With rising house prices, more people are becoming liable for Inheritance Tax when they die. Find out if that includes you.
Out specialist Lifetime Planning and Wills team are available on 01225 755656. Alternatively, you can email them, or complete the Contact Form at the foot of this page.
What is Inheritance Tax?
Inheritance Tax (IHT) is a tax on the value of your estate when you die. The current IHT threshold in England is £325,000, meaning that if the value of your estate is below this amount, there is no IHT to pay. However, if the value of your estate is above £325,000, you will need to pay IHT on the amount that exceeds the threshold, unless exemptions apply.
Who has to pay Inheritance Tax?
Not everyone has to pay IHT. For example, there is no IHT to pay if you leave your estate to your spouse or civil partner. There is also no IHT to pay if you leave your estate to charity.
How can I reduce my IHT bill?
There are a number of ways to reduce your estates IHT liability, including:
- Gifting money to family members in your lifetime.
- Investing in assets qualifying for IHT relief.
- Using trusts.
- Taking advantage of the residence nil rate band.
- Writing any life insurance policies in trust.
More information is available on our dedicated page on Inheritance Tax Planning.
What should I do if I think I may have to pay IHT?
If your estate may be liable for IHT, it’s important to speak to our specialist team as soon as possible. We can help you understand your options and make the best decisions for your circumstances.
Here are some additional things to consider when planning your inheritance:
- Your beneficiaries’ needs. It’s important to consider the needs of your beneficiaries when planning your inheritance. For example, if you have young children, you will probably want to leave them enough money to cover their education and upbringing.
- Your own financial security. You should also make sure that you have enough money to live comfortably in retirement and that you are not leaving yourself short of money by giving away too much.
- The law. The law relating to inheritance tax is complex and can change frequently. So, it’s important to keep up to date with the latest developments and seek professional advice if you are unsure about anything.
Inheritance tax planning can be complex, but it’s important to take steps to reduce your IHT bill if you can. By speaking to our specialist team, you can ensure you are making the best decisions for your circumstances.