What is Inheritance Tax
Inheritance Tax is one of the most unpopular forms of taxation. The treasury received £69.3 billion pounds in April 2022; £10 billion more than in the previous year.
Inheritance Tax mostly arises on death but can apply to transactions during your lifetime such as transferring money or property into a lifetime trust.
'Claudine was really flexible over booking to come to our home to discuss writing our wills'
Mrs De Lucchi, West Bridgford
Why plan ahead?
You work hard and pay taxes during your lifetime and then if your estate exceeds allowances and reliefs, your estate will be taxed again and your loved ones will receive less on your death.
The earlier you plan, the more options will be available to you to preserve your wealth for those you love.
Why is it important to have an up to date Will?
- To make sure you are benefiting who you want to and have the right structure in place.
- To make use of the spousal exemption and avoid unnecessary first death IHT charges
- To keep up with tax changes
- Old wills may contain clauses that are not tax efficient particularly in relation to the transferable nil rate band.
- To benefit from a reduced rate of IHT through gifts to charities in your will
- To use trusts that can benefit from Business Property Relief
- If you have remarried after being widowed, you can use a trust in your will to preserve the transferable allowance of your late spouse.
- If you are an unmarried couple, trusts can help to reduce double taxation and avoid the inflation of the surviving partners estate.
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How to review your will
What other things can I do?
There is not a 'one size fits all' approach to inheritance tax planning and it should be considered as a part of your general financial and estate planning.