Inheritance Tax Planning
In 1789 Benjamin Franklin composed that famous quote that “…in this world nothing can be said to be certain, except death and taxes” – and inheritance tax (or IHT as is it known), is where these two commonly meet!
Your estate will owe 40% on anything above the personal threshold which is in place at the time you die, known as the Nil-Rate Band and currently set at £325,000.
From April 2017, increments are being introduced annually (to 2021) called the Residential Nil-Rate Band which will potentially raise the threshold to £500,000 or £1m for married couples, widows or widowers providing their home is inherited by their children or grandchildren*. These changes represent substantial tax saving, providing existing Wills and Trusts are fit for purpose – contact Sapphire Wills to arrange a free of charge, no obligation review.
Your assets include:
- Cash in the bank
- Any property or business you own
- Payouts from life insurance policies
Dealing with the implications of IHT is one of the biggest single money-saving things you can do, as some simple actions can save you hundreds of thousands of pounds. Yet many people ignore it, either not wanting to consider the future or simply unable to broach it with relatives for fear of seeming grasping.
Here at Sapphire Wills, we’ll assess your IHT liability and help you secure everything you’ve worked for for the future of your family, whilst taking into account your own need for financial security and comfort in your old age.
*The above statement regarding changes to IHT is based on current understanding of tax legislation which may change in the future.