Inheritance tax (IHT) has traditionally been seen as a tax only for the very wealthy. However, with a threshold of £325,000 (£650,000 for married couples and civil partners) and the price of houses still relatively high, even after recent corrections, more and more people are finding themselves caught in the net. This could lead to many people having to sell long-held family heirlooms or investment assets to meet tax bills that a little bit of planning could help avoid.
A good starting place is to have a Will that is up to date and reflects their current views and assets, however many of our clients also wish to help their children whilst they are still alive by gifting money outright or via a Trust.
In 2017 the main residence nil-rate band was introduced for individuals with direct descendants who have an estate (including the main residence) with total assets above the Inheritance Tax (IHT) threshold (or nil rate band). If you would like to know more about how this might affect your IHT planning, contact us and we will be happy to explain the new rules.
As part of our Wealth Management Service we look for ways to mitigate the impact of Inheritance Tax on your estate.