Inheritance Tax Planning
Due to an increase in property values over recent years, many people find that they are (perhaps unknowingly) over the current Inheritance Tax nil-rate band of £312,000.
Inheritance Tax (IHT) is presently charged at the rate of 40% on the value of the assets exceeding the nil-rate band (with some exceptions as to business and agricultural property).
Thus, an estate consisting of a home worth £312,000 and a further £100,000 of other assets will pay tax of £40,000. Although assets passing to a spouse are exempt for Inheritance Tax purposes, where everything is left to the surviving spouse, the two estates will be amalgamated and on the survivor’s death Inheritance Tax may need to be paid.
Although to a certain extent, we are ultimately in the hands of the Government as to how effective any Inheritance Tax planning may be in the future, it is currently possible to mitigate your IHT liability with specialist advice from a solicitor.
Members of the team at BHP Law regularly provide advice and guidance concerning the mitigation of Inheritance Tax and by working closely with BHP Financial, our team of independent financial advisers, also means we can provide additional advice and guidance, in relation to the financial aspects of inheritance tax planning, pensions and funding for residential care.
