their inheritance.
There are ways to protect your assets by planning ahead, and by working with your legal adviser and your accountant or financial adviser in partnership you can arrive at the best ways of passing on as much as you can to your chosen beneficiaries who may include children and grandchildren.
There are specific allowances, exemptions and reliefs from inheritance tax which may apply to you, and another way of reducing the amount of inheritance tax paid can be to put some assets into a trust. You will also need to consider changes to the Residence Nil Rate Band due in April 2017. Although there is still uncertainty on the like changes, Else Solicitors can guide you through the basic guidelines.
It is vital that you draft a will, as this is the only sure way in which you can define who will receive your money, property and possessions after your death. Without a Will there are likely to be family disagreements, distress and uncertainty over your wishes.
How we can help
By taking expert advice from the Wills team at Else Solicitors, individuals and married couples may be able to save their beneficiaries a substantial amount of inheritance tax simply by ensuring they have made the most of the exemptions and reliefs available.
Our solicitors can also provide specialist advice and legal services on obtaining probate and funeral arrangements.
It is understandable that many people are reluctant to think about what happens after their death – but by planning now you can make life a lot easier in the future for the people you care about.